Despite recent advances in policy and financial, technical, and regulatory support for low-carbon energy deployment in the United States, the pathway to deep decarbonization for core industrial sectors remains unclear. Federal and state efforts have created a favorable environment for clean energy development, but execution has been hindered by inflation, permitting delays, uncertain federal guidelines, and volatile energy demand trends. These challenges have been particularly problematic for industrial decarbonization, where key sectors are considered “hard to abate” using current low-carbon technologies.

This study, conducted with expert stakeholders, addresses how high-emitting industrial sectors, essential to the United States and global economy, can decarbonize using emerging and costly technologies in a potentially constrained fiscal environment ahead. Three key challenges were identified: uncertainty over policy consistency and the durability of incentives, a misalignment between the long timeframes required by investors and the shorter political cycles, and inconsistent price signals and demand generation for industrial decarbonization technologies.

As the first phase of a broader study, this analysis aims to identify the conditions necessary to accelerate industrial decarbonization, especially in light of new political leadership and a shifting fiscal landscape. While future reports will offer more detailed recommendations, four initial focus areas have emerged:

• Assessing the current emissions and carbon intensities of US industry.
• Promoting voluntary industrial standards.
• Leveraging clean electricity and fuel standards for stability and incentives.
• Developing a national carbon management strategy.

Fellow

David L. Goldwyn

Nonresident Senior Fellow

Adrienne Arsht Latin America Center Global Energy Center

Caribbean Climate Change & Climate Action

Fellow

Andrea Clabough

Nonresident Fellow

Global Energy Center

Climate Change & Climate Action Energy & Environment

EnergySource Jul 11, 2024

Chevron deference is dead—and US climate action hangs in the balance

By David L. Goldwyn, Andrea Clabough

The US Supreme Court’s seismic decision to overturn Chevron deference ends decades of federal agencies’ regulatory authority to interpret laws’ where there is ambiguity. While not specifically about climate or energy, the change is deeply consequential for the current—and next—administration’s ability to act on these issues according to its agenda.

Energy & Environment Energy Markets & Governance

Enabling net-zero solutions Dec 7, 2023

Partner perspective: Energy companies are essential to global climate solutions

By Mansoor Mohamed Al Hamed

The transformation of the energy system will happen with or without the oil and gas sector; Oil and gas companies must invest in low-carbon and renewables business outside their core operations.

Climate Change & Climate Action Energy Transitions

Report Jul 6, 2023

Technological and policy pathways to accelerate US industrial decarbonization

By Joseph Webster

Industrial decarbonization in the United States will be an important element in lowering global emissions. To limit the consequences of climate change, the United States must urgently advance a suite of efforts to guarantee the domestic and international industrial emissions reductions the world needs.

Americas Energy & Environment

The Global Energy Center develops and promotes pragmatic and nonpartisan policy solutions designed to advance global energy security, enhance economic opportunity, and accelerate pathways to net-zero emissions.

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Image: A petrochemical refinery is pictured. Christian Harb via Unsplash