A Clear Path for Geothermal Permitting: Cutting Delays, Driving Deployment

Energy Dominance Financing 101: Accelerating American Innovation

From Vision to Reality: The U.S. Fusion Imperative

Fusion energy, generated by combining atoms like hydrogen, has the potential to supply enormous amounts of clean energy. Decades of research have brought this technology to the precipice of first-of-a-kind commercial deployment. Today, there are 45 fusion energy companies in the United States, and several of them are aiming to build a commercially viable fusion power plant between 2030 and 2035. If America leads the way in deploying this technology, we could establish a new manufacturing industry, new long-term energy partnerships and trade agreements, and a foundation for global energy dominance.

Without investments in public-private partnerships and a resilient domestic supply chain, America risks ceding leadership to its foreign adversaries. China is investing at least $1.5 billion annually in fusion, although some reports suggest significantly more, and already possesses robust supply chains for power electronics, forged parts and the advanced materials necessary to commercialize this technology. Similarly, allied nations like Germany and the UK are also investing huge sums, with Germany investing over $2 billion by 2029 and the UK investing around $3 billion over the next five years.

The Commission on the Scaling of Fusion Energy (CSFE), led by Senators Jim Risch (R-ID) and Maria Cantwell (D-WA), and Ylli Bajraktari, the President of the Special Competitive Studies Project, published a report that lays out a plan to ensure the United States acts with purpose to capitalize on this technology. The CSFE report outlines a list of three strategic actions the U.S needs to win the fusion race:

The DOE Office of Science released its Fusion Science & Technology Roadmap, which sets a national strategy to accelerate the deployment of commercial fusion power by the mid-2030s. The roadmap outlines three core pillars that are essential to American fusion success:

In November 2025, the DOE released its new organizational structure, which includes a standalone Office of Fusion Energy, reporting to the Under Secretary for Science. Together, these announcements reflect a growing sense of urgency amongst both Congress and the Trump Administration to deliver fusion power to the grid within the next decade and secure enduring U.S. leadership in this emerging industry.

The U.S. is Moving Fast…

Today, companies are already proving that commercialization is no longer speculative. Among the many industry accomplishments, Commonwealth Fusion Systems (CFS) is building its SPARC (by 2027) and ARC (by the early 2030s) power plants using advanced superconducting magnets. Helion Energy raised $425 million in 2025 and, in partnership with Microsoft, is constructing a commercial fusion plant in Washington state, which aims to enter operation by 2028. In February, Type One Energy signed a cooperative agreement with the Tennessee Valley Authority to initiate fusion deployment. Serious investors and tech companies are placing very real bets on this technology.

Recent Notable Investments into the Fusion Sector

Source: Fusion Industry Association, “The global fusion industry in 2025“

…But China is Catching Up

China invested $1.5 billion in fusion last year, nearly double U.S. funding of $800 million. Additionally, state-owned enterprises have been investing heavily in fusion supply chains to ensure a swift path to commercialization. As part of this initiative, in July 2025, China established a new state-owned fusion company known as the China Fusion Energy Co. (CFEC) to accelerate commercialization. Since its genesis, CFEC has registered $2.1 billion in raised capital. This new company is just one example of China’s commercialization efforts to complement its scientific advances at its two main fusion enterprises, the Institute of Plasma Physics and the Hefei Institute of Physical Science. In contrast, despite private industry momentum, the U.S. fusion industry currently lacks the supply chains and infrastructure required to sustain a full commercial buildout. 

America’s Moment to Lead

Energy drives all human prosperity, which is why the Trump Administration has made American energy dominance a core policy priority. America now faces an opportunity to commercialize an entirely new source of energy. This moment is a rare opportunity for America to dominate an entirely new energy technology, building energy security and supporting reindustrialization. The private sector is ready, but it cannot outcompete state-backed corporations alone. The Trump Administration laid out a roadmap for U.S. leadership in fusion; now it’s time to capitalize and win.

