A Carbon-Neutral Future for the U.S. Southwest


The Center for an Arizona Carbon-Neutral Economy pursues a bold vision: A thriving, resilient Arizona by 2050—advancing collaboration, innovation, and shared opportunity to realize a carbon-neutral economy that strengthens communities, enhances economic opportunity, and supports enduring prosperity. 

We support cross-sector efforts that draw on Arizona’s regional strengths—including world-class solar resources, a growing manufacturing base, leading research institutions, and strong community leadership—to enhance long-term prosperity and resilience.

AzCaNE convenes Arizona’s public, private, Tribal, academic, and community collaborators, providing transparent analysis that helps assess and identify opportunities that contribute to long-term prosperity and resilience.

State of Arizona flag on billboard

Treasury’s Rules for the Clean Hydrogen Production Tax Credit 45V

As the U.S. advances its clean energy transition, hydrogen is emerging as a critical solution for reducing carbon emissions in hard-to-abate industries. The new Clean Hydrogen Production Tax Credit (45V) is designed to accelerate this shift by making low-carbon hydrogen more competitive.

This paper explores Treasury’s revised rules for the credit and outlines how producers, policymakers, and stakeholders can respond. It provides insights into the opportunities and challenges of these rules from multiple perspectives—environmental, economic, security, and social—while offering a framework for how stakeholders can adapt strategies to ensure both compliance and industry growth.

An addendum provides the latest updates to federal guidance, supporting stakeholders with timely, practical direction as they navigate the complexities of building a clean hydrogen economy.

Latest News Highlights

Landmark deal to cut global shipping emissions in tatters after US pressure

October 17, 2025 A landmark global deal to cut shipping emissions has fallen apart after the US and Saudi Arabia blocked its final approval in London. The agreement would have made shipping the first industry with mandatory global targets for cleaner fuels, but threats of tariffs from the Trump administration derailed it, leaving climate advocates warning of a major setback for global decarbonization efforts.

Governor Katie Hobbs Acts to Cut Red Tape, Unleash Arizona Energy, and Lower Energy Costs

September 15, 2025 Governor Katie Hobbs signed Executive Order 2025-13 to streamline energy infrastructure development, reduce costs, and expand Arizona’s clean energy economy. The order creates the Arizona Energy Promise Taskforce to accelerate projects, support affordability studies, and help Tribes advance energy sovereignty amid rising demand and federal policy changes.

Arizona utilities sign up for gas pipeline project, spurred by data center development

August 7, 2025 Arizona Public Service and Salt River Project have agreed to buy capacity on Transwestern Pipeline’s new Desert Southwest expansion, which will deliver gas from Texas to Arizona. The $5.3 billion project aims to meet soaring electricity demand from data centers, as APS reports over 4.5 GW of committed large loads and expects power sales to rise up to 6% annually through 2027.

Horseshoe Bend in the Grand Canyon, Arizona

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