LowEmissionAsphalt-136pg-WhitePaper-May2023

P a g e | 26 and avoidance or substitution credits, including Carbon Offsetting and Reduction Scheme (CORSIA) are waning in value. Figure 8 – Carbon Credit Pricing by Strategy Source: World Bank Note the lagging pricing trends for less scalable, lower net impact avoidance credits. This will be critical to overcome in the paving construction industry as will be later outlined. Not all carbon offset strategies are equal (impact), and the market is beginning to differentiate. Specifically, the pavement construction industry’s overreliance on avoidance strategies for example, aggregate-centric recycling could prove problematic as they tend to offer limited abatement, making it hard to establish and achieve net impact under stringent EPD rules. Further supporting our positive (long carbon) view, one needs only to look at the recent dirge of corporate net zero carbon goals initiated by public firms the likes of FedEx, JetBlue, Disney, and Bank of America among many. The pavement construction industry’s overreliance on avoidance strategies e.g., aggregate-centric recycling could prove limiting.