New Mexico
Refineries and petroleum and natural gas systems account for more than three-quarters of emissions from large industrial facilities in New Mexico. Landfills and mineral production are also significant sources of industrial emissions. The southeastern and northwestern regions of the state are centers of oil and gas extraction. Mineral production is centered in the greater Albuquerque area.

- 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. New Jersey established statutory and executive greenhouse gas emissions reduction targets in 2007 (with additional interim targets set in 2021). The state also established a renewable portfolio standard in 2018 and committed to exploring a clean heat standard in 2023. 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 New Mexico that we should highlight.
- H.B. 458 was enacted in 2025 and addresses geologic storage of carbon dioxide, specifically when operators can request a certificate of closure for a geologic sequestration site. It also creates the Geologic Carbon Dioxide Long-Term Storage Stewardship Fund, financed by a $0.10/metric ton fee on injected carbon dioxide.
- H.B. 538 was introduced in 2025 with bipartisan support but did not advance. This bill sought to create a production corporate income tax credit for facilities that reduced the net carbon dioxide equivalent emissions of the product produced to at least 40 percent below the industrial benchmark of a comparable product in the same product category.
- A factsheet by the Regional Carbon Capture Deployment Initiative describes how carbon capture can reduce industrial emissions in New Mexico, including economically feasible subsectors and facilities that qualify for the federal 45Q tax credit.
Explore recent legislation in New Mexico and all 50 states by clicking on a specific year: 2025 legislation, 2024 legislation, 2023 legislation.
