Today, Evergreen Collaborative and RMI released a new analysis of how 26 U.S. states and territories incorporated industrial decarbonization measures in the Priority Climate Action Plans (PCAPs) released last year. PCAPs offer valuable insights into how states are approaching climate action, serving as a critical resource to guide progress during a time when federal leadership is lacking. This new analysis assesses the PCAPs as constructive starting points for discussing state industrial decarbonization efforts, offering a snapshot of how states are tackling the challenge of transitioning to clean industry. The report also highlights key opportunities for improvement, offering targeted recommendations to accelerate progress and advance the shift to a low-carbon future.
As industrial decarbonization emerges as the next frontier of climate action, it has attracted attention from advocates, technology providers, and policymakers. And as federal funding faces increasing disruptions, states have a critical opportunity to assume a leadership role. Recent technological advancements now enable substantial pollution reductions, while evolving market dynamics are presenting a case for businesses to reduce industrial pollution to remain competitive in the global market. More than two dozen states and Puerto Rico laid out plans to seize this moment to drive industrial decarbonization; their state climate plans are a vital starting point for ongoing planning and policy development to build a cleaner, more competitive American industrial sector.
Key findings include:
- Three-quarters of the state climate plans surveyed did not include measures targeting specific subsectors
- Roughly 1 in 6 industrial state climate plans measures did not include any specific policy recommendations
- Two-thirds of the states surveyed only mentioned federal funding sources in their industrial measures
- Only half of the surveyed state climate plans targeted toxic industrial co-pollutants for mitigation
- One in 5 states mentioned partnering with organized labor to advance economic and workforce development goals
The report outlines more than a dozen recommendations aimed at enhancing the effectiveness of existing plans and maximizing emissions reductions, all while fostering investment in local economies and communities. Key recommendations include matching decarbonization strategies to their appropriate state economic contexts and building relationships with industrial firms to both understand their constraints and to tailor solutions to the specific challenges of the state’s unique industrial landscape. States must be strategic in their policies, prioritizing cost-effective solutions that improve regional grid stability and maximizing the potential for decarbonization while being mindful of limited federal support.
In addition to emissions reductions, the recommendations emphasize the importance of leveraging the full range of co-benefits that industrial decarbonization offers. States should factor these co-benefits into their planning, including reducing toxic air and water pollution, enhancing workforce opportunities, and improving regional competitiveness. This approach also includes carrying forward initiatives like Justice40 and encouraging the creation of community benefit plans to ensure all communities, and particularly those historically disadvantaged, share in the positive outcomes.
“It’s incredibly promising to see so many states incorporating industrial decarbonization into their climate plans. These plans represent an exciting step forward—one that reflects a growing ambition and commitment by states to lead on climate,” said Trevor Dolan, Evergreen Action senior policy lead for industry and workforce. “Industrial emissions are a major public health threat, and these strategies will be critical for states to reduce toxic air pollution and provide much needed relief to overburdened communities. By continuing to expand on and strengthen these strategies, states can not only protect public health, but also lead America’s industrial decarbonizing efforts, positioning the country for global competitiveness. Together, we can unlock new solutions and accelerate industrial decarbonization for a prosperous, sustainable future.”
“Industrial decarbonization presents a massive opportunity for states to future-proof American manufacturing dominance while leading the clean energy transition,” said Molly Freed, RMI Senior Associate on the US Program. “After comprehensively reviewing 26 state industrial decarbonization plans, we’ve identified strategic recommendations to help states refine and enhance their existing efforts, providing cost-effective decarb solutions for industries spanning from steel mills to tortilla factories. Our guidance empowers states to drive economic growth, strengthen regional industries, and protect community health—serving as a blueprint for continued climate progress with states at the mantle.”
The full analysis can be found here.