Energy for Growth Hub
Report Apr 02, 2024

U.S. Energy Security Compacts: A Bipartisan Blueprint to Reinvigorate U.S. Influence Through Energy Investment

Making Markets Work
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U.S. policymakers in both political parties recognize that shoring up the energy security of vital allies is core to U.S. national security interests. But U.S. capacity to deliver energy investment at scale is hamstrung by major limitations in its available tools and in the ways it does (and often doesn’t) coordinate resources across the interagency. Fortunately, we’ve learned important lessons from past efforts to scale global energy investment, including Power Africa, the Millennium Challenge Corporation, and the Partnership for Global Infrastructure.

The Hub builds on those lessons to propose Energy Security Compacts, a new delivery and coordination mechanism for five-year energy security investment packages in key allied countries. This initiative would provide a streamlined structure enabling the U.S. to respond quickly, efficiently, and effectively to the specific energy concerns facing its partners – and provide a far more credible response to geostrategic competitors.

This Energy Security Compacts blueprint lays out the case for why such an initiative is needed and why it matters deeply to U.S. national security; suggests several potential institutional options, including housing the coordinating office in either MCC or USAID; and presents scenarios for budgeting under various fiscal conditions. Finally, it proposes actionable steps that can be taken by Congress, the White House, and external advocates to advance this initiative.

Read our full Energy Security Compacts blueprint  (15 pages) here.

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