The Industrial Internet of Things (IIoT) necessitates low-latency and ultra-reliable communication to support various applications. Besides, the data generated in IIoT must be geo-tagged to take location-aware timely actions. Therefore, this paper proposes an accurate and energy-efficient localization scheme for localizing the devices in IIoT. We introduce a novel anchor activation protocol for the non-cooperative localization of IIoT devices. The proposed method is sequential, distributed, and error adaptive, that first performs distributed scheduling followed by adaptive selection. This distributed localization scheme is well-suited for IIoT due to the non-cooperative nature of the devices; however, at the same time, it is more challenging because no centralized node can disseminate the anchors’ network information. Therefore, the anchors rely only on the local information from other anchors in their vicinity. The distributed approach can significantly benefit such networks because the centralized node can be a system’s bottleneck. Besides the distributed nature, the decision process of anchor selection for localization considers the transmission energy of the anchors to make it energy efficient. Our results show the effectiveness of the proposed method both in terms of localization accuracy and energy efficiency.