 

Time to Fix America’s Permitting Problems and Let America Build

America’s permitting system is not just slow and costly; it is a threat to our economic and energy security. Long delays, unpredictable reviews and escalating costs create investment uncertainty and lost opportunities. Projects across sectors take an average of four to five years to move through the permitting system, and delays cost $100-140 billion a year in the form of jobs, revenue and capital returns. We cannot meet rising energy demand and compete globally with a system that stands in the way of progress. 

If the U.S. is to lead in the AI-driven future, catalyze American manufacturing and keep energy costs low, we need to build more of everything and strengthen the energy system to deliver affordable, reliable and secure power.

Weighted Average Permitting Time for Projects Varies by Sector

Source: BLM NEPA National Register; Breakthrough Institute; Columbia University; USFS NEPA Database; Council on Environmental Quality; EIS Length Database; Federal Permitting Dashboard; Federal Permitting Improvement Steering Council: Baseline Performance Schedules; Federal Register: Section 404 Permits; Government Accountability Office; Federal Energy Regulatory Commission; NOAA: EFH Consultation; PNAS; Stanford University; University of Utah; McKinsey & Company

The 119th Congress has an opportunity to deliver bipartisan permitting reform that will let America build. Here are four solutions:

1. Modernize NEPA

Building in America should always require careful consideration of a project’s impacts on the environment. The National Environmental Policy Act (NEPA) was signed into law in 1970 to ensure this is done and needs to be updated to meet today’s energy realities. NEPA is a procedural statute to inform decision-making, not dictate outcomes. The May 2025 Seven County Supreme Court case reaffirmed this and importantly clarified both the scope and limits of agency discretion in the NEPA process. In the 2023 Fiscal Responsibility Act, Congress made a down payment to refocus NEPA reviews. It is time to build on those bipartisan NEPA reforms. 

Modernizing NEPA should:

2. Address NEPA Litigation

NEPA litigation rarely changes outcomes, but it does often delay or kill projects. A July 2025 Breakthrough Institute study found federal agencies win 74% of NEPA cases. By repeatedly filing lawsuits, project opponents aim to delay the process until developers run out of funding and abandon their projects. This chills investor confidence and can be a hurdle to building new energy assets like geothermal, hydropower, transmission lines and critical mineral enterprises. These lawsuits also drain federal agency resources, as agencies try to preempt lawsuits by making their documentation “litigation proof.” To increase predictability and halt harmful delay tactics, we need to reform NEPA judicial review and litigation practices. 

Reforming NEPA judicial review and litigation practices will:

In addition to addressing NEPA, Congress could further improve the permitting process by updating environmental regulations, like the Clean Water Act, and expanding categorical exclusions where appropriate. 

3. Increase Transparency

A modern permitting system should have public, real-time data on the status of environmental reviews and permits to increase certainty and transparency for all stakeholders. Today, missing, fragmented and outdated data makes navigating the permitting process harder for developers, agencies and the public. By increasing transparency, all stakeholders have better visibility into the process and drive efficiency.

Increasing transparency includes:

4. Fix the Grid

Fixing permitting alone is not enough. We must let American energy move. With demand for power increasing, we need to strengthen our grid and do it fast. To fix the grid, America should:

There are bills in Congress that capture many of the ideas described above and that can help us meet the challenges we face. These bills include:

It’s time to let America build and let American energy move. With bipartisan reforms, Congress can design a permitting system that meets the scale of the challenge, and advances U.S. leadership in energy, manufacturing and innovation.

 

USMCA Turns Five: Securing America’s Energy and Economic Edge

When the first Trump Administration negotiated the United States-Mexico-Canada Agreement (USMCA) in 2018, it rebuilt the foundation of North American competitiveness. The USMCA created a market-driven framework that protects American workers, strengthens U.S. industries and gives our country a competitive edge over non-market economies such as China.

The USMCA is successful because it establishes regulatory transparency, the alignment of cross-border standards and the alleviation of trade barriers. This framework fostered a stable environment critical for cross-border investment, innovation and the development of American energy infrastructure. By locking in fair and predictable rules, the USMCA is designed to support America’s competitive strength, ensuring long-term energy and industrial leadership. 

Five years later, that framework continues to deliver measurable results for America’s economy, including the energy sector, which remains one of the most strategic sectors for long-term prosperity and security. In 2024 alone, U.S. energy trade with Canada and Mexico totaled nearly $208 billion, fueling millions of jobs and ensuring a stable source of reliable, affordable energy across the continent.

As Washington prepares for the USMCA’s first joint review, policymakers have an opportunity to preserve what works, build on its strengths and resist efforts to inject uncertainty into the most successful trade agreement in modern history.

North America’s Energy Defense Line

Energy security is central to America’s competitive advantage. The USMCA secured that advantage by creating a stable and predictable environment for cross-border investment and innovation.

Consider nuclear energy. While the USMCA does not include a dedicated chapter on nuclear energy, the U.S. nuclear sector benefits directly from the core principles of reducing trade barriers, improving regulatory transparency and aligning cross-border standards. These features create the foundation for advanced, high-value energy projects that sustain and expand high-paying American jobs in engineering, construction and manufacturing. A leading example is the partnership between GE Vernova Hitachi and Ontario Power Generation to build North America’s first grid-scale small modular reactor, the BWRX-300. American expertise and industry participation are central to the effort. The Tennessee Valley Authority and Lynchburg, Virginia-based BWXT are key contributors, with BWXT manufacturing the reactor vessel in the U.S.

Uranium mined in Canada is enriched and fabricated into fuel at U.S. facilities, supporting skilled labor and advanced manufacturing across the American supply chain. The same applies to critical minerals, which are essential to America’s energy and manufacturing strength. Canada and the U.S. are each other’s largest trading partners and have a reliable critical minerals supply chain that supports U.S. industry and jobs. By deepening cooperation through trade and investment, the U.S. can secure access to the materials that power advanced technologies, reduce exposure to geopolitical risks and strengthen domestic processing and manufacturing capacity.

The USMCA also provides a stable foundation for cross-border energy infrastructure, from oil and gas pipelines to electric transmission lines. Nearly 70 percent of U.S. crude oil imports originate from Canada and Mexico, ensuring steady feedstock for U.S. refineries that support higher-value American products, such as gasoline and diesel, for domestic use and export. This energy relationship contributes to over $688 billion in annual economic activity and supports nearly three million jobs across the U.S. Predictable cross-border trade and permitting frameworks are critical to maintaining this advantage.

Keeping North America Competitive in a Changing World

The USMCA’s architects understood that modern competition depends on clear standards, strong investment rules and the regulatory predictability that allows American innovators to lead. Several core principles in key chapters should be reaffirmed and, in some cases, expanded, such as:

Maintain American Leadership

The upcoming review is an opportunity to fine-tune a proven model. Several bipartisan ideas now circulating in Congress could strengthen the USMCA’s focus on energy and security, including the following.

The USMCA has proven that pro-growth trade and strong national security go hand in hand. By locking in fair, predictable rules with America’s regional neighbors, the U.S. has strengthened its energy and industrial leadership, supporting millions of high-quality jobs. As the joint review approaches, we encourage policymakers to remember what makes the USMCA work: it favors markets over mandates, innovation over regulation and America’s closest partners over China. ClearPath’s views are detailed further in our public comments for the U.S. Trade Representative’s USMCA review. Preserving and enhancing the USMCA will uphold American energy and manufacturing leadership, reminding the world that when North America is united, the U.S. wins. 

 

 

Driving American Innovation in the Highway Bill

As Congress looks to work on Surface Transportation reauthorization, the opportunities for innovation continue to grow. 

September 2026 marks the deadline to reauthorize the surface transportation titles that were included in the 2021 Infrastructure Investment and Jobs Act (IIJA). That means Congress must make key decisions about how to invest in the nation’s transportation infrastructure system, the connective tissue that promotes economic efficiency and national security.

This reauthorization comes at a time when it is important to consider a new element: the unprecedented construction needs of the AI infrastructure buildout.

The American Cement Association projects that, in addition to roads and bridges, data center construction will require an additional one million tons of cement by 2028, accounting for 25% of office-related cement spending. However, America faces a potential 50 million ton shortfall for essential materials in concrete production, known as supplementary cementitious materials (SCMs). This shortfall, in materials such as coal fly ash, is close to half of current SCM consumption; one of the reasons that reliance on cement imports has grown from 15% to 22% in five years. America’s import reliance may rise even further due to the data center buildout, unless local production and innovation ramp up.

 Fortunately, American manufacturers are innovating to help meet the current moment. In Minnesota, Amrize, the nation’s largest cement producer, collaborated with Meta to develop an AI-optimized concrete mixture, which sped up construction time. Brimstone, a cement start-up, has developed a novel method for producing ordinary Portland cement (OPC), the industry standard, utilizing abundant local materials. Brimstone’s technology also offers a clear path to scale up the domestic production of alumina, a key precursor for aluminum, and a source of supply chain vulnerability as the U.S. contains only one alumina refinery in a China-dominated supply chain. 

The adoption of this kind of innovation, however, sometimes faces bottlenecks with the largest buyers of these materials, state Departments of Transportation (DOT). The upcoming Highway Bill is a chance to change that by modernizing rules, rewarding innovation in cement, concrete and asphalt and giving states and industry the flexibility to invest in domestic materials production that is more affordable, durable and secure.

Opportunity #1: Drive state DOT innovation by accelerating the shift to performance specifications

State DOTs predominantly regulate the use of cement, concrete and asphalt in infrastructure projects by requiring producers to follow preset rules based on the type or chemical makeup of the material. These rules are also known as prescriptive specifications. A ClearPath-led study found that all 50 states have at least one type of prescriptive specification, blocking market access for use of innovative materials in state infrastructure projects that can improve performance and reduce costs. For example, a 2020 Texas DOT field study highlighted that shifting to performance specifications for asphalt could save roughly $80 million annually.

These specifications also have important spillover effects because state DOTs are often the largest buyers in a given market, and their standards often set the precedent that private buyers follow.

States can address this bottleneck by shifting to performance specifications that regulate material use based on engineering properties, rather than preset recipes based on chemistry. This can unlock market access for materials based on new technologies and chemistries that can perform at the same level, if not better, and enable producers to apply their technical know-how to tailor their products to a specific geography and application.

Opportunity #2: Scale-up manufacturing by providing advanced demand certainty

Bringing innovative materials to market at scale is challenging. The construction industry is a boom-and-bust sector, where materials are purchased for immediate use and delivery, making it difficult for material producers to demonstrate guaranteed demand and secure financing.

One way to de-risk manufacturing investment is to provide state DOTs, major procurers of cement, concrete and asphalt, with the flexibility to support innovative production, as the demand generated by state DOTs orders can scale-up manufacturing. This strategy has successfully commercialized manufacturing in other strategic sectors, such as NASA’s Commercial Orbital Transportation Services (COTS) program, which launched the commercial spaceflight industry.

Legislative proposals that could remove innovation roadblocks

Lawmakers in both chambers of Congress have been working on bipartisan legislation to boost cement, concrete and asphalt innovation: the Concrete and Asphalt Innovation Act (S.1067), co-sponsored by Sens. Thom Tillis (R-NC) and Chris Coons (D-DE), and its companion legislation, IMPACT Act 2.0 (H.R. 2122), co-sponsored by Reps. Max Miller (R-OH) and Valerie Foushee (D-NC).

Both pieces of legislation aim to solve the identified challenges. The bills establish a voluntary Federal Highway Administration (FHWA) grant program to provide states with technical assistance and financial reimbursement to shift to performance specifications. Shifting to performance specifications will require new tools and training, and the proposed program can help state DOTs manage the cost of the equipment purchases, training and field testing needed to use performance specifications safely. 

The bills also expand the list of eligible projects states can pursue under the Surface Transportation Block Grant (STBG) program. Through these proposals, state DOTs will be able to use STBG funds to:

With the STBG authority in place, state DOTs will be able to provide demand certainty, helping first-of-a-kind projects scale production. In addition, the bills establish contract guardrails, adapted from Department of War procurement best practices, to protect taxpayer dollars.

