This chapter discusses the rationale for, and the design of, green industrial policy to decarbonize the basic materials industries. Green industrial policy plays a key role in addressing investment coordination challenges and supporting innovation and deployment of clean technologies. By targeting specific sectors or industries, green industrial policy complements general policy measures, such as carbon pricing, broad tax incentives for private R&D, and intellectual property rights (IPR) policies. The chapter emphasizes the critical need for establishing robust institutions that balance the risk of regulatory capture with the need to accurately identify and support appropriate technologies. Overall, the chapter shows the multifaceted nature of policy design and implementation in the pursuit of decarbonizing the basic materials industries.