ACEEE | American Council for an Energy-Efficient Economy
Apr 29, 2024
Decarbonize and Defossilize: Transformative Policies to Reduce Chemical Industry Carbon Emissions
The chemical manufacturing sector is the largest and most complex portion of the U.S. industrial ecosystem and is responsible for more than 30% of U.S. industrial emissions. The chemical manufactur…
The chemical manufacturing sector is the largest and most complex portion of the U.S. industrial ecosystem and is responsible for more than 30% of U.S. industrial emissions. The chemical manufacturing sector is also the industrial sector for which the least progress has been made toward setting a path to zero carbon emissions by 2050.
The chemicals sector should form the foundation of domestic industrial decarbonization policy. This paper examines whether existing domestic federal policies are sufficient to make meaningful progress toward 1) shifting chemical feedstocks to non-fossil-fuel alternatives; 2) decarbonizing the chemical manufacturing processes (primarily process heat); and 3) shifting market demand toward sustainable chemical products.
We collected information on over 50 chemical decarbonization and defossilization programs across 9 federal agencies. Overall, the U.S. lacks a comprehensive and holistic strategy to address emissions from the chemical sector. We close with a discussion of potentially impactful policy levers, including shifting demand toward more sustainably manufactured chemical products and making it easier for firms to track indirect emissions up and down their value chains. Such levers could help meet U.S. emissions targets, especially when tailored to individual sectors that produce high-value, high-demand chemical products.
Toward Best Practices for Industrial Innovation: Lessons from the Department of Energy’s Industrial Demonstrations Program
This paper highlights a central lesson for policymakers: Industrial innovation requires alignment across government programs (grants, procurement), financing mechanisms (tax credits, loans), and institutional capacity. When these three are backed by sustained commitment from the public sector, private industry, and external stakeholders, the transition from demonstration to deployment becomes viable.
Bridging the Equity Gap for Utility Energy Efficiency Programs
Utility energy efficiency programs have increased investment in low-income households, but significant gaps remain. This report examines spending and savings trends across 48 major U.S. utilities, identifies barriers to expanding low-income programs and highlights policies and program strategies that can improve energy affordability and equitable access to efficiency upgrades.
This report identifies pathways for India’s cement industry to decarbonise at a pace compatible with the national climate goal of net-zero emissions by 2070.
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