The State Industrial Policy Playbook – A Policy Guide for Low-Emission Heavy Industry

Synapse collaborated with Clean Air Task Force (CATF) to conduct research and analysis to draft a comprehensive policy playbook that identified state-level strategies to modernize heavy industry and reduce emissions. CATF published the resulting report in October 2025 as The State Industrial Policy Playbook: A Policy Guide for Low-Emission Heavy Industry.

The playbook focuses on four critical subsectors: petroleum refining, chemical manufacturing, cement production, and iron and steel manufacturing. These industries collectively account for approximately 40 percent of U.S. industrial emissions, employ over 300,000 workers, and provide essential inputs to downstream sectors. The analysis shows how strategic state investments in clean industrial technologies can reverse decades of deindustrialization, create high-quality jobs, and strengthen national security by reducing reliance on volatile foreign energy and materials markets.

The research identifies six key technology pathways for industrial decarbonization, ranging from mature solutions like electric arc furnaces in steelmaking to emerging innovations such as electric kilns for cement and hydrogen-based steel production. Synapse’s analysis reveals that states possess a diverse toolkit to accelerate deployment, including:

Financial support: Tax credits, grants, and public-private partnerships to close cost gaps between clean and traditional industrial products
Demand-side policies: Environmental product declarations, procurement standards, and contracts for difference to create reliable markets for low-carbon materials
Streamlined regulations and improved standards: Siting and permitting reforms, performance-based material standards, and strengthened air pollution regulations to accelerate clean technologies

The report examines successful implementation through three detailed case studies, including Colorado’s emissions reduction policy portfolio for industry, Missouri’s federal-funded cement decarbonization initiative, and Louisiana’s comprehensive carbon capture legislative framework. The playbook demonstrates how states combining financial incentives, demand-side policies, and regulatory standards can accelerate economic and environmental benefits.

The final report is available here.