Michigan announces industrial decarbonization initiatives

Michigan has its sights on helping industries reduce greenhouse gas (GHG) emissions in line with the MI Healthy Climate Plan. Three new initiatives by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) will help set the course for 2026 and beyond. 

“After our power grid and transportation, buildings and industry are nearly tied as the top sources of Michigan’s greenhouse gas emissions,” said Alessandra Carreon, chief climate officer in EGLE’s Office of Climate and Energy (OCE). “The MI Healthy Climate Plan calls for bold innovation in manufacturing, and Michigan is answering that call. By pairing the development of an industrial decarbonization roadmap with direct input from manufacturers and enabling funding through the upcoming MI Healthy Climate Challenge, we are accelerating practical solutions that reduce emissions while strengthening Michigan’s manufacturing competitiveness.” 

Industrial Decarbonization Challenge: The MI Healthy Climate Challenge (MHC Challenge) is EGLE’s series of grant competitions driving clean energy deployment and unlocking additional investment across Michigan. Michigan’s next MHC Challenge will focus on industrial decarbonization and represent Michigan’s next step in powering industrial climate leadership. Details will be announced soon. 

Industrial Efficiency and Cost Savings Needs Assessment Survey: In preparation for the new MHC Challenge and to inform state policy development, the OCE is inviting feedback online through the Industrial Efficiency and Cost Savings Needs Assessment Survey. This survey includes open-ended opportunities to offer specific feedback on the grant program. It will inform statewide planning and program design related to energy efficiency, cost savings, operational improvements, and industrial decarbonization or sustainability initiatives.  

Feedback shared by March 31, 2026, will be considered in the development of the new MHC Challenge; feedback received later will continue to inform state policy development. 

Current and future MHC Challenge applicants are not required to participate in the survey. 

Updates will be posted on the MHC Challenge webpage. 

Industrial Decarbonization Roadmap: EGLE is partnering with 5 Lakes Energy to create a roadmap outlining Michigan's path to industrial decarbonization. The roadmap will lay out policy recommendations to reduce greenhouse gas emissions within Michigan industry while promoting economic growth and competitive manufacturing practices. As global demand for low-carbon production grows and Michigan pursues carbon neutrality by 2050, this roadmap will help identify the tools and resources industry needs to accelerate decarbonization. 

"We’re excited to work with EGLE to drive clean energy progress in the industrial sector,” said 5 Lakes Energy Lead Consultant Elizabeth Boatman. “Michigan manufacturers are already leaders in innovation, and many are already exploring ways to reduce emissions while remaining at the forefront of industry competitiveness. Our goal here is to identify the best path forward for Michigan industry that also delivers collective benefits across communities and businesses.” 

5 Lakes Energy is a Michigan-based consulting firm specializing in clean energy, climate policy, and utility regulation. The firm’s industry-focused experts will closely collaborate with the state, industry, and statewide partners on developing the roadmap. 

About the MI Healthy Climate Plan 

The MI Healthy Climate Plan outlines Michigan’s pathway to a healthy, prosperous 100% carbon-neutral economy by 2050. It includes several recommendations addressing industrial decarbonization, including calls for innovation hubs to help develop and deploy cleaner manufacturing technologies, plus incentives and technical assistance to advance energy efficiency and other process improvements.