December 9, 2020
A Trade Policy to Combat Climate Change
President-elect Biden has indicated that climate change will be a central focus of his administration, but climate change is a global problem that will require the distribution of innovative technology around the world. In a new analysis, AAF’s Director of Energy Policy Ewelina Czapla and Simran Borade examine the supports for, and barriers to, exporting innovative green technology from the United States. While China massively subsidizes its exports, the United States should not seek to match those subsidies but instead should pursue fair competition across borders that allows the best technology to proliferate, they argue.
Simply trying to match China’s efforts abroad by subsidizing energy infrastructure will fail to create a competitive marketplace where technological advances flourish over the long term and drive effective efforts to address climate change. Further reliance on existing foreign assistance programs will simply continue helping a few companies rather than opening doors for whole industries. Instead, changes to trade policy are necessary to for the U.S. energy sector to compete globally.