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President Donald Trump’s second term has begun with sweeping changes, just as the candidate promised: tariffs instituted against allies and adversaries alike, budgets and programs cut, and entire agencies shuttered.
This disruption has included energy and development policies. President Trump has stressed the need for “energy dominance,” or sometimes “energy abundance.” On his first day in office, he declared an energy emergency intended to streamline development of domestic energy resources, and he has abandoned the Biden administration’s focus on climate change. Energy Secretary Chris Wright and Treasury Secretary Scott Bessent have both stressed that energy abundance is essential to economic growth and opportunity. Wright has repeatedly asserted that it is not just a goal for the United States, but a foundation for development around the globe,[1] and that the United States can partner with developing countries seeking to build out their energy systems.
If the current US administration does indeed wish to work with other countries to promote their energy abundance, how will it achieve that goal? This post highlights the foundational elements of effective US energy engagement that the Trump administration would need to get right to foster successful partnerships with emerging markets and developing economies (EMDEs[2]).
Energy Drives Economic Development
Energy development around the globe is about more than access to basic services such as illumination and phone charging; energy enables rising living standards. Modern energy systems, and particularly electricity, power broader economic development—including mills and agricultural processing plants, rural medical facilities, and machinery that drives local industries. While countries have very different energy consumption profiles, there are no wealthy countries that are low-energy countries. An additional challenge is that energy development does not occur in a vacuum. Vital systems like healthcare, food, and education enable growth in the energy sector as part of countries’ broader socio-economic development.
Energy decision makers in EMDEs thus need to chart a course: do they emphasize using conventional systems and fossil fuels (often domestically produced) or low-emission technologies? Outside parties, including the Biden administration, have in the past pushed for zero-carbon systems, but this pressure deserves careful consideration. Although it is true that many EMDEs are among the most vulnerable to climate change, and that their emissions are growing fast, they have contributed only a small share of global GHG emissions—and even less on a per capita basis.
Moreover, many in EMDEs resent being pressured to bear the cost of decarbonization to fix a problem they did not create. EMDE governments will typically make their decisions based on what they deem to be the most pragmatic solution that addresses their development needs, which may include low- or zero-emission technologies if they are feasible in financial and socio-economic terms. External partners risk undermining trust if they fail to recognize and respond to this reality—and to provide more feasible pathways toward climate goals.
Past US Government Engagement on Energy Development
The United States has long recognized the role energy plays in development. In fact, it has been one of the largest providers of bilateral assistance in the energy sector, with efforts across South and Southeast Asia, Africa, and Latin America. US engagement, including technical assistance, regulatory partnerships, and policy dialogue, has delivered real and tangible benefits. Before it was abolished in recent weeks, the flagship initiative Power Africa brought new or improved electricity access to over 216 million people and facilitated $29 billion in power investments, involving significant amounts of private capital.
These engagements have also received their share of criticism. As is true for any taxpayer-funded program, they have reflected US interests—some rooted in humanitarian considerations, and others focused on promoting stability, fostering American soft power, and pursuing other strategic and economic goals. In some instances, US priorities were perceived to outweigh the recipient’s most urgent needs. In addition, development experts have long expressed concerns that US and other aid programs foster dependency rather than local capacity. All of these challenges have been further compounded by the fragmented delivery of US energy assistance —multiple agencies with overlapping mandates, poor coordination, and rigid planning cycles.
Features for Future US Energy Development Engagements
With the Trump administration dismantling much of the US foreign assistance architecture, and given the possibility that at some point in the future some US administration may seek to restructure its aid apparatus, this moment calls for a closer look at the key features necessary for effective engagement with EMDE partners. Detailed discussion of the institutions, reforms, and programs is important, but can wait until a later stage.
If energy is the sector that enables economic growth and opportunity, and the administration is indeed committed to engaging partner countries, then refashioning American assistance on these foundations can help ensure EMDE energy systems become more resilient, responsive to real-world needs, and capable of delivering sustained impact while maximizing private investment. This development can serve the needs and interests of both the partner countries and the American taxpayer.
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[1] For example, see Secretary Wright’s remarks here, here, and here.
[2] For the purposes of this post, China is not included in this category.
The critical minerals executive order signed by President Trump on March 20, 2025, aims to significantly increase domestic production of critical minerals within the United States.
President Donald Trump has made energy a clear focus for his second term in the White House. Having campaigned on an “America First” platform that highlighted domestic fossil-fuel growth, the reversal of climate policies and clean energy incentives advanced by the Biden administration, and substantial tariffs on key US trading partners, he declared an “energy emergency” on his first day in office.
When the Inflation Reduction Act (IRA) was passed in August 2022, it triggered unprecedented enthusiasm among potential hydrogen suppliers.
Amid plans to nearly double its steel production capacity by 2030 to serve its growing infrastructure needs, the world’s No. 2 steel producer India has released plans to reduce greenhouse gases from the sector, which account for about 10 percent of the nation’s total emissions.
Energy-economic models are increasingly being used to inform climate mitigation policies. This Comment describes three situations where models misinform policymakers and calls for more iterative, policy-orientated modelling exercises that maximize learning in the pursuit of long-term emissions reductions goals.
Can U.S. gas exports throw a lifeline to Europe without raising prices at home?
The incoming Trump administration should embrace a diverse energy mix, including renewables, for the sake of economic and national security.
