Competitiveness, Constraints, & Coordination: A Strategy for Accelerating Energy Transition Investment in the Great Lakes

The Great Lakes region is positioned for an industrial renaissance in clean energy, having seen over $40 billion in new investments since 2021. However, the report argues that the region faces significant constraints, including slow population growth, a migration of manufacturing to the US South, and uneven clean electricity deployment. To overcome these, RMI suggests that states prioritize industries where they have existing 'economic complexity' and related capabilities, such as EV batteries and low-carbon steel. The report highlights the importance of coordinating across state lines to share legislative best practices—such as the creation of green banks and competitiveness funds—and recommends a regional investment attraction strategy to draw foreign direct investment. It specifically praises Illinois and Minnesota as leaders in environmental justice and workforce development frameworks.

• The Great Lakes region has experienced significant recent investment in the energy transition, with more than $40 billion in new investments since the start of 2021, primarily in batteries and electric vehicles (EVs).
• Most Great Lakes states lack a cohesive industrial strategy for priority energy transition sectors; for example, in EV battery manufacturing, only Michigan has strong strategic coordination, and only Minnesota has implemented demand-side mechanisms.
• Economic development incentives in the region often lack quantitative targeting and best-practice design, with many subsidies going to projects with low 'feasibility scores' relative to the national average, which may limit local productivity spillovers.
• The region faces a critical constraint in clean electricity deployment; as of 2021, only 10% of energy produced in the Great Lakes was renewable, the lowest share of renewable energy consumption in the US at 8%.
• Labor shortages are acute due to slow population growth and 'brain drain,' though some states are leading in response: Illinois has a clean energy jobs inventory, and Pennsylvania's Commonwealth Workforce Transformation Program reserves 3% of IRA and IIJA funds for training.
• Illinois and Minnesota are identified as national leaders in environmental justice and equity, with Illinois's CEJA providing $40 million annually in grants for 'Equity Eligible Persons or Communities.'
• The region possesses a strong innovation ecosystem with over 350 energy-related research centers and high patent production per capita in sustainable fuels and EVs, particularly in cities like Columbus, Indiana and Ann Arbor, Michigan.
• State-level coordination is emerging through three legislative themes: removing local regulatory barriers to clean energy, establishing green banks to leverage the $27 billion Greenhouse Gas Reduction Fund, and creating competitiveness funds.
• Specific state initiatives to lower barriers include Michigan's Solar Energy Facilities Taxation Act (2023) and its $30 million Renewable-Ready Communities program, as well as Ohio's Payment in Lieu of Taxes program.
• Minnesota and Michigan have established competitiveness funds ($190 million and $350 million respectively) to provide matching grants and technical assistance for organizations accessing federal IRA, IIJA, and CHIPS funding.

APA

RMI (2023). Competitiveness, Constraints, & Coordination: A Strategy for Accelerating Energy Transition Investment in the Great Lakes. https://rmi.org/resources/a-strategy-for-accelerating-energy-transition-investment-in-the-great-lakes/

Chicago

RMI. Competitiveness, Constraints, & Coordination: A Strategy for Accelerating Energy Transition Investment in the Great Lakes. 2023. https://rmi.org/resources/a-strategy-for-accelerating-energy-transition-investment-in-the-great-lakes/.

Wikipedia

{{cite report |author=RMI |title=Competitiveness, Constraints, & Coordination: A Strategy for Accelerating Energy Transition Investment in the Great Lakes |date=26 September 2023 |url=https://rmi.org/resources/a-strategy-for-accelerating-energy-transition-investment-in-the-great-lakes/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023competitiveness, author = {{RMI}}, title = {{Competitiveness, Constraints, \& Coordination: A Strategy for Accelerating Energy Transition Investment in the Great Lakes}}, institution = {RMI}, year = {2023}, month = sep, url = {https://rmi.org/resources/a-strategy-for-accelerating-energy-transition-investment-in-the-great-lakes/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }