China Is No Green Energy Darling

In one of his first actions as president, Joe Biden signed an executive order suspending new oil and gas leases on federal lands and reviewing existing operations.1 The alleged purpose was to restore balance to public lands operations and ensure the United States met its climate and clean energy goals.2 Nearly four years later, President Trump’s day-one executive order halted new renewable energy leasing on federal lands and waters to review “the questions in fact, law, and policy they raise.”3

The subjective and unilateral decision by the Biden administration and the seemingly retaliatory move by the Trump administration symbolize the fundamental problems with U.S. energy policy. Resource and technology biases, policy favoritism, and regulatory pendulums that swing with party changes in the administration create uncertainty and distort well-functioning energy markets.

Despite these policy warts, American companies are global leaders in energy production and world-class innovators. Although the order of importance may differ, policymakers across the political spectrum have shared goals: Increasing energy reliability and security, making environmental progress, and out-competing China.

Policymakers must be realistic about China on multiple fronts. China is no green energy darling. The country produces and consumes massive amounts of fossil fuels, particularly coal, without adequately deploying pollution control technologies. The country has a terrible environmental record and is by far the world’s largest carbon dioxide emitter.4 At the same time, China has strategically positioned itself to dominate clean energy markets by whatever means possible. Whether in solar photovoltaics, critical minerals processing, or nuclear energy, China has aggressively built out clean energy capabilities and is expanding investments worldwide. The PRC has also done a brilliant job at public relations, notably through its presence at the annual COP meeting, positioning itself as the planet’s green savior.

Increasing energy affordability and security, empowering American-led innovation, and outperforming China require durable policy reforms. These reforms should open markets, reduce barriers to technological progress, modernize regulations, and support private and public innovation pipelines. Unleashing the private sector to meet our energy needs and environmental ambitions will maintain and expand America’s economic and geopolitical leverage as an energy-dominant country.