Early market creation measures: Emerging business models

Heavy-duty trucks

Current status of implementation and existing gaps

Several innovative business models, such as truck-as-a-service and battery-as-a-service are being explored to address the issue of high upfront costs linked with the adoption of electric trucks.

Examples and initiatives

Scania has introduced a pay-per-use model that provides companies with access to electric truck solutions. The model makes it easier for transport companies to switch to electric trucks, eliminating paying high upfront costs for adoption (Scania, 2023).

Shipping

Current status of implementation and existing gaps

Innovative businesses can help overcome barriers to decarbonisation in the shipping sector, such as high premiums for clean fuels and split incentives between shipowners and charters. Several such models are discussed in the literature, such as innovative leasing and cost-sharing agreements.

Examples and initiatives

The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping explores different collaborative business models to decarbonise shipping. This initiative includes a technical toolbox that provides guidelines for cost-sharing models to invest in energy efficiency (MMMCZCS, 2024).

Aviation

Current status of implementation and existing gaps

Airlines offer passengers the option to purchase carbon credits to offset their emissions. However, these measures have low uptake and are voluntary. Furthermore, many airline pricing models can disincentivise emission reductions. For instance, a direct flight is more fuel efficient, but connecting flights may be cheaper (Debbage and Debbage, 2019).

Examples and initiatives

An emerging business model for SAF production, known as the tolling model, can allow refineries to operate without purchasing or owning the raw materials (feedstock) or the SAF. In this model, customers (in this example, the airlines) control the supply chain, which can help mitigate some of the risks associated with SAF production (WEF, 2025).

Iron and steel

Current status of implementation and existing gaps

Private suppliers and buyers are forming alliances to scale up the demand for low-carbon steel products. Several industry-led initiatives to scale up demand for near-zero emissions products are being established. These initiatives aim to drive a positive trajectory towards net-zero emissions.

Examples and initiatives

Several initiatives, such as the First Movers Coalition, the SteelZero initiative and the Sustainable Steel Buyers Platform of the Rocky Mountain Institute enable corporations to participate in the joint purchase of low-carbon steel. Meanwhile, the Alliance for Industry Decarbonization initiative, chaired by IRENA, aims to facilitate dialogue at an industry level and increase co‑operation to help companies develop solid decarbonisation strategies and implementation plans, aligned with their countries’ net-zero and decarbonisation commitments (AFID, 2022).

Chemical and petrochemical

Current status of implementation and existing gaps

Innovative business models are emerging to absorb some risks associated with transforming energy- and capital-intensive sectors, such as the chemical and petrochemical sector. For instance, the Green Market Makers instrument is gaining traction in addressing multiple market failures in heavy industries and aids in boosting transactions for green commodities, lowering the green premiums.

Examples and initiatives

The H2Global instrument aims to build a market for hydrogen by matching demand and supply contracts.

Cement

Current status of implementation and existing gaps

Cement companies are moving from traditional cement sales to service-based models, low-carbon concrete leasing, recycled aggregates and take-back schemes.

Examples and initiatives

Holcim and Cemex are piloting low-carbon concrete performance-based contracts, where customers only pay for the functional life of the material (The Breakthrough Agenda Report, 2023).

Enablers

Enablers (39)