Boosting supply chain resilience, performance and cost-effectiveness

By eliminating bottlenecks in material specifications and establishing demand certainty, Congress could unleash American innovation to boost supply chain resilience, performance and cost-effectiveness and deliver the following benefits:

The Highway Bill reauthorization presents an opportunity for Congress to unleash American innovation in cement, concrete and asphalt production to deliver the next generation of high-performing, cost-effective and clean surface transportation infrastructure.

 

 

Driving Innovation: Building America’s Next Generation of Energy Leaders

In an age where clean energy innovation is more important than ever, America needs the next generation of energy leaders. ClearPath’s Conservative Leadership Program (CCLP) is dedicated to cultivating tomorrow’s clean energy leaders, equipping them to shape policy and innovation. ClearPath offers a variety of pathways for young professionals seeking hands-on experience in energy policy and advocacy. Through internships, internal fellowships and Congressional fellowships, participants gain real-world exposure to policymaking and clean energy innovation. Congressional fellows are placed in key conservative offices, committees and caucuses on Capitol Hill to support energy policy development, while internal fellows and interns contribute directly to ClearPath’s mission.

A key component of CCLP is to help emerging professionals gain first-hand experience, expand their energy education and broaden their network. “I’m proud to be part of CCLP, supporting the policy team at ClearPath, where I work directly on our permitting, critical minerals and geothermal policy priorities,” said Jackson Blackwell. “Having recently completed graduate school, where I focused on energy policy and international affairs, ClearPath is the perfect place for me to further hone my research and analytical skills. I am grateful for first-hand experiences to further inform my policy expertise.” These opportunities strengthen fellows’ abilities to analyze complex energy challenges and contribute to meaningful policy discussions. By combining professional hands-on experiences with practical engagement, ClearPath’s leadership program ensures that fellows are prepared to shape the future of clean energy policy.

The ClearPath fellows spent three days in Chicago learning about cutting-edge energy innovations while building a cohort amongst their peers. From touring Argonne National Laboratory, one of the world’s most advanced research facilities, to attending professional development sessions designed around career development and personal growth, the trip offered a unique education and professional development experience while strengthening the fellowship community. “Our trip to Chicago was a wonderful opportunity to get to know the other CCLP fellows,” said Clara Wheelock, a CCLP Congressional Fellow with the Senate Western Caucus. “Engaging in professional development seminars, touring Argonne National Lab and exploring the city alongside my cohort gave me the chance to hear about the work they are doing and learn about their interests. It was a refreshing experience that reinforced my dedication to my current work in the Senate and my excitement about the future of clean energy innovation.”

CCLP fellows with Argonne National Lab Director Paul Kearns (top) and the Aurora supercomputer (bottom).

The group’s tour of Argonne National Laboratory gave the fellows an opportunity to see innovation first-hand. They saw Argonne’s nuclear research facilities, exploring the Aurora supercomputer and visiting the Advanced Photon Source, a massive synchrotron light source that enables cutting-edge experiments in materials science, biology and energy technologies. Argonne researchers shared how the Advanced Photon Source is being used to accelerate breakthroughs in energy innovation, including battery storage, materials for nuclear reactors and advanced manufacturing. Fellows met with Director Paul Kearns, Jaclyn O’Day, Interim Director of Government Relations and leading scientists who discussed how national lab developments are inventing new technologies in computing, nuclear science and climate solutions. For many fellows, the visit offered a unique window into how world-class science intersects with innovation policy.

The group participated in multiple skill-building and professional development sessions. These sessions focused on fine-tuning practical skills in professional confidence, creativity and leadership. The workshops were creative and interactive, giving fellows the chance to practice presenting, work collaboratively on problem-solving exercises and bond with peers and mentors.

Looking Ahead

As clean energy becomes a major priority across America, CCLP is preparing the next generation of energy pioneers to address this issue. Through day-to-day work and talent-cultivating experiences like the Chicago retreat, ClearPath provides young professionals with exposure to world-class science, professional development and a growing cohort network. “What impressed me most throughout the retreat was how deeply engaged and thoughtful our fellows were. Whether it was exploring cutting-edge energy technology, reflecting on leadership through Lego Serious Play or simply supporting each other as peers, they demonstrated the curiosity and commitment that define the next generation of conservative clean energy leaders,” said Dana Faught, CCLP Director. From world-class laboratory visits and professional experiences to cohort-building activities, CCLP is more than a program – it’s a launchpad for America’s next generation of clean energy leaders.

