WASHINGTON (July 2, 2026) — The Progressive Policy Institute (PPI) this week released a new report, “Michigan’s Climate Goals at a Crossroads,” warning that the state’s 100% clean energy mandate is on a collision course with rising electricity demand and could jeopardize grid reliability and the state’s manufacturing base unless paired with firm, carbon-free power. Authored by Neel Brown, Managing Director at PPI, and John Kemp, an internationally recognized expert on energy markets and systems, the report calls on policymakers to shift from rigid fuel-mix mandates to a pragmatic, outcomes-based approach centered on emissions per capita.
Michigan’s Clean Energy Future Plan, signed into law in 2023, mandates 60% renewables by 2030 and 100% clean generation by 2040. But renewables currently supply just 7% to 11% of the state’s power, and the Midcontinent Independent System Operator (MISO) has warned of insufficient regional generation capacity as soon as 2028. Motor vehicle and parts manufacturing accounts for nearly two-fifths of Michigan’s GDP, making the state especially exposed to reliability disruptions or price spikes from premature retirement of firm gas generation.
The report finds Michigan has cut carbon emissions by two-thirds since 2005, faster than the national average, largely by switching from coal to natural gas. Per-capita emissions now sit at 14 metric tons, slightly below the U.S. average, and total energy spending per person is 11% below the national average. The planned 2026 restart of the Palisades nuclear power plant is expected to add 800 megawatts of firm, carbon-free generation, while the state’s EV mandate of 2 million vehicles by 2030 remains far out of reach, with just under 121,000 registered as of November 2025.
To sustain Michigan’s emissions progress without risking reliability or industrial competitiveness, the report recommends three priorities:
“Michigan has real climate progress to show for the last two decades, but holding onto mandates the grid cannot support is a recipe for blackouts, higher bills, and job losses,” said Brown. “The state has a legislative off-ramp available, and pragmatic policymakers should use it.”
Read and download the report here.
Founded in 1989, PPI is a catalyst for policy innovation and political reform based in Washington, D.C. Its mission is to create radically pragmatic ideas for moving America beyond ideological and partisan deadlock. Find an expert and learn more about PPI by visiting progressivepolicy.org. Follow us at @ppi.
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Media Contact: Ian O’Keefe – iokeefe@ppionline.org
