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

The document argues that U.S. manufacturing is responsible for a quarter to a third of national greenhouse gas emissions and proposes a suite of policy interventions to transition to clean industry. Key recommendations include trade mechanisms like carbon border adjustments, green public procurement, direct financial support for early-stage technologies, and the implementation of emissions and energy efficiency standards. It emphasizes the need for a combination of R&D support, subsidies for clean production, and improved lending mechanisms to ensure U.S. industry remains competitive against international producers while achieving decarbonization.

• U.S. manufacturing is a major source of emissions, accounting for 25% of greenhouse gas emissions directly, or 33% when including purchased electricity.
• Trade mechanisms such as a carbon border adjustment mechanism (CBAM) or Section 232 steel tariffs could protect U.S. industries from 'dirty producers' in countries like China, India, and Russia, while facilitating trade with allies in Canada, Japan, South Korea, and Europe.
• The document proposes several financial and regulatory tools to support clean technology: R&D partnerships, green public procurement via the Buy Clean Initiative, and the use of 'feebates' (combining equipment fees for dirty technology with rebates for clean technology).
• Current federal support, such as the 48C Manufacturing Tax Credit, is criticized for rewarding capital investment rather than clean production and for not being available to newly built facilities unless they meet specific criteria.
• There is a gap in affordable financing for small to medium manufacturers; while the DOE Loan Programs Office handles large projects, state-level green banks like the Connecticut Green Bank operate at smaller scales but lack federal-level resources.

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} }