Next Generation of US Policies for Industrial Innovation

The industrial sector is projected to be the highest emitting sector in the U.S. by 2030, accounting for 23% of greenhouse gas emissions (or 30% including electricity). While the Inflation Reduction Act, Bipartisan Infrastructure Law, and CHIPS and Science Act provided significant initial investment, the U.S. Department of Energy estimates that $700 billion to $1.1 trillion is needed to decarbonize the sector by 2050. This investment requirement is 5 to 10 times greater than the funding provided by the BIL and IRA, with 60% of necessary technologies still under development or not yet created. To address this gap, the document proposes a combination of tax credits, subsidies, and grants to reduce emissions intensity, demand-side levers to create markets for low-carbon products, and market-based mechanisms to disincentivize emissions-intensive processes.

• The U.S. industrial sector is projected to become the highest emitting sector by 2030 and currently accounts for 23% of U.S. greenhouse gas emissions, rising to 30% when electricity use is included.
• Decarbonizing the U.S. industrial sector by 2050 will require investments between $700 billion and $1.1 trillion, which is 5 to 10 times the amount provided by the Bipartisan Infrastructure Law and the Inflation Reduction Act.
• A significant technological gap exists for industrial decarbonization, as 60% of the required technologies are either still being developed or have not yet been developed.

APA

World Resources Institute (2024). Next Generation of US Policies for Industrial Innovation. https://www.wri.org/research/next-generation-us-policies-industrial-innovation

Chicago

World Resources Institute. Next Generation of US Policies for Industrial Innovation. 2024. https://www.wri.org/research/next-generation-us-policies-industrial-innovation.

Wikipedia

{{cite report |author=World Resources Institute |title=Next Generation of US Policies for Industrial Innovation |date=December 2024 |url=https://www.wri.org/research/next-generation-us-policies-industrial-innovation |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2024next, author = {{World Resources Institute}}, title = {{Next Generation of US Policies for Industrial Innovation}}, institution = {World Resources Institute}, year = {2024}, month = dec, url = {https://www.wri.org/research/next-generation-us-policies-industrial-innovation}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }