Posted on April 5, 2025 by Nicholas McMurray
This op-ed was originally published by The National Interest on April 5, 2025. Click here to read the entire piece.
By upgrading its energy finance strategy through smart reforms and strategic investment, the United States can cement its role as the go-to energy partner for the future.
The global energy landscape is changing fast. Countries are scrambling to secure resources, invest in new technologies, and stay ahead in an increasingly competitive market. At the same time, U.S. oil and gas production is booming, artificial intelligence (AI) -driven electricity demand is surging and America remains heavily reliant on foreign critical minerals. Growing instability in key strategic regions and rising competition with China has increased the stakes for U.S. national security, economic strength and global partnerships.
America needs smart export and development financing policies to maintain global leadership. Agencies like the U.S. International Development Finance Corporation (DFC) and the Export-Import Bank of the U.S. (EXIM) are key tools for projecting American energy dominance and pushing back against China’s aggressive, state-funded energy expansion. With both agencies up for reauthorization this Congress, now is the time to modernize their mandates, cut red tape, and give them the support they need to secure U.S. energy leadership on the global stage.
Geopolitical Competition and Energy Security
Although the U.S. leads in key areas, competitors like China and Russia aren’t sitting still. China has invested nearly $1 trillion into clean energy projects annually while building ninety-four gigawatts of new coal capacity. Meanwhile, China and Russia dominate nuclear fuel and critical mineral supply chains, using predatory financing to lock in energy deals across emerging markets.
The U.S. can’t afford to let its competitors outmaneuver it. By modernizing key federal agencies, Washington can provide nations with competitive alternatives, securing America’s leadership in global energy for decades.
Strengthening U.S. Energy Leadership Through Strategic Financing
If the United States wants to stay ahead in global energy markets and compete with China’s massive state-backed investments, the administration needs to double down on promoting American commercial energy projects abroad. The DFC and EXIM are critical tools for backing American energy innovation and infrastructure, but bureaucracy and outdated policies make them less effective. Their upcoming reauthorizations offer prime opportunities to fix that.
Right now, the DFC makes money for the U.S. taxpayer but can only provide up to $1 billion in loans and only $60 billion in total, compared to China’s nearly unlimited state financing. Raising these caps would allow the United States to fund bigger projects, like nuclear plants and critical minerals infrastructure, that shape the future of energy. In addition, fixing how the federal government’s archaic budget rules affect the DFC is also necessary so it can fully use its resources to help American companies compete globally.bate sectors.
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