Arizona
The industrial sector is crucial to Arizona, with minerals and waste being the highest-emitting sectors. Petroleum and natural gas systems and semiconductor chip manufacturing also generate significant emissions. Industrial facilities are primarily concentrated in the Flagstaff, Phoenix, and Tucson areas. There is also a large cluster of industry in west-central Arizona. Higher emissions from cement plants account for most of the increase in Arizona’s industrial emissions over the past decade.

- The top 20 emitters are shown on this map, coded by industrial sector. The size of the circles corresponds to emissions: the larger the circle, the higher the emissions.
- Disadvantaged communities (as determined by the federal government) are shaded blue.

- The inner circle provides a visual representation of the share of emissions generated by each industrial sector.
- The outer circle also indicates the share of a sector’s emissions generated in disadvantaged communities.
STATE ENERGY POLICY:
Examining a state’s broader energy policy landscape is helpful when considering policies to support industrial innovation. Arizona does not currently have any greenhouse gas reduction targets, and its renewable portfolio standard, adopted in 2006, has targets for 2025. While these formal commitments are not prerequisites for innovative industrial policy, they can provide a supportive framework.
Streamlining permitting and establishing an efficient, transparent appeals process that engages local communities early, while providing clarity and assurances to project developers, are also key components of effective state energy policy. Discussing innovative industrial policy presents an opportunity for broader conversations about state energy policy, ensuring a mutually reinforcing strategy.
LEGISLATIVE context & opportunity:
The context below is not exhaustive and serves as an example of recent policies and programs, highlighting potential future opportunities. Please let us know if you are aware of additional efforts advancing industrial innovation in Arizona that we should highlight.
- Future 48 Workforce Accelerators create partnerships between community colleges and industry to offer job training in advanced manufacturing.
- Executive Order 2025-13 was signed by the Governor in 2025 to remove barriers to delivering affordable energy in Arizona. It established the Arizona Energy Promise Taskforce to produce several 2026 reports on topics relevant to industrial innovation, including a responsible policy framework for large energy users, a comprehensive energy strategy plan, and a strategic plan for generation and transmission corridors.
Explore recent legislation in Arizona and all 50 states by clicking on a specific year: 2025 legislation, 2024 legislation, 2023 legislation.