For more information about CCLP click here.

 

Made in America: Leveraging the United States’ Energy Strengths

By 2040, U.S. electricity demand may rise by 35–50%, equivalent to adding roughly three Texas’ worth of demand to the grid. Meanwhile, China added 475 GW of new generation in 2024 alone. By comparison, the U.S. added 48 GW, barely one-tenth of China’s additions. To win the AI race and secure U.S. energy dominance, America must deploy more energy – faster and at a greater scale. Fortunately, American companies are seizing the opportunity.

For the fourth consecutive year, ClearPath partnered with the American Petroleum Institute (API) to showcase the advanced, next-generation energy technologies that are driving U.S. energy leadership. This year’s Carbon Innovation Forum underscored how America can leverage its innovation advantage to strengthen energy security, bolster manufacturing and maintain leadership in affordable, low-emissions energy.

The Carbon Innovation Forum convened senior government officials, energy executives, investors, project developers and thought leaders to discuss how the U.S. energy industry is innovating advanced energy technologies and resources – from enhanced geothermal and advanced nuclear to critical minerals and carbon capture and storage (CCS). Together, these innovations can deliver affordable, reliable, low-emissions energy, strengthen supply chains, create high-quality American jobs, and expand U.S. exports and global market influence.

American Energy Dominance

Jeremy Harrell, CEO, ClearPath moderates a fireside chat with Jarrod Agen, Executive Director, NEDC

Jarrod Agen, Executive Director of the National Energy Dominance Council (NEDC), kicked off the event and shared a central message to execute the Trump administration’s clear mandate: get shovels in the ground for projects that boost U.S. energy dominance and strengthen the grid.

Federal support for innovation and project development has already delivered landmark breakthroughs — like hydraulic fracturing — that transformed U.S. natural gas into a global export strength. Today, liquefied natural gas (LNG) is at the heart of the Administration’s energy dominance agenda. European allies have made their position clear — they want America’s lower-emissions LNG rather than Russian gas. In order to capture growing market demand, we need to unlock LNG exports and build supporting infrastructure, such as pipelines and export terminals. With LNG exports projected to grow nearly 10% annually through 2030, projects like Commonwealth LNG and Venture Global’s CP2 facility are central to the United States’ ability to supply allies and seize new market opportunities abroad.

Let America Build

If we want America to lead the world and develop more clean energy, developers must first have a clear path to obtaining permits.

Emily Domenech, Executive Director of FPISC, and Lisa Epifani, Head of Policy, ClearPath

Emily Domenech, Executive Director of the Federal Permitting Improvement Steering Council (“Permitting Council”), shared how the Permitting Council is doing exactly that. They are executing the Administration’s energy dominance strategy by overseeing and leveraging the FAST-41 process, which will accelerate approvals for critical projects such as the Alaska LNG pipeline and several critical mineral projects. For some mining projects, timelines that once stretched three to five years are being cut to about one year. The Permitting Council has also underscored a central point: when projects are built in America, they are built better with higher environmental standards. 

A Roadmap for Geothermal

What our innovation ecosystem has done for American natural gas, it must now do for next-generation energy technology and manufacturing. To maintain competitiveness and meet rising demand with American-made energy, we must modernize permitting, invest in critical infrastructure from pipelines to transmission, provide market certainty with predictable incentives and strengthen public-private partnerships that accelerate deployment.

Geothermal power illustrates this opportunity. Though it accounts for less than one percent of today’s grid, the National Renewable Energy Laboratory projects geothermal could provide up to 90 GW of electricity by 2050. With support from DOE’s Utah FORGE site, developers are refining drilling techniques, lowering upfront costs, and drawing private capital. Geothermal technology demonstrates the importance of the oil and gas workforce by leveraging the industry’s century of expertise — applying advanced drilling technologies, engineering know-how, and on-the-ground project experience to unlock this technology and get steel in the ground. The One Big Beautiful Bill also retained incentives for geothermal technologies, supporting the expansion of a reliable, clean, base-load power source.

Clean American Manufacturing

Ammonia represents another opportunity. As both a critical feedstock for fertilizer and an energy carrier, ammonia is central to global food and energy security. Today, China is the largest producer of ammonia, but with abundant natural gas resources, advanced CCUS capabilities, and a highly skilled workforce, America is well-positioned to lead in low-carbon ammonia production. Expanding this sector would not only strengthen supply chains but also create new U.S. manufacturing jobs and export opportunities.

As these technologies mature, supportive infrastructure will be essential. Midstream assets — pipelines for CO₂ and natural gas, transmission for electricity — will determine whether projects move from concept to commercial reality. Modernizing permitting will give developers the confidence to put steel in the ground and scale technologies.

Illustrative 2050 CO2 Pipeline Network

De-risking Private Investment

Financing will be just as critical as engineering and permitting breakthroughs. Durable, predictable policy gives investors the confidence to back long-term projects, and public-private partnerships, such as those supported by DOE’s Loan Programs Office, help de-risk deployment and move first-of-a-kind technologies into the market. Together, these tools ensure the U.S. stays ahead of global competitors and leads in bringing the next wave of low-carbon technologies to market.

America’s energy producers, technology innovators and investors are ready to move the capital needed to maintain the United States’ competitive edge in global energy markets. America’s energy leadership depends on matching our strengths with durable policy, streamlined permitting, and long-term certainty that attracts capital and ensures the world’s energy innovations are driven from here at home.

Thanks to our speakers: Jarrod Agen, Executive Director, National Energy Dominance Council; Emily Domenech, Executive Director, Federal Permitting Improvement Steering Council; Mike Adams, SVP & Managing Director, 8 Rivers; Vikrum Aiyer, Head of Global Public Policy, Heirloom; Lee Beck, SVP, Global Policy and Commercial Strategy, HIF Global; Kevin Book, Managing Director, ClearView Energy Partners; Ed Crooks, Vice Chair of Americas, Wood Mackenzie; Linda Dempsey, Vice President of Public Affairs, CF Industries; Gavin Dillingham, Executive Advisor, Federal Affairs, SLB; Ryan Edwards, Director of Climate Policy, Oxy; Lisa Epifani, Head of Policy, ClearPath; Cody Finke, CEO, Brimstone; Seán Gallagher, Head of Climate and Sustainability, Woodside; Jeremy Harrell, Chief Executive Officer, ClearPath; Matt Kolesar, Chief Environmental Scientist, ExxonMobil; Michael Johnson, Vice Chairman of Investment Banking, J.P. Morgan; Tim Latimer, Chief Executive Officer, Fervo Energy; Bala Nagarajan, Managing Director, S2G Investments; Hillary O’Brien, Managing Director of Policy, ClearPath; Scott O’Malia, Chief Executive Officer, ISDA; Aaron Padilla, Vice President of Corporate Policy, API; Derek Phelps, Head of Policy and Governmental Affairs, Twelve; Andrey Shuvalov, Vice President Energy Transition and Integration, Shell; Sasha Stashwick, Director of Federal Affairs, Antora; Alix Steel, Principal, DrivePath; Niels Versfeld, VP of Corporate Development, Carbon Clean; Tim Vail, CEO, ION Clean Energy; and Rebecca Winkel, Director, Climate & Sustainability Policy, API.

 

 

Energy Financing Power: America vs. China

Put Energy Security at the Center of U.S. Foreign Policy

American innovation drives energy security, a key factor in geopolitical influence. The U.S. can leverage its energy abundance by putting energy at the center of its foreign policy strategy, mutually benefiting America’s partners while reducing global emissions and advancing U.S. national interests. As Secretary of State Marco Rubio made clear, energy will be “at the forefront of foreign policy for the next 100 years.” To meet this moment, the U.S. must lean into its strengths and create a coordinated, agile and effective energy diplomacy and delivery system. 

One way to do so would be through the bipartisan creation of Energy Security Compacts (ESCs) that align American technical assistance and financing tools to strengthen the Trump Administration’s work in elevating energy security as a core pillar of U.S. foreign policy.

