Open system quantum dynamics can generate a variety of long-range entangled mixed states, yet it has been unclear in what sense they constitute phases of matter. To establish that two mixed states are in the same phase, as defined by their two-way connectivity via local quantum channels, we use the renormalization group (RG) and decoders of quantum error correcting codes. We introduce a real-space RG scheme for mixed states based on local channels which ideally preserve correlations with the complementary system, and we prove this is equivalent to the reversibility of the channel’s action. As an application, we demonstrate an exact RG flow of finite temperature toric code in two dimensions to infinite temperature, thus proving it is in the trivial phase. In contrast, for toric code subject to local dephasing, we establish a mixed-state toric code phase using local channels obtained by truncating an RG-type decoder and the minimum weight perfect matching decoder. We also discover a precise relation between mixed-state phase and decodability, by proving that local noise acting on toric code cannot destroy logical information without bringing the state out of the toric code phase. Published by the American Physical Society 2024