Biden Administration Announces Green Measures for the Industrial Sector

The US President has announced a range of measures to reduce emissions from the industrial sector and enhance green manufacturing.

The administration says it is “supporting cleaner industry that can produce the next generation of products and materials for a net-zero economy.”

The measures include policy and trade approaches that will reward producers of low carbon products, especially in hard to abate sectors such as cement and steel and ensure that they are not disadvantaged by global producers of carbon intensive products.

It also offers funding to make technology such as Green Hydrogen (produced using a non-polluting energy source such as wind or solar) and Carbon Capture, Utilization and Storage (CCUS) more cost effective, scalable, and economic.

“The President’s Build Back Better agenda will further boost clean manufacturing and American competitiveness for decades to come, by supporting low-carbon processes across our industrial base; driving long-term investment in our clean steel, cement, and aluminum industries; and increasing domestic production of electric vehicles, wind turbines, solar panels, and more,” said the administration in a fact sheet about the policy.

Here are the main details you need to know:

Launch of “Buy Clean” Initiatives and Trade Policies – The federal government will make use of its own purchasing power to promote low-carbon, made in America materials. It is establishing a “Buy Clean Task Force” that will promote using more environmentally friendly construction materials.  It is also working the European Union to establish a set of trade-based rules that align with climate goals to keep out dirty products and reward producers of clean steel and aluminium.

Boost for Green Hydrogen – The administration has announced over $9 billion in investments and funding to promote green hydrogen use in the industrial sector. It is offering funding for R&D that will finds ways to make the fuel more economic (aiming to reduce the price of hydrogen by 80% in the next ten years), setting up regional green hydrogen hubs to supply industrial users, and funding R&D and engineering design in integrating green hydrogen into industrial processes.

New Guidelines for Use of Carbon Capture, Utilization and Storage Technology – The administration will be working to establish a clear set of guidelines to direct the deployment of carbon capture and storage technologies. These technologies are seen as a critical component of reducing emissions in the hard to abate sectors.

Finally, the administration is setting up several interdisciplinary groups and industry bodies to fund innovation and guide policy decisions in the future. It is also expanding its First Mover Coalition to cover not just steel, shipping, transportation, and aviation but also aluminum, cement, chemicals, and carbon removal. The Coalition is a group of 34 companies collectively valued at US $6 trillion that are committed to making clean purchases.  

This is the Biden administration’s first major carbon reduction initiative in the industrial sector. The administration has previously announced carbon emission reduction initiatives in energy and transportation.