Energy Efficiency & Climate Change Law

On November 3, 2009, the U.S. Export-Import Bank, which helps finance the export of U.S. goods and services to international markets, became the first Export Credit Agency to adopt a comprehensive Carbon Policy.  

The Bank said that its new carbon policy — which includes a $250 million credit facility to finance renewable energy exports, including solar, wind and geothermal energy — is aimed at guiding its support of United States exports as companies around the world increasingly seek to invest in low-to-no-carbon technologies.   Fred P. Hochberg, chairman and president of the Export-Import Bank stated that this approach "is good for the environment. It’s good for business, and it’s good for American workers."  

The announcement is yet another episode in the emerging CleanTech "Arms Race" — the competition for investment in clean technology between the United States and its trade competitors, particularly China.  The Export-Import Bank’s new carbon policy was unveiled less than a week after the announcement of a $1.5 billion, 600 mega-watt windfarm in Texas.  $450 million from the American Recovery and Reinvestment Act (commonly referred to as the "Stimulus Bill") will be contributed to the project, which will largely be financed by Chinese banks and supplied with Chinese-made wind turbines.  U.S. Sen. Charles E. Schumer (D-NY), who opposes the contribution of Stimulus dollars to the project, anticipates that the windfarm will generate as many as 3,000 jobs in Shenyang, China, compared with 330 jobs in Texas.  

While the use of funds for the project from the Stimulus Bill is contentious, perhaps an investment in excess of $1 billion by a Chinese company in a U.S. windfarm illustrates the potential for the United States renewable energy and energy efficiency industries to attract foreign investment.  The 600 MW project will add to the 28,635 MW of windpower currently installed in the U.S. (as of April 30, 2009).