Introduction

Climate change poses a significant challenge to industries worldwide. By 2035, factories producing various goods, including vehicles and chemicals, will become the largest source of greenhouse gas emissions in the United States.

In California, industry ranks as the second-highest emitting economic sector, contributing to almost a quarter of the state’s greenhouse gas emissions. While the power sector in California is relatively clean, achieving the net-zero emissions target set by the California Climate Crisis Act of 2022 heavily relies on addressing emissions from the industrial sector.

Government Policy for Clean Industrial Technologies

To achieve climate goals and promote sustainable development, ambitious government policies are necessary to deploy clean industrial technologies, incentivize innovative manufacturing, and create domestic markets for clean industrial products. California has already pioneered several forward-thinking policies in this regard, but further efforts can establish the state as a leader in clean industry and help achieve zero-carbon industrial operations.

  1. Setting Emission Standards for Industrial Equipment: The state Legislature should establish a date after which newly installed industrial equipment must produce no emissions from fossil fuel combustion, similar to California’s requirement for newly sold cars and light trucks to produce no emissions by 2035.
  2. Expanding Low-Emissions Infrastructure: Building on the Buy Clean California Act of 2017, which prioritizes low-emissions processes for steel, glass, and insulation in state infrastructure projects, the state Legislature should extend this program to include additional building materials like cement, concrete, and aluminum.
  3. Providing Low-Cost Financing: California should expand access to low-cost financing options to help manufacturers transition to clean processes. An industrial decarbonization program through the California Infrastructure and Economic Development Bank could provide incentives without worsening the budget deficit, as financing is repaid and can come from the private sector through credit enhancements or bond sales.
  4. Promoting Product Longevity and Quality: Policies such as right-to-repair and extended producer responsibility rules can improve product longevity and quality, reducing waste and facilitating a faster and more cost-effective transition to clean industry.

Deployment of Clean Industrial Technologies

Implementing the aforementioned steps would accelerate the deployment of green hydrogen, renewable electricity, energy and material efficiency, and electrified heating in the industrial sector. Various electrical technologies, including industrial heat pumps, electric resistance heaters, electric arcs, and electromagnetic induction, can provide the necessary heat for industrial processes, surpassing the temperatures achievable through fossil fuel combustion. If adopted nationwide, these technologies could significantly reduce carbon dioxide pollution in the United States, equivalent to removing millions of gasoline-powered cars from the roads or retiring numerous natural gas-fired power plants.

California as a Policy Trendsetter

California has a track record of setting policy trends. After enacting the Buy Clean law, six other states implemented their own clean procurement policies, and President Biden launched a federal Buy Clean initiative in 2021. California’s Building Standards Commission has also established emissions limits for manufacturing materials in large commercial and school buildings, becoming the first U.S. state to consider these “embodied” emissions in building codes.

Cap-and-Trade Policy and Industrial Facilities

California’s cap-and-trade policy applies carbon pricing to industrial facilities, distinguishing it from the approach used in 11 eastern states that only price power sector emissions. Oregon and Washington have subsequently implemented similar programs. This groundbreaking program offers significant benefits, including the prevention of deaths, asthma attacks, and lost workdays caused by industrial emissions. Investments in modern manufacturing technologies would also contribute to economic growth, while reducing pollution-related risks such as wildfires, droughts, and extreme weather events.

The Industrial Revolution for Sustainability

An industrial revolution is underway, transforming various sectors to operate sustainably. From steel fabricated without coal to beer brewed without natural gas and cement that sequesters carbon, California is at the forefront of this transformative change. This revolution has the potential to address the climate crisis and reshape manufacturing processes, ultimately contributing to sustainable prosperity.

About the Author

Jeffrey Rissman is the senior director of the industry program at Energy Innovation, a San Francisco-based nonpartisan energy and climate policy think tank. His new book is titled “Zero-Carbon Industry: Transformative Technologies and Policies to Achieve Sustainable Prosperity.”