The United States to stop investing in fossils abroad

The United States to stop investing in fossils abroad

Photo: ANP

The United States will immediately halt federal investment in coal plants and other carbon-intensive projects abroad. The move by the Biden administration is aimed at combating climate change and accelerating the rise of renewable energy. The decision includes billions of dollars in annual funding and diplomatic and technical assistance.

There are still a few exceptions. This relates, for example, to interventions if the national security of the United States is at risk. Investments may also be required to expand access to energy in vulnerable areas. The policy also does not apply to existing projects, including some that the United States has supported under various governments.

However, a policy change can affect a large number of potential overseas projects. This relates, among other things, to the establishment of terminals in Eastern Europe and the Caribbean in which American natural gas can be stored.

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, for example. This country is eager to finance energy projects all over the world. This is happening with sums of money that the United States cannot match. The US government’s withdrawal does not mean that domestic companies will face active opposition if they start working abroad on coal, oil and gas projects.

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