Great Lakes State’s green initiatives tick key boxes for site selectors.
The growing impact of climate change is driving businesses to reconsider where they are located, as extreme weather events and rising risks threaten operations and bottom lines. A recent national survey conducted by MIT Technology Review Insights in conjunction with the Michigan Economic Development Corporation (MEDC) found that out of the 300 U.S. executives that participated, 75% said their organizations have considered relocation due to climate risks, with 61% reporting disruptions to their operations and 55% experiencing damage to physical infrastructure.
As businesses face rising operational costs and increasing insurance premiums, many are now prioritizing climate resilience when selecting new sites, recognizing that their ability to withstand climate-related challenges is crucial for long-term success.
In light of these shifting priorities, many companies are looking to the Midwest for stability. Nearly half of the survey’s respondents cited the region as the least exposed to climate risks, making it an increasingly attractive destination for businesses seeking to safeguard their future.
Michigan, in particular, is attracting much attention for its strategic location and the bold steps state leaders have taken to prepare and protect its environment.
Photo: Getty Images
In 2022, Gov. Gretchen Whitmer launched the MI Healthy Climate Plan, charting a comprehensive path to help the state achieve 100% carbon neutrality by 2050; clean energy legislation signed by the governor in 2023 moved the state’s clean energy standard goals up to 2040. To achieve this, the main goals of the initiative center on expanding clean energy production and usage, reducing greenhouse gas emissions, and building sustainable infrastructure and practices.
“Climate change is causing more extreme weather events and raising risks for business right now,” said Kara Cook, the State of Michigan’s former chief climate and energy strategist, in September 2024. “Here in Michigan, we’re facing climate change head-on with investments to build up our water infrastructure, produce more clean, reliable energy, enhance our grid resilience, and more. As national leaders in climate action, we are continually finding new ways to make our businesses and communities more prepared for climate events while growing our clean energy economy.”
“Here in Michigan, we’re facing climate change head on with investments to build up our water infrastructure, produce more clean, reliable energy, enhance our grid resilience, and more. As national leaders in climate action, we are continually finding new ways to make our businesses and communities more prepared for climate events while growing our clean energy economy.”
— Kara Cook, the State of Michigan’s former chief climate and energy strategist, in September 2024
Incentives That Excite
Michigan’s proactive approach to combating climate change makes it an increasingly attractive destination for expanding companies. As 71% of survey participants consider the availability of climate-planning resources to be one of their top criteria when evaluating potential new business locations, Michigan’s various green initiatives set it apart from the competition.
Michigan is No. 1 in the nation for Inflation Reduction Act projects and has received nearly $1.5 billion of semiconductor and electronics manufacturing investments through the CHIPS Act and IRA funding since they were signed in 2022.
Companies in Michigan benefit from advantageous incentives such as the Renewable Energy Credit (REC) program. Through this program, companies that want to meet their renewable energy targets but may not be able to generate enough green energy on-site can pay a small incremental cost on their monthly bill to offset their energy consumption. This allows businesses to experience the benefits of renewable energy without investing in the infrastructure or capacity to generate it themselves.
Consumers Energy works with Michigan-based wind and solar facilities to fulfill the renewable energy credits to which its customers have subscribed. Each REC represents one megawatt-hour of renewable energy produced, typically from wind, solar, or other renewable sources.
To continue to grow resources for Michigan residents and businesses, state leaders created the Michigan Climate Investment Accelerator in 2024, a program designed to give more families and businesses access to financing for clean energy technologies, create good-paying jobs, lower energy costs, and support the implementation of the MI Healthy Climate Plan.
The Accelerator will help community lenders like community development finance institutions (CDFI), credit unions, and green banks across the state secure funding from the Greenhouse Gas Reduction Fund (GGRF), created by the U.S. Environmental Protection Agency (EPA) through the Inflation Reduction Act.
The Accelerator includes two strategies to attract both federal and private investment. The first is the Michigan Climate Investment Fund (MCIF), an $11 million initiative to break down barriers to serving low-income communities. It provides targeted grants to Michigan-based community lenders who successfully apply for support through the GGRF. This fund will offer $10 million in matching grants for community lenders and $1 million in technical assistance to help build the capacity of these lenders to apply for the GGRF.
The second strategy is the Michigan Climate Investment Hub, created with philanthropic support from The Kresge Foundation. Located in Newlab at Michigan Central in Detroit, the Hub is a dedicated space for the State of Michigan, national GGRF awardees, and Michigan- and Detroit-based stakeholders in clean energy development and financing. It provides a collaborative environment where these groups can work together and host educational events to increase green lending across the state. These initiatives are poised to establish Michigan as a prime location for GGRF investments and will encourage the development of investment-ready projects.
Photo courtesy of MEDC
Powering Up the Job Market
As these climate initiatives gain momentum, their economic impact is already felt across the state. Michigan’s clean energy sector is not only helping companies lower their carbon footprint and operational costs, but it’s also driving significant job creation statewide.
Investments in renewable energy, hydrogen innovation, electric vehicle (EV) manufacturing, and sustainable infrastructure have rapidly expanded Michigan’s clean energy workforce. According to the 2024 Clean Jobs America Report from E2, based on an analysis of the U.S. Department of Energy’s 2024 Energy and Employment Report (USEER), Michigan boasts nearly 128,000 clean energy jobs, outpacing 44 states’ job numbers, with clean energy jobs continuing to grow nearly twice as fast as economy-wide employment.
To support and sustain this growth, Michigan has implemented critical legislative and funding measures. In 2023, the state passed Senate Bill 519, which created the Community and Worker Economic Transition Office. This office is focused on supporting workers and communities transitioning from fossil fuels to renewable energy. By offering workforce retraining programs and helping diversify local economies, the office ensures that Michigan’s workforce remains prepared and isn’t left behind during this transition.
Additionally, Michigan secured $35.7 million in federal funding from the Inflation Reduction Act in 2024 to expand job training and apprenticeship programs. These initiatives are designed to equip Michiganders with the skills necessary to excel in the clean energy sector, including EV manufacturing and renewable energy production.
With these efforts, Michigan is advancing its clean energy goals and ensuring its workforce is ready to meet the demands of a rapidly evolving industry. As more companies look to mitigate climate-related risks, Michigan offers a clear advantage — a thriving green economy, a growing clean energy workforce, and a supportive environment for businesses to flourish sustainably.
