The US is claiming leadership in the clean energy transition but is currently more dependent on fossil fuels for electricity than China, casting doubt on its green credentials.

What does this mean?

Despite efforts to bolster clean energy, US utilities rely on fossil fuels for 62.4% of their electricity, surpassing China's 60.5%. This highlights a complex energy landscape where US clean energy output has grown by 16% since 2019, but rising power demand has hindered fossil fuel reduction. While US coal-fired power dropped by 34%, gas-fired production increased by 20%, underscoring its rising dominance. Conversely, China's economic slowdown and aggressive clean energy push reduced its coal dependency. With China's clean energy capacity surpassing fossil sources by 20%, the US is under pressure to expand renewable capacity and maintain its climate leadership.

With sectors like electric vehicles and AI driving a 5.5% increase in US electricity production, the necessity for diversified energy grows. The surge of natural gas in the US energy mix could transform energy market dynamics and investment opportunities. Conversely, China's 67% increase in clean energy output highlights evolving energy dependencies investors should watch.

The bigger picture: Global clean energy race heats up.

China's rapid clean energy growth, fueled by strategic investments, places it at the climate race forefront, while the US contends with challenges to its climate leadership. This shift underscores the urgency for the US to significantly boost clean energy initiatives to maintain influence in global energy policy.