Scattered Goals, Strategic Costs

The American foreign policy apparatus has become enormously cluttered. Institutions from the U.S. Trade and Development Agency (USTDA) to the Export-Import Bank of the U.S. (EXIM) work hard for the American people, but disjointedly toward scattered goals. 

On the other hand, American adversaries are speeding ahead. The Chinese Belt and Road initiative, led by state-backed or outright-owned corporations, deploys large amounts of capital in a coordinated effort. In Brazil, for instance, the largest Latin American economy, China has invested more than $60 billion into the nation’s energy sector since 2015. The Chinese Communist Party now controls over 12 percent of Brazil’s energy infrastructure. Meanwhile, the U.S. government’s foreign investment institutions have supported less than $472 million, with one of the main projects being a streetlighting system. Worthwhile, but not transformative or strategic. 

While trying to out-subsidize China is unrealistic and economically unsound, the U.S. needs to leverage its strengths. Countries want to work with the American private sector, which is the largest and most innovative in the world, but U.S. companies are at a disadvantage. For example, Egypt wanted to select American nuclear technology for its El Dabaa power plant, but ultimately had to go with Russian technology. America is the preferred vendor for many countries, including Ghana, Saudi Arabia and Indonesia, but private businesses can’t compete alone against heavily state-subsidized corporations. U.S. policies should level the playing field to support U.S. business and streamline bureaucracy so we can more effectively use the tools we do have.

Chinese energy finance from official sources is 10x more than the U.S. since 2015

From Bureaucracy to Strategy

The creation of the U.S. Development Finance Corporation (DFC) and the modernization of  EXIM under the first Trump Administration were strong steps towards a more proactive international policy. While those tools need to be sharpened further through their upcoming reauthorizations, the next step toward ensuring American energy dominance and global prosperity is to build an Energy Security Compacts mechanism to maximize the toolkit’s effectiveness.

America already has a model to build on. The Millennium Challenge Corporation (MCC) utilizes a compact framework that can serve as a platform to coordinate the interagency, advance American national security interests and support American energy innovations in foreign markets. These compacts would be bilateral, U.S.-led engagements designed to:

Imagine how this might work in a country like Brazil, a nation with vast reserves of rare earths that the U.S. needs for advanced manufacturing, energy and defense, but whose power grid is unreliable and vulnerable to droughts. An ESC would begin with a joint analysis of the country’s energy and infrastructure bottlenecks and result in a five to 10-year framework that channels existing U.S. tools toward projects that both strengthen Brazil’s grid and directly advance U.S. strategic and economic interests. 

This ESC would align American technical assistance and financing tools, some of which already operate on a cost-recovery basis and often return money to the U.S. Treasury. This could be designed to support a portfolio of complementary projects to build out mining capacity in commodities the U.S. needs and the energy infrastructure to support those projects and provide reliable power to Brazil’s interior. The USTDA could fund feasibility studies and early engineering work across the projects, while MCC provides grant capital for new transmission lines and capacity upgrades. The DFC could take equity stakes in new mining facilities, as it did with TechMet, supplied by EXIM-financed power plants built with American components, like in the Bahamas or Honduras. With the right alignment, these tools could offer more than fragmented assistance; they could deliver a unified, strategic alternative to America’s adversaries that reflects the full strength of U.S. innovation, partnership and purpose.

By combining diplomatic leadership from the U.S. State Department, commercial support from the Commerce Department and technical expertise from DOE, and the financing muscle from DFC and EXIM, an ESC with Brazil would help the U.S. compete more effectively with China. Therefore, strengthening critical supply chains in a fiscally responsible way. In short, this is a smart investment in American national interests, not just aid for Brazil.

Congress has an opportunity to work with the Administration to make this kind of scenario a reality, successfully replicated with America’s strategic partners and allies. Instead of reacting to Chinese and Russian efforts to corner global energy markets, U.S. efforts can proactively empower the private sector to unlock economic opportunity and advance our national interests for mutual benefit with our partners abroad. ESCs can be a bipartisan next step to build on America’s aim to lead the world in deploying affordable, reliable and clean energy systems, while recognizing the central role of energy security to geopolitical influence and reducing global emissions.