As the 2024 US presidential election heats up, energy policy is becoming a key issue in seven key battleground states. Nearly nine in 10 voters in these states want candidates to talk about how they intend to tackle rising energy costs, inflation and America’s broader energy strategy.

But this isn’t just about domestic oil prices or renewable energy targets, it’s also about how the U.S. plays on the world stage, especially as Europe faces an industrial crisis that could redefine U.S. geopolitical strategy. The problem is how to position ourselves.

The health of Europe’s industrial base, weakened by energy shortages and high costs, is increasingly intertwined with U.S. security interests, and how the next U.S. president navigates this will have far-reaching implications.

Sanctions aimed at weakening Russia’s war economy exposed Europe’s dependence on Russian energy. In 2021, Russia supplied nearly half of Europe’s gas, but in 2023 the figure fell to 8%. While this may be celebrated as a strategic victory over Russia, Europe now faces severe energy shortages, and the impact on the continent’s industry will be devastating.

Germany, the EU’s economic leader, faces a 7% decline in industrial output this year. Traditional heavy industry, which was once the backbone of Europe’s economy, is on the brink of collapse. With the transition to renewable energy too slow to close the gap, Europe urgently needs new energy partners to revive its industry and ensure its competitiveness.

The United Arab Emirates’ recent $16 billion acquisition of Covestro, one of Germany’s largest chemical companies, offers a glimpse of how foreign investment can stabilize Europe’s industrial sector.

Producing essential materials for the automotive, construction and electronics industries, Covestro plays an important role in the German economy, contributing around 5% of GDP. As part of the UAE’s broader strategy, the country is poised to invest $150 billion by 2027 in sectors including energy and industry, positioning itself as a key economic player.

Through the Covestro Agreement, the UAE provides more than financial capital. It provides a lifeline to an energy-starved sector. The combination of the UAE’s sustainability-minded ethos and bold investment strategy comes at a pivotal time for Europe as it struggles to meet ambitious climate change targets without destroying traditional industries. are. Such partnerships demonstrate the emergence of the Gulf states as important energy and investment partners for Europe’s future.

These types of investments represent a global partnership that the United States should actively foster to strengthen allies and prevent European industry from collapsing under the weight of energy scarcity. U.S. strategic interests require that we not only encourage but support such partnerships.

The risks are not only economic but also geopolitical. The United States faces increasing challenges, particularly from China’s expanding influence and Russia’s destabilizing aggression. Stabilizing Europe’s economic foundations through investment will strengthen Europe’s competitiveness, reduce burdens on the United States, and allow Washington to focus strategic resources where they matter most, such as countering China’s ambitions in the Indo-Pacific. Do it like this.

Additionally, the United States needs to be aware of the risks posed by China’s aggressive trade practices, especially in critical areas such as electric vehicle (EV) production. Together with AESC’s recent $1 billion investment in a gigafactory in France, Gulf investment in Germany could increase Europe’s competitiveness and reduce its dependence on imports from China. These efforts provide the United States with a dual opportunity to not only support economic allies but also strengthen its goals of countering Chinese influence globally.

Such a partnership would also reduce U.S. military and economic involvement in Europe and allow Washington to pivot to other pressing challenges, such as China’s territorial ambitions in the South China Sea and Russia’s expanding footprint across Africa. allows you to transfer.

As the 2024 election approaches, U.S. voters are increasingly aware that global energy markets are intertwined and that even as we make progress toward energy independence, global changes will impact U.S. economic and foreign policy. need to be recognized. These changes will affect Americans whether they choose isolationism, or “America First,” or an internationalist approach. A stable Europe supported by investment will help protect the United States from energy shocks and protect both our economic stability and our strategic interests.

Supporting international partnerships is more than just foreign policy; it’s also an investment in America’s prosperity. Regardless of the election results, the next administration will need to navigate these global power dynamics to protect national interests.