The withdrawal of US overseas aid by Donald Trump is set to severely undermine global climate financing from developed nations, with potentially catastrophic consequences for vulnerable countries.
Last year, the US accounted for approximately $8 out of every $100 that was allocated from wealthy nations to developing countries, aimed at assisting them in reducing greenhouse gas emissions and dealing with extreme weather effects, according to data from the analyst organization Carbon Brief.
The total expenditure for climate finance last year reached about $11 billion, and a similar amount would have been allocated by the US this year had Joe Biden’s plans continued, the analysis indicates.
However, among Trump’s initial actions upon resuming the presidency during a tumultuous two months have been the US exit from the Paris climate accord and significant cuts to overseas aid initiatives, including climate finance.
The White House has suspended a large portion of funding to USAid, the agency responsible for a third of US climate finance, alongside contributions to the international Green Climate Fund and the Fund for Responding to Loss and Damage.
Trump has also withdrawn the US from a Just Transition Energy Partnership with Indonesia, a program valued in the tens of billions intended to phase out coal usage. Additionally, the White House has begun to remove climate-related references from government websites.
Advocates warned the Guardian that these measures would significantly hinder impoverished nations’ ability to manage severe weather impacts. Anne Jellema, executive director of 350.org, stated: “The US retreat from its global climate finance commitments is a staggering blow to the chances of keeping global temperature rise to 1.5C [above preindustrial levels]. By abruptly cutting nearly 10% of the already limited funds for climate protection in developing countries, it effectively abandons millions of communities who have not contributed to global warming yet are losing homes, livelihoods, and lives as a result.”
She urged other nations to take action. “This is the time for affluent countries to rise above political disputes and demonstrate genuine leadership. The world is watching, and the stakes have never been higher. We must unite to keep alive the hope for a sustainable future.”
Under Trump’s newly established “department of government efficiency,” led by Elon Musk, USAid staff have been facing layoffs and halted shipments. Although some staff have been reinstated amid controversy and legal orders, Trump is poised to persist in his efforts to eliminate all forms of aid, particularly targeting climate finance.
During Trump’s first term, climate funding saw a significant decrease, and this time around, it is poised to decline even further due to overarching cuts to government spending.
Historically, the US has contributed less to climate finance in relation to its status as the largest economy and carbon emitter, compared to other developed nations. While Joe Biden had made strides to boost funding during his presidency, he encountered substantial challenges from the Republican-dominated Congress.
Climate finance is essential for assisting impoverished nations in dealing with the visible impacts of the climate crisis, including droughts, floods, heatwaves, and storms. The developing world incurs hundreds of billions of dollars in damages as a direct result, with expectations of worsening impacts ahead.
These nations are already allocating significant portions of their domestic budgets to repair damage and enhance resilience, which diverts funds necessary for health, education, and economic growth.
Wealthy governments are obligated under the Paris Agreement to provide financial support to poorer countries that contribute minimally to greenhouse gas emissions but disproportionately bear the effects.
At last November’s annual conference of the parties (COP) of the UNFCCC, nations unanimously agreed that climate finance should reach $1.3 trillion annually by 2035. Most of this funding is expected to come from the private sector, with some potentially sourced from taxes on high-carbon activities such as shipping and aviation, and at least $300 billion from the developed world.
Without significant contributions from the US, the world’s largest economy, achieving these targets will likely become much more challenging.
Harjeet Singh, founding director of the Satat Sampada Climate Foundation, emphasized: “As the largest historical emitter, the US holds a substantial share of responsibility for the climate challenges impacting vulnerable populations globally. We must hold them accountable and ensure they fulfill their obligations towards global climate reparations.”
Countries with rapidly growing economies still classified as developing by the UN, such as China, the United Arab Emirates, and various oil-producing nations, also contribute to climate financing. Pressure from developed regions like the EU for these emerging economies to increase their contributions is likely to grow as the US withdraws and they face rising demands for defense spending.
The US State Department was contacted for comment.
