The United States will immediately suspend federal investment in coal-fired power plants and other carbon-intensive projects abroad. That move by the Biden administration aims to combat climate change and accelerate the rise of renewable energy. The decision includes billions of dollars in annual financial and diplomatic and technical assistance.
There are a few more exceptions. For example, it is concerned about interventions when US national security is at risk. Investments may be needed to expand energy access to vulnerable areas. This policy does not apply to existing projects, including some projects supported by the United States under various governments.
However, the policy change could affect a significant number of foreign projects. It’s about building terminals that can store American natural gas in Eastern Europe and the Caribbean, among other things.
The move underscores how the Biden administration has made combating climate change one of its top priorities. However, the US withdrawal creates opportunities for China. The country is keen to finance energy projects around the world. It is happening with an amount of money that cannot be compensated by the United States. The withdrawal of the US government does not mean that if domestic companies start working abroad on coal, oil and gas projects, they will actively oppose it.
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