Kentucky
Kentucky ranks 13th in the nation in industrial emissions. The highest emitting sectors include metals, minerals, refineries, and chemicals. Underground coal mines also represent a significant source of emissions. Chemical production is concentrated in the Catlettsburg, Louisville, and Paducah areas. Steel production takes place in northern Kentucky, near the Ohio River. The state’s sole refinery is on the West Virginia border in eastern Kentucky.

- 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:
Considering a state’s broader energy policy landscape is helpful when developing policies to support industrial innovation. Kentucky, through the Kentucky Climate Action Plan Council, set a recommended greenhouse gas emissions target in a 2011 report issued by the governor. Kentucky does not have an electricity portfolio standard or a clean heat standard. While these formal commitments are not necessarily prerequisites for advancing innovative industrial policy, they often create a supportive framework. In addition, the development of effective state energy policy requires several key components: streamlining permitting and establishing an efficient, transparent appeals process that engages local communities early while giving clarity and assurances to project developers. Discussions around innovative industrial policy present an opportunity for broader conversations about state energy policy to ensure a mutually reinforcing strategy.
STATE LEGISLATIVE context & opportunity:
Let us know if you are aware of additional legislation advancing industrial innovation in Kentucky that should be featured. The context below is not exhaustive and serves as an example of recent policies and programs, and where there may be future opportunities:
- Kentucky Enterprise Initiative Act (KEIA) refunds Kentucky sales and uses tax paid for building and construction materials permanently incorporated as an improvement to real property. Eligible businesses include manufacturing companies, alternative fuels, energy-efficient alternative fuels, renewable energy production companies, and carbon dioxide transmission pipelines. The Kentucky Economic Development Finance Authority provides various other financial assistance and tax credit programs that could support industrial modernization.
- A factsheet by the Renewable Thermal Collaborative identifies electrification of Kentucky’s pulp and paper, soybean oil, and plastic recycling subsectors as having the potential to reduce emissions significantly.
- Carbon management technologies are another opportunity to reduce industrial emissions in the state. Learn more about the economically feasible subsectors in Kentucky and facilities that qualify for the federal 45Q tax credit.
Explore recent legislation in Kentucky and all 50 states by clicking on a specific year: 2025 legislation, 2024 legislation, 2023 legislation.