Powering Progress: Industrial Decarbonization Planning at the State Level

This report by RMI and Evergreen analyzes industrial decarbonization strategies within 26 Priority Climate Action Plans (PCAPs) submitted by US states and Puerto Rico under the Climate Pollution Reduction Grants (CPRG) program. The analysis finds that while there is a general intention to reduce industrial emissions, state plans often lack the subsector specificity, long-term roadmapping, and cost-effective policy tools necessary for a successful transition. The authors recommend that states move away from a reliance on federal funding, adopt tailored strategies based on local industrial compositions, and better leverage co-benefits such as public health improvements, workforce development, and international competitiveness.

• State industrial decarbonization plans generally lack specificity regarding industrial subsectors and tailored strategies. Only 27 percent of the reviewed industrial measures identified a specific subsector, with most relying on general terms like "energy efficiency," which the authors argue must be implemented on a facility-by-facility basis.
• There is a significant imbalance in the types of policy tools states are prioritizing, with a heavy lean toward high-cost measures. Nearly 50 percent of specified policies focus on high-cost options such as capital investment grants and uncapped tax credits, while few focus on low-cost, high-impact tools like financing for low-carbon equipment.
• State plans are overly dependent on federal funding, which the report warns is an unstable foundation. Only nine states referenced non-federal funding sources, and only seven included estimated budgets, leaving plans vulnerable as federal climate programs are frozen or rolled back.
• States are underutilizing regulatory and standards-based policies to drive emissions reductions. The report highlights Colorado's GEMM 1 and 2 rules, which mandate a 20 percent reduction in industrial emissions by 2030 compared to 2015 levels, as a model for combining regulation with financial support.
• Most state plans fail to adequately address the co-benefits of industrial decarbonization, particularly regarding public health and labor. Only half of the studied PCAPs identify potential co-pollutant reductions (such as NOx and PM2.5), and less than a third mention job impacts.
• American industrial competitiveness is at risk due to international pressure and new trade barriers. The report notes that the European Union will implement tariffs on high-carbon imports via its carbon border adjustment mechanism, and China is rapidly decarbonizing its industry, making domestic emissions cuts a market imperative.

APA

RMI (2025). Powering Progress: Industrial Decarbonization Planning at the State Level. https://rmi.org/resources/powering-progress-industrial-decarbonization-planning-at-the-state-level/

Chicago

RMI. Powering Progress: Industrial Decarbonization Planning at the State Level. 2025. https://rmi.org/resources/powering-progress-industrial-decarbonization-planning-at-the-state-level/.

Wikipedia

{{cite report |author=RMI |title=Powering Progress: Industrial Decarbonization Planning at the State Level |date=25 March 2025 |url=https://rmi.org/resources/powering-progress-industrial-decarbonization-planning-at-the-state-level/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025powering, author = {{RMI}}, title = {{Powering Progress: Industrial Decarbonization Planning at the State Level}}, institution = {RMI}, year = {2025}, month = mar, url = {https://rmi.org/resources/powering-progress-industrial-decarbonization-planning-at-the-state-level/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }