Policies to Accelerate the Transition to Clean and Competitive U.S. Industry

This briefing by Energy Innovation outlines policy options to reduce greenhouse gas emissions from the U.S. industrial sector, which is responsible for a quarter to a third of national emissions. The document proposes a combination of trade mechanisms, financial incentives, R&D support, and regulatory standards to accelerate the deployment of clean industrial technologies and maintain U.S. competitiveness.

• The U.S. industrial sector is a major source of greenhouse gas emissions, contributing 25% of total emissions directly, or 33% when including purchased electricity.
• To protect U.S. industries from overseas competitors with higher emissions, the document suggests implementing climate-aware trade mechanisms, such as a carbon border adjustment mechanism (CBAM) or expanding Section 232 steel tariffs.
• The briefing recommends several financial and regulatory tools to support clean technology, including green public procurement via the Buy Clean Initiative, emissions and energy efficiency standards, and 'feebates' that tax dirty equipment to fund rebates for clean technology.
• Current federal funding for industrial decarbonization includes approximately $6 billion through the Industrial Demonstrations Program and the Advanced Industrial Facilities Deployment Program, funded by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
• The document identifies gaps in current financial support, noting that the 48C Manufacturing Tax Credit rewards capital investment rather than clean production and is unavailable for most new facilities. It suggests a subsidy per ton of material produced without emissions or 'contracts for difference' to bridge cost gaps.

APA

Rissman, J. (2023). Policies to Accelerate the Transition to Clean and Competitive U.S. Industry. Energy Innovation. https://energyinnovation.org/wp-content/uploads/Policies-to-Accelerate-the-Transition-to-Clean-and-Competitive-U.S.-Industry.pdf

Chicago

Rissman, Jeffrey. Policies to Accelerate the Transition to Clean and Competitive U.S. Industry. Energy Innovation, 2023. https://energyinnovation.org/wp-content/uploads/Policies-to-Accelerate-the-Transition-to-Clean-and-Competitive-U.S.-Industry.pdf.

Wikipedia

{{cite report |last1=Rissman |first1=Jeffrey |title=Policies to Accelerate the Transition to Clean and Competitive U.S. Industry |publisher=Energy Innovation |date=April 2023 |url=https://energyinnovation.org/wp-content/uploads/Policies-to-Accelerate-the-Transition-to-Clean-and-Competitive-U.S.-Industry.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rissman2023policies, author = {Rissman, Jeffrey}, title = {{Policies to Accelerate the Transition to Clean and Competitive U.S. Industry}}, institution = {Energy Innovation}, year = {2023}, month = apr, url = {https://energyinnovation.org/wp-content/uploads/Policies-to-Accelerate-the-Transition-to-Clean-and-Competitive-U.S.-Industry.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }