China Outpaces U.S. in Clean Energy Investment, Again

Today the Pew Charitable Trust released its annual ranking of how countries are faring against one another in the clean energy race, and China has for the fourth time in the past five years overtaken the United States as the global leader in clean energy investment.

To keep up, the United States will need to take new steps that build on what has been accomplished over the past five years and fills the void left by the winding down of many of the important clean energy and energy efficiency programs and investments made through the American Recovery and Reinvestment Act of 2009.

Unfortunately, there is little indication that Congress is poised to lead on this issue going forward, so it is imperative that the administration use all of the tools it has at its disposal to meet this challenge.  Here are three things that it can do right away:

• First, the administration should use the greenhouse gas regulations for existing power plants that it will propose in June to promote clean energy investment.
• Second, the administration should maximize inward foreign direct investment in new projects in the U.S. clean energy sector.  By attracting greater foreign investment in new, or so-called "greenfield," clean energy projects, the U.S. will accelerate clean energy deployment and overall investment.
• Third, the administration should expand the use of existing financial instruments to increase institutional investment in clean energy.

China Outpaces U.S. in Clean Energy Investment, Again