China has turned itself into a powerhouse of global energy finance due to its overseas investments that are mostly focused on fossil fuels. Emerging countries have created a demand for Chinese investments in various fossil fuels like gas, coal, and oil. China provides affordable loans to the countries that need them and helps them meet the demands of industries, households, commerce, and transport. The United States is now facing China’s rapid global expansion, and it is the right time to compete. For the Fiscal year of 2020, the United States is all set to spend $2 billion to support developing countries in their low-carbon development plans. By financing the ever-growing energy projects, the US would continue to contribute to the Paris agreement.
This move will counter China’s energy investments all over the globe. China’s effort to finance the energy plans of developing countries is mostly inbound. China is just responding to the demands, and it has let to outbound fossil fuel investments. The US must now offer low-interest credits to emerging countries to help them meet their demands and also provide the necessary energy, financial and technical assistance to the country’s regulators and governments to help them with their environmental regulatory capacity.