To meet the administration’s goal of achieving net-zero emissions by 2050, large and stable markets for cleaner goods must be created and cultivated. By leveraging its vast purchasing power, the federal government can foster such markets, spurring increased private investments that will drive further emissions reductions.

As DOE develops its demand-side strategy, it should view it as part of a holistic industrial strategy. Awards should reflect the value-added role of demand-side support for target sectors and technologies as part of a comprehensive strategy. We urge DOE—and other relevant agencies and offices—to publicly outline such a strategy after incorporating stakeholder input, building on DOE’s Industrial Decarbonization Roadmap. This holistic industrial strategy should specify the comparative advantage of the various Inflation Reduction Act, BIL, and other federal funding streams and incentives for achieving the goals of reduced industrial emissions and expanded clean technology manufacturing.

This strategy should explain how new demand measures, the Inflation Reduction Act, and BIL programs complement each other in achieving climate, jobs, and equity objectives.

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