This paper offers a brief insight into the potential impacts of introducing carbon pricing to the Midwest US. The region is relatively more carbon intensive than the average levels for the US because of the high dependency on coal and concentration of manufacturing industries. Carbon pricing may disproportionately affect Midwestern industries’ cost schedules in the short term. However, in the mid-long term, carbon pricing may present a real opportunity for the region to reverse the trend of declining manufacturing output and employment in traditional industries and transform the region into a leader in low carbon production and ‘green collar’ jobs.