How States Can Lead the Charge on Industrial Decarbonization

This briefing by RMI discusses the role of US states in industrial decarbonization, using a case study of Washington state to illustrate the potential for emissions reductions, the resulting increase in electricity demand, and the policy levers available to states to maintain industrial competitiveness.

• The industrial sector in the US accounted for nearly 25% of greenhouse gas emissions in 2022 and faces complex challenges because emissions are often high-temperature, process-based, and linked to legacy infrastructure.
• In Washington, an analysis of 'emissions-intensive, trade-exposed' (EITE) industries—which include approximately 40 facilities, with refineries contributing about 68% of EITE emissions—shows that existing and near-term technologies could reduce emissions across eight major sectors by 39% by 2035 and up to 91% by 2050.
• Implementing industrial decarbonization pathways in Washington would significantly increase electricity demand, requiring an estimated additional 13,975 GWh annually by 2050, which represents a 65% increase in industrial electricity demand.
• The marginal abatement cost for implementing decarbonization technologies in Washington ranges from -$150 to $500 per ton of CO2e reduced, with efficiency improvements providing the lowest or negative costs.
• States can accelerate industrial decarbonization through policy levers including updated standards and regulations, as well as state support focused on permitting, electricity rates, grid access, and direct financial supports such as green banks.

APA

RMI (2025). How States Can Lead the Charge on Industrial Decarbonization. https://rmi.org/resources/states-decarbonization-washington-industry/

Chicago

RMI. How States Can Lead the Charge on Industrial Decarbonization. 2025. https://rmi.org/resources/states-decarbonization-washington-industry/.

Wikipedia

{{cite report |author=RMI |title=How States Can Lead the Charge on Industrial Decarbonization |date=30 June 2025 |url=https://rmi.org/resources/states-decarbonization-washington-industry/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025how, author = {{RMI}}, title = {{How States Can Lead the Charge on Industrial Decarbonization}}, institution = {RMI}, year = {2025}, month = jun, url = {https://rmi.org/resources/states-decarbonization-washington-industry/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }