The United States, under the Biden administration, is set to significantly increase its spending on international climate finance in 2023, surpassing previous years’ allocations. A State Department report released on Saturday reveals that the U.S. is expected to allocate over $9 billion towards global climate initiatives next year, marking a substantial rise from the $5.8 billion spent in 2022.
This increase aligns with President Joe Biden’s commitment to intensifying efforts in combating climate change both domestically and globally. Since his inauguration, President Biden has been a vocal proponent of moving away from traditional energy sources, advocating for cleaner, alternative options despite ongoing debates about their cost and efficiency. In line with this, Biden previously announced plans to invest over $11 billion annually in international climate support by 2024.
The State Department’s report highlights the U.S.’s dedication to assisting developing nations in their climate action pursuits. The U.S. government is focused on enhancing international climate finance and urging major financial institutions to adapt, enabling emerging and developing countries to address climate change effectively.
Concurrently, Vice President Kamala Harris, at the Climate Change Conference (COP28) in Dubai, declared the U.S.’s intent to contribute an additional $3 billion to climate and gender equity funds. This announcement coincides with the deployment of numerous U.S. officials to Dubai, financed by taxpayer dollars.
A key development at the conference involved the U.S. partnering with the Rockefeller Foundation and the Bezos Fund to establish the Energy Transition Accelerator (ETA) coalition. This initiative aims to leverage private sector resources to advance Biden’s climate objectives.
The State Department stated that the ETA coalition could potentially mobilize between $72 billion and $207 billion in transition finance by 2035. This pioneering coalition intends to incentivize participating nations to escalate power sector decarbonization efforts, including the deployment of clean power, retirement of fossil fuel assets, and enhancement of storage, transmission, and distribution capacities.
Part of the Biden administration’s energy transition plan includes a push towards electric vehicles, with an ambitious goal of two-thirds of new vehicles being electric by 2032. This goal, however, has met with skepticism from auto dealers who argue that the majority of consumers are not yet prepared for such a significant shift towards electric vehicles.
The commitment to these extensive spending initiatives comes at a time when the U.S. grapples with persistent inflation issues, including high gas prices, which have been a consistent challenge throughout Biden’s tenure.