Sierra Club Analysis of Industrial Decarbonization & Clean Manufacturing Opportunities in the Build Back Better Act

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Adam Beitman, adam.beitman@sierraclub.org

Right now Democrats in Congress are looking for a path forward on securing a Clean Electricity Performance Program or NEW investments in other climate priorities to close the emissions gap, deliver on jobs and justice, and meet the President’s international climate goals in the coming days as the U.N climate negotiations near.

Sierra Club has pointed toward multiple priorities where climate action could be expanded in the bill, one of which is bold investments to cut industrial carbon pollution and boost manufacturing of clean energy goods. Below we outline the problems in the industrial sector and promising Build Back Better Act solutions. 

The Problem: High Industrial Pollution, Low Manufacturing of Clean Energy Goods

Industry accounts for 30% of U.S. climate pollution, which makes it the nation’s largest source of greenhouse gas emissions, according to the Environmental Protection Agency. That includes factories’ indirect emissions from electricity use and their direct emissions from fossil fuel use and chemical processes. What’s more, industrial emissions are projected to increase about 18% through mid-century. Without significant action to curb industrial pollution, these rising emissions would undercut climate progress in energy, transportation, and other sectors. 

Beyond greenhouse gases, many industries generate highly toxic pollution that causes diseases like cancer and respiratory illnesses in communities near the fenceline of industrial plants. Today, people who breathe in industrial pollution are more likely to die from COVID-19. Communities of color are more likely to suffer from industrial pollution and its health impacts, due to decades of environmental racism.

Meanwhile, the U.S. has a major shortage of manufacturing facilities to produce the electric vehicles, wind turbines, solar panels, and other clean energy goods that we need for the transition to a more just, 100% clean energy economy. Due to decades of unfair trade deals and underinvestment, the U.S. depends heavily on imports of clean energy goods from countries that have lower labor and environmental standards. As a result, we risk relying on imported solar panels made with forced labor or electric vehicles made with steel that is twice as climate-polluting as U.S.-manufactured steel. Meanwhile, U.S. workers risk losing out on the good manufacturing jobs that the clean energy transition offers, and clean energy businesses risk supply chain shortages that could hamper that transition. 

 

The Opportunity: Bold Investments in Clean Manufacturing 

Right now we have the opportunity to transform these threats by investing boldly in a new era of manufacturing that slashes industrial climate pollution, supports cleaner air, creates family-sustaining union jobs, and expedites the clean energy transition. With strong investments, we can retool the factories that produce our cement and steel to be among the cleanest in the world, while creating new high-paying factory jobs to sustainably produce the goods we need for 100% clean energy. 

Every $10 billion invested in industrial decarbonization would cut more than 30 million metric tons of climate pollution while also significantly reducing toxic air pollution. Meanwhile, each $10 billion invested in the manufacture of clean energy goods would create an estimated 100,000 good jobs

The Build Back Better Act has the potential to spur this manufacturing renewal. However, the current draft of the bill does not include robust investments to curb industrial pollution or spur manufacturing of clean energy technologies. Thankfully, a broad swath of union and environmental advocates are teaming up with congressional champions to change that. To meet our climate goals and advance economic and environmental justice, the Build Back Better Act should include grants, loans, and tax credits to: 

  • Expedite the adoption of existing technology to cut industrial pollution at cement, steel, and other energy-intensive factories; 

  • Advance the technological frontier by building first-in-class, low-emissions factories in energy-intensive industries; and  

  • Retool factories and build new ones to manufacture electric vehicles, wind turbines, solar panels, battery storage, and other clean energy technologies. 

Through bold investments in these priorities, Congress could usher in a new era of clean manufacturing that bolsters the health of fenceline communities, the wages of workers, and the odds of securing a livable climate. 

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.