States hold the key to industrial innovation

The document highlights the role of US states in decarbonizing heavy industry, specifically petroleum refining, chemicals, iron and steel, and cement manufacturing. It outlines various technology pathways—such as CCUS, electrification, and hydrogen—and provides a menu of state policy tools including financial support, demand stimulation, and permitting reform to drive investment and deployment.

• Four industrial subsectors—petroleum refining, chemicals manufacturing, iron and steel manufacturing, and cement manufacturing—are responsible for approximately 40 percent of industrial greenhouse gas emissions in the United States.
• Decarbonizing heavy industry requires sector-specific technology pathways; while energy and material efficiency are often economically viable, carbon capture and storage at cement plants and refineries face cost gaps. Other options include electric arc furnaces for steel, clean hydrogen-based steelmaking, and electrochemical cement production.
• States can drive industrial innovation through four primary policy categories: financial support (such as tax incentives and R&D funding), stimulating demand (via preferential bidding and contracts for difference), enabling action (through permitting reform and performance-based standards), and cross-cutting measures involving data, monitoring, and stakeholder engagement.

APA

Phillips, L. C., & Bailey, S. (2025). States hold the key to industrial innovation. Clean Air Task Force. https://www.catf.us/2025/10/states-hold-the-key-to-industrial-innovation/

Chicago

Phillips, Lindsay Cooper, and Sam Bailey. States hold the key to industrial innovation. Clean Air Task Force, 2025. https://www.catf.us/2025/10/states-hold-the-key-to-industrial-innovation/.

Wikipedia

{{cite report |last1=Phillips |first1=Lindsay Cooper |last2=Bailey |first2=Sam |title=States hold the key to industrial innovation |publisher=Clean Air Task Force |date=15 October 2025 |url=https://www.catf.us/2025/10/states-hold-the-key-to-industrial-innovation/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{phillips2025states, author = {Phillips, Lindsay Cooper and Bailey, Sam}, title = {{States hold the key to industrial innovation}}, institution = {Clean Air Task Force}, year = {2025}, month = oct, url = {https://www.catf.us/2025/10/states-hold-the-key-to-industrial-innovation/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }