“Trump’s Review Threatens $11 Billion in Climate Funding for Developing Countries”
On his first day in office, US President Donald Trump initiated the process of withdrawing from the 2015 Paris climate agreement and announced a pause on all government aid funding for 90 days pending a review of the aid program’s policy goals. This decision puts around $11 billion a year of funding for climate projects in developing countries at risk.
In 2024, the US provided approximately $11 billion to assist developing countries in reducing planet-heating emissions and adapting to climate change. However, all current and future projects are now in jeopardy due to the ongoing review.
Mattias Söderberg, the global climate lead at Danish charity DanChurchAid, expressed disappointment at the decision, emphasizing the significant impact that aid funding has on vulnerable communities in developing countries. Similarly, Tjada D’Oyen McKenna, the CEO of humanitarian charity Mercy Corps, called on governments, civil society, and the private sector to step up and accelerate efforts to reduce emissions and scale up climate finance.
Following his inauguration, Trump signed a series of executive orders, including one that announced the US’s withdrawal from the Paris Agreement. The order criticized the agreement for allocating American taxpayer dollars to countries that may not require financial assistance. Additionally, the order requires government departments and federal agencies involved in disbursing climate funds overseas to submit a report within 30 days detailing actions taken to revoke policies supporting former President Joe Biden’s international climate finance plan.
The executive order also stated that the US would cease any financial commitments made under the United Nations Framework Convention on Climate Change (UNFCCC). This decision raises concerns about the US’s future contributions to the UNFCCC, as the country contributes a significant portion of the convention’s budget and owes it approximately $10 million.
Furthermore, Trump’s order targeting overseas aid spending for review over the next 90 days raises additional uncertainties about the future of climate finance and foreign aid under the new administration.
While the US will join a small group of nations outside the Paris Agreement, it will remain a party to the UNFCCC, allowing it to participate in COP talks with full voting and speaking powers. Legal experts are divided on whether Trump has the authority to withdraw from the UNFCCC without Senate approval, as the Senate overwhelmingly endorsed the convention in 1992.
In addition to withdrawing from international climate agreements, Trump announced measures to boost domestic oil and gas production while restricting the development of wind energy. The implications of these decisions on global climate action and the future of climate finance remain uncertain.
Overall, the review of aid funding for climate projects in developing countries and the US’s withdrawal from international climate agreements signal a significant shift in US climate policy under the new administration, raising concerns about the future of global climate action and cooperation.