A recent investigative report by the nonprofit State Armor has raised concerns about Energy Foundation China (EFC), a San Francisco-registered climate nonprofit, suggesting the group may be covertly promoting Chinese government interests under the guise of green energy activism. Although technically based in the U.S., the report emphasizes that the majority of EFC’s staff operate from Beijing, and its activities have increasingly focused on advancing environmental policies that critics argue weaken American energy independence.
EFC, which spun off from the original Energy Foundation in 2019, has since rebranded itself to focus solely on China-related initiatives. The report claims that EFC has spent millions funding organizations that advocate for ending fossil fuel use in the U.S., including the Rocky Mountain Institute and the Natural Resources Defense Council. These groups have influenced domestic policy, including recent Department of Energy decisions, while simultaneously receiving substantial financial backing tied to EFC’s Beijing-based operations.
State Armor argues that the organization’s actions align with China’s strategic objectives. For instance, EFC has supported lawsuits aimed at Western fertilizer giant Bayer, which critics suggest could push U.S. reliance toward Chinese agricultural suppliers. Further, it has funded the International Council on Clean Transportation (ICCT), which backs widespread EV adoption and is a vocal advocate for climate policy components in the Inflation Reduction Act.
Calls for Congressional Oversight and Alarming Personnel Ties
Following revelations in the report, State Armor has formally urged Congress to launch a thorough investigation into EFC. Lawmakers such as Rep. John Moolenaar (R-MI), chair of the House Select Committee on Strategic Competition with the CCP, have echoed these concerns, warning that the Chinese Communist Party is exploiting U.S. nonprofit structures to manipulate policy and shift critical energy infrastructure toward Chinese supply chains.
A central point of concern is the leadership and affiliations of Energy Foundation China personnel. CEO Zou Ji is a former official in China’s National Development and Reform Commission and participated in the 2015 Paris Climate Talks as part of China’s delegation. Board member Hongjun Zhang also has extensive ties to various Chinese ministries and legislative bodies, deepening suspicions of CCP influence.
EFC’s headquarters are situated in a building owned by a Chinese state investment firm linked to media propaganda, the report notes, adding to concerns that the organization’s operations may be more aligned with Chinese state interests than previously believed. State Armor contends that these ties illustrate how Beijing leverages environmental initiatives as tools for strategic advantage.
Pushback from EFC and Broader Implications for U.S. Energy Policy
EFC has dismissed the allegations. In a statement to Fox News Digital, Vice President Vance Wagner said the foundation solely funds research and capacity-building projects related to climate change in China, maintaining that no funds are used to influence U.S. policy. Wagner asserted that the organization complies with all legal standards and accepts no money from any government or political party.
However, the report also details collaborations between EFC and U.S. institutions. In 2023, Energy Foundation China reportedly supported an event involving California Governor Gavin Newsom during a visit to China and has funded over $1 million in green energy research at the Lawrence Berkeley National Laboratory.
Critics such as Jason Isaac, CEO of the American Energy Institute, argue that the U.S. is drifting toward energy dependence on a foreign adversary, jeopardizing both national security and economic stability. He warns that China’s control over green technology supply chains from solar panels to rare earth minerals may undermine American sovereignty.
State Armor has issued letters to congressional leaders urging immediate oversight. “Energy Foundation China is not a passive observer,” the letter states. “It is an active player in a geopolitical contest where America’s energy security and global leadership hang in the balance.”
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