U.S. Energy Leadership to Require More Innovation and Competition
WASHINGTON, DC – The Climate Leadership Council released its latest report today, Powering the Future, which makes the economic, geopolitical, and climate case for a stronger government role in commercial diplomacy, international investment, and export strategy.
The report comes as the U.S.’s historic leadership in energy exports is being challenged by shifting market dynamics and increasing competition from state-backed enterprises. For example, China leads the world in manufacturing and exporting the advanced energy technologies that are powering a growing portion of global energy demand and out-exports the U.S. in advanced energy technologies to the fastest-growing, most energy-hungry markets by over 9-to-1. These are technologies that were largely pioneered by innovative American research institutions and private firms.
Maintaining a dominant position in the global energy landscape is indispensable to economic growth, national security, and geopolitical might. Luckily, the U.S. is armed with the most powerful innovation engine in the world: the American private sector. To incentivize innovation and better enable U.S. firms to compete, the U.S. government must confront headwinds to global leadership and help level the playing field.
“The U.S. has a legacy of global energy leadership to maintain and a reputation for generating transformative innovations,” said Catrina Rorke, a co-author of the report and executive director of the Council’s Center for Climate & Trade. “American innovators are currently developing the next generation of advanced energy technologies, but only with the right federal export and investment tools in place can they truly compete globally and deliver on the economic, security, and climate benefits that are up for grabs.”
A range of federal agencies—including the Department of State, the U.S. International Development Finance Corporation (DFC), the Export-Import Bank of the United States (EXIM), among many others—advance commercial diplomacy, mobilize investment, and accelerate exports. Currently, they lack the tools, flexibility, and coordination to be fully empowered. Powering the Future identifies that a well-coordinated, whole-of-government international investment and export strategy would grant access to global markets, secure important supply chains, and unlock the development and deployment of reliable, affordable, and clean energy solutions.
“It is imperative that the U.S. fosters innovation and competition to develop and export advanced energy technologies. Not only will these efforts bolster the American economy and our national security, but they will also lower global emissions,” said Dan Giamo, a co-author of the report and director, policy at the Climate Leadership Council.