LowEmissionAsphalt-136pg-WhitePaper-May2023

P a g e | 12 Pavement Environmental Value Chain According to intergovernmental organizations such as the United Nations IPCC; research institutes worldwide; and government central banks, to slash greenhouse gas emissions to net zero by 2050, it will be necessary to invest up to $275 trillion 20 in physical assets globally over the next thirty years. A substantial part of this investment will come from private industry . At just $630 billion in annual climate investment today, the so-called “climate financing gap” is considerable. Figure 2 – Climate Finance Issuance 2011 – 2050E (Trillions USD) Source: International Monetary Fund (IMF) Sustainability has not always been top of mind for transportation professionals focused primarily and necessarily on building and maintaining high quality road systems and airports to simply get goods and people from point A to point B. That now is changing. As supply chains evolve into environmental value chains as well, the paving industry’s carbon footprint will be assessed beyond product manufacturing and construction to mirror the economic value chain. Narrow sustainability initiatives not only are inadequate to make a difference in overall transportation sector emissions, but they will also not be acceptable under current and proposed compliance frameworks. 20 Caramichael J, and Rapp A: The Green Corporate Bond Issuance Premium , Board of Governors of the Federal Reserve System, June 2022.