In the global push to address climate change, bulk materials play a critical role due to their significant energy use and CO₂ emissions. While supply-side strategies are emphasized, they are also frequently criticized for unrealistic techno-optimism. Hence, there is increasing recognition, supported by authoritative sources including IPCC reports, that demand-side strategies are equally essential. Demand-side strategies—including more intensive use, extended lifetimes, material-efficient design, and optimized end-of-life processes—offer promising pathways to decarbonize bulk materials by reducing consumption without compromising quality of life. Additionally, demand-side exert systemic impacts on supply chains, investment trends, production costs, and broader environmental factors such as land use, water resources, and pollution. Therefore, an integrated assessment of the direct and indirect impacts of demand-side strategies, as well as the synergies between demand- and supply-side approaches, is crucial for developing effective decarbonization pathways.
Integrated Assessment Models (IAMs) are well-established tools for evaluating the systemic impacts of decarbonization strategies. While traditional IAMs offer detailed representations of supply-side technologies, their demand forecasts—especially for material demand—are often based on socio-economic assumptions and historical data. This sector-specific, isolated approach for material demand projections could result in inconsistent, detail-lacking forecasts that may violate conservation of matter. Addressing these limitations requires a unified framework for demand forecasts that ensures sectoral consistency and aligns with harmonized assumptions, thereby accurately capturing material flows driven by social demand.

Figure 1 Conceptual framework of coupled model
In this study, we couple dynamic Material Flow Analysis (MFA) with the Global Change Analysis Model (GCAM) to enhance material demand forecasts. We use steel as the representative bulk material due to its significant energy use, emissions, and strong links to key end-use demands affected by demand-side strategies. As illustrated in Figure 1, the coupled modeling approach begins with harmonized socio-economic assumptions, such as population and social wealth, ensuring consistency inside the coupled model. Using historical data on in-use product stocks, the model projects future product stocks across sectors including transportation, buildings, machinery, and others. These projected product stocks are then aligned with the end use demand in IAMs, including mobility and housing requirements. The projected product stock translates into future material inflows through stock-driven modeling, lifetime functions, and material intensity factors. Material outflows, including end-of-life scrap, are accounted for as secondary production through recycling processes. The remaining material demand necessary to sustain societal well-being is aligned with the industrial production demand represented in IAMs, while material inflows are dynamically adjusted based on endogenous material prices within the IAM.
This soft linking between IAMs and dynamic MFA establishes a coupled modeling framework to evaluating the systemic impacts of demand-side strategies on bulk materials. Beyond directly reducing product consumption and material production, demand-side strategies can substantially alleviate the burden on supply-side transformations needed to meet emission targets. This, consequently, can shift production roadmaps, reducing both investment and production costs. By integrating demand- and supply-side strategies, this framework offers a cost-effective pathway to decarbonize the bulk material loop and achieve societal emission targets.