Commissioner Louis E. Sola, speaking at the LNG Bunkering Summit 2024 in Fort Lauderdale, Florida, outlined a bold agenda for U.S. energy and trade policies under the incoming Trump administration. His declaration that the “war on fossil fuels exports is over” framed a vision of renewed investment in energy and trade infrastructure that aligns with the priorities of agencies like the Export-Import Bank of the United States (EXIM Bank) and the U.S. International Development Finance Corporation (DFC).
- Reversing Restrictive Policies on Fossil Fuels:
Commissioner Sola strongly criticized the current U.S. Department of Treasury’s guidance that discourages funding for fossil fuel projects at Multilateral Development Banks (MDBs), a policy introduced under the Biden administration to prioritize renewable energy. Additionally, he pointed to restrictive EXIM Bank guidelines that have constrained financing for overseas fossil fuel projects, urging a return to policies that fully leverage U.S. energy exports, such as liquefied natural gas (LNG).- The U.S. Department of Treasury’s guidance under the Biden administration called for MDBs to cease financing unabated fossil fuel projects except in rare circumstances, effectively sidelining the U.S. in global energy development.
- EXIM Bank has similarly limited financing for international fossil fuel projects, hindering U.S. exporters’ competitiveness in meeting global energy demands.
- Expanding LNG Infrastructure:
Commissioner Sola underscored the importance of ending the pause on LNG infrastructure project approvals, which has delayed critical investments in export terminals. By prioritizing LNG development, the U.S. can increase its global energy footprint and support allies in reducing reliance on adversaries like Russia. - Promoting U.S. Trade and Infrastructure Financing:
Commissioner Sola proposed a U.S.-led initiative to fund global trade infrastructure, akin to China’s Belt and Road Initiative. This program would empower agencies like EXIM Bank and DFC to finance projects such as LNG terminals, pipelines, and port facilities, enhancing both U.S. exports and allied nations’ infrastructure. - Reciprocal and Balanced Trade:
Commissioner Sola called for reciprocal trade agreements with Western Hemisphere allies to promote economic stability and strengthen regional partnerships. Commissioner Sola also advocated for revisiting tariffs with China to create fairer terms that benefit U.S. businesses.
Louis E. Sola is a Commissioner with the U.S. Federal Maritime Commission. The thoughts and comments expressed here are his own and do not necessarily represent the position of the Commission.