How States Can Lead the Charge on Industrial Decarbonization

The industrial sector accounts for nearly a quarter of US greenhouse gas emissions in 2022, characterized by process-based and high-temperature emissions. Using an analysis of Washington state, RMI demonstrates that emissions-intensive, trade-exposed (EITE) sectors—particularly refineries, which produce 68 percent of EITE emissions—could reduce emissions by 39 percent by 2035 and 91 percent by 2050. This transition would require an additional 13,975 GWh of annual electricity by 2050 in Washington, representing a 65 percent increase in industrial demand. To enable this, states must leverage tools such as grid access, permitting reform, and financial supports like green banks to complement federal incentives.

• In Washington, emissions from eight major emissions-intensive, trade-exposed (EITE) sectors—including refineries, pulp and paper, cement, glass production, food processing, chemicals and hydrogen, iron and steel, and electronics—could be reduced by 39 percent by 2035 and up to 91 percent by 2050. These reductions rely on energy and material efficiency and electrification initially, followed by carbon capture and low-carbon fuels like green hydrogen.
• The industrial sector in Washington is dominated by refineries, which are responsible for approximately 68 percent of the emissions from the state's emissions-intensive, trade-exposed (EITE) facilities.
• Implementing industrial decarbonization pathways in Washington would significantly increase electricity needs, requiring an estimated additional 13,975 GWh annually by 2050, which is a 65 percent increase in industrial electricity demand.
• The cost of implementing decarbonization technologies in Washington's EITE sectors varies, with marginal abatement costs ranging from -$150 to $500 per ton of CO2e reduced; efficiency improvements typically offer the lowest or negative costs.
• States can accelerate industrial decarbonization through specific policy levers, including updated standards, regulations, grid access, permitting, electricity rates, 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} }