Clean and Competitive: Opportunities for U.S. Manufacturing Leadership in the Global Low-Carbon Economy
Integrated national strategy needed to bolster U.S. clean manufacturing and avert climate change
By Peter Fox-Penner, David M. Hart, Henry Kelly, Ryan C. Murphy, Kurt Roth, Andre Sharon, Colin Cunliff
June 2021
The United States needs an integrated national strategy to address the twin challenges of bolstering its manufacturing sector and averting climate change. Timely federal RD&D and deployment policies targeted to specific manufacturing industries could create comparative advantage, expanding domestic investment and employment.
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Key Takeaways
- Sincere efforts to fulfill national pledges to achieve net-zero emissions will drive a nearly complete retooling of global manufacturing.
- This retooling gives the United States a chance to rebuild domestic manufacturing while converting to clean production. To seize it, the federal government must act strategically and forcefully to leverage the nation’s strength in innovation.
- Clean hydrogen production will become a core sector of the global low-carbon economy. Focused policies could enable significant domestic investment and job creation, both in the industry itself and in hydrogen-using industries like steelmaking.
- Next-generation heat pumps, novel drying technologies, and related innovations will be in high demand worldwide to cut emissions from buildings and low-temperature industrial processes. Smart, targeted policies could bring their production onshore.
- Clean chemical manufacturing will require innovations in recycling and bio-based production. A well-funded and coordinated national program could convert U.S. strengths in this industry into durable advantages and large rural investments.
- Biotechnology-based proteins could displace emissions from agriculture. The United States is a global leader in this emerging industry, and a robust federal policy could help secure that position.