As the United States gets cleaner, electrification has become the focus of climate policy. But a new report from the Energy Transitions Commission (ETC) and SYSTEMIQ makes one thing clear: even in a fully electrified economy, the world will still use carbon molecules. The challenge isn’t eliminating carbon entirely, but managing the carbon that’s left. So what’s the U.S. energy system doing to source, recycle, and store the carbon that’s unavoidable? Let’s look at states where the work is already underway. California, Texas, and New York are each taking different approaches that mirror the paths outlined in the ETC report.
What the Global Report Says
The ETC and SYSTEMIQ report describes a world where most of the world’s energy comes from electricity generated mostly from renewable sources. This could reduce global carbon demand dramatically, from over 11 gigatons today to 3 to 5 gigatons by 2050.
Even with that big reduction, some sectors will still need carbon-based fuels and materials. Aviation, chemical production, and parts of heavy industry can’t run entirely on electricity because some processes require physical carbon molecules. To address this, the report identifies four main areas of action: reduce the need for carbon through electrification and efficiency, recycle carbon that’s already in use, source carbon from sustainable biological material, and capture and store the carbon that’s left. In other words, we need to electrify everything we can and then manage the remaining carbon responsibly. For the US, with its diverse energy and industrial landscape, much of the work will depend on what individual states do. Some states are already moving forward in ways that show what this looks like.
California: Electrification Plus Early Carbon-Management Projects
California is a clear example of a state that’s pursuing electrification and carbon management at the same time. It’s been a leader in renewable energy and zero-emissions transportation for years and has recently expanded its focus to carbon management. The California Energy Commission has launched efforts to create carbon management hubs, which would coordinate infrastructure for capturing and storing emissions that can’t be eliminated yet.
Governor Gavin Newsom has signed legislation that supports carbon management projects, including improved permitting processes and incentives for developers. In Kern County, the California Resources Corporation is working on the state’s first commercial carbon capture and storage facility, Carbon TerraVault, which will store carbon dioxide deep underground.
California’s approach mirrors two of the ETC report’s main themes. It’s electrifying the energy system and creating an early framework for storing the carbon that’s left. It shows that a climate plan doesn’t have to choose between electrification and carbon management because both can move forward at the same time.
Texas: Building America’s Carbon-Storage and Clean-Energy Infrastructure
Texas, often associated with oil and gas, is becoming the country’s carbon management infrastructure hub. The state has already attracted over ten billion dollars in investments for carbon capture, utilization, and storage projects. These projects are supported by Texas’s geology, which is well-suited for long-term CO₂ storage and an existing industrial base that can support large-scale deployments.
Houston is positioning itself as the national and global hub for carbon management technology with many proposed storage sites, capture facilities, and CO₂ pipelines. Occidental Petroleum’s STRATOS direct air capture facility, one of the world’s largest of its kind, recently received major federal permits and is moving forward in West Texas. Applications for Class VI injection wells, required for permanent underground CO₂ storage, are increasing rapidly across the state.
Texas reflects another key part of the ETC report’s message. Even if carbon demand declines dramatically over the coming decades, the world will still need secure and large-scale facilities to manage unavoidable emissions. Few regions are better positioned to do that than Texas, and the state is clearly preparing to do so.
New York: Reducing Carbon Demand Through Electrification
New York is taking a different approach that focuses on reducing carbon demand through electrification. The state has become a national leader in heat pump adoption, which has surpassed gas furnaces in sales for several years. Building electrification is expanding rapidly across residential and commercial sectors. Distributed solar has grown to over six gigawatts, and electric vehicle registrations are over 270,000 across the state.
Through the New York State Energy Research and Development Authority (NYSERDA), New York has created programs to support emission reductions in both buildings and industry. The Commercial and Industrial Carbon Challenge provides funding for industrial decarbonization projects, low-carbon fuels, and electrified processes. Governor Kathy Hochul has also launched the Decarbonization Leadership Program to electrify and retrofit state-owned buildings.
New York’s approach shows the first step recommended by the ETC report. By electrifying buildings, improving efficiency, and reducing fossil fuel demand, the state is sharply reducing its need for carbon molecules before addressing those that remain.
Three States, Three Paths, One Emerging Model
California, Texas, and New York offer three different models for what a US carbon management strategy can look like. California is blending electrification with early proof-of-concept carbon storage projects. Texas is focusing on large-scale carbon infrastructure and long-term storage opportunities. New York is prioritizing beneficial electrification, especially in the building and transportation sectors, which reduces carbon demand directly.
Together, these examples suggest an emerging national blueprint. The United States can electrify fast, minimize its carbon need, recycle the carbon it already uses, and store what’s left in a safe and permanent way.
The ETC and SYSTEMIQ report says it clearly. A net-zero world will require electrification, but electricity alone will not be enough. The United States is already demonstrating parts of this transition through state actions. California, Texas, and New York each show how global recommendations can be translated into practical progress. As the US scales up its climate efforts in the coming years, pairing rapid electrification with responsible carbon management will be key. The roadmap exists, and the first steps are already visible. Now the country has to bring these efforts to a national scale.