The United States has announced an immediate end to federal investment in charcoal and other carbon-intensive projects overseas, as part of the Biden administration’s efforts to fight climate change and boost renewable energy.
The decision affects billions of dollars in annual financing as well as diplomatic and technical assistance, according to the Belga News Agency.
However, there are exceptions. These include interventions that threaten U.S. national interest, and investments required to broaden access to energy in vulnerable areas. The new policy also does not apply to existing projects, including those supported by previous U.S. governments.
This major U.S. policy swing could affect an important number of potential overseas projects, particularly the building of terminals in Eastern Europe and the Caribbean for stocking U.S. natural gas.
It shows that the administration of President Biden has made the fight against climate change one of its main priorities. However, it also creates opportunities for other players such as China, which is financing energy projects worldwide and doing so with huge financial injections that the United States is unable to match.
The U.S. Government’s policy change does not mean private U.S. companies will be actively prevented from investing in coal, oil and gas projects overseas, the Belga News Agency noted.