The world is undergoing an energy transition from fossil fuels to renewables. It is a global response to the dangers of global warming. The United States fully withdrew from United Nations climate negotiations in the fall of 2025. With an administration composed entirely of climate change deniers, the U.S. has abandoned global leadership on the energy transition. This radical action has enormous geopolitical, economic, and climate ramifications. For Americans, none of them are good.
Historically, the U.S. has been the world’s largest emitter of greenhouse gases, but China has now assumed that dubious distinction. But unlike the U.S., China is determined to reduce its emissions. Energy drives much of modern commerce, and China is seizing the opportunity to develop its economy by supplying the world with clean energy as the U.S. drops further and further behind.
China is the largest trading partner of dozens of countries around the world and is the biggest supplier of low-carbon goods and everything needed for the energy transition. It has a virtual monopoly on many green technologies and is the biggest installer of clean energy by far in the world.
While the U.S. wants to drill more oil wells and keep coal plants running, China is becoming the dominant economic force in the world. China has an immense coal industry itself and by no means is close to cleaning up its own act with respect to greenhouse gases. But unlike the U.S., China is not saddled with climate deniers in positions of power. As a result, according to many economic experts, China is in a strong position to eat America’s lunch in the future global economy.
