Abstract <p>The article addresses the development of a locally adjustable policy for transitioning to best available technologies. The relevance of these issues stems from significant differences in the environmental and socio-economic conditions across Russian regions, which necessitate developing a flexible model of environmental industrial policy that more fully accounts for regional characteristics and is closely aligned with spatial development policy. To this end, using the thermal power industry as an example, the paper proposes an approach to accounting for regional differences in Russia during the transition to best available technologies (BAT) for air pollution control. The obtained estimates demonstrate a high spatial heterogeneity in the economic parameters of greening thermal power plants (TPP) in Russia. Consequently, implementing a “spatially neutral” policy of transition to BAT threatens the stability of socio-economic development in regions characterized by a large share of coal-based electricity generation. In this regard, recommendations are offered for improving the policy of transition to BAT in Russia’s thermal power industry by developing locally adjustable measures.</p>