The Trump administration has made another significant move away from international climate and aid commitments by officially notifying global financial institutions that the United States is withdrawing from the significant international climate Loss and Damage Fund. This decision has drawn criticism from climate analysts who view it as a setback for global efforts to support countries heavily impacted by climate change.
The Loss and Damage Fund was designed to offer compensation to poorer nations disproportionately affected by climate-related events, such as severe storms, heatwaves, and droughts. These effects are often linked to the burning of fossil fuels by more industrialized nations. In a recent correspondence, the U.S. Treasury Department announced that U.S. representatives on the fund’s board have resigned, signaling a formal departure.
A spokesperson for the Treasury Department stated in an email that this move is aligned with President Trump’s Executive Order on Putting America First in International Environmental Agreements. The decision has been communicated to all relevant stakeholders involved in the fund.
Back in 2022, the establishment of the Loss and Damage Fund saw then-President Joe Biden commit $17.5 million on behalf of the United States, highlighting its role as a major global emitter. Critics like Mohamed Adow, who leads Power Shift Africa and has been an active participant in U.N. climate discussions, lament the U.S.’s retraction of this pledge, noting the dire impact on poorer, more vulnerable nations.
Compared to the U.S., countries with fewer historical emissions, including Australia, Austria, Denmark, France, Germany, and others, as well as the European Union, have pledged significantly more resources to the fund. Italy and France notably made the largest contributions, each pledging $104 million. To date, the fund has amassed over $741 million in pledges, supported by these collective international efforts.
Rachel Cleetus from the Union of Concerned Scientists criticized the Trump administration’s withdrawal, pointing out that it further disadvantages low-income nations already suffering from climate change, for which they bear little responsibility. She argued that the U.S., as the wealthiest and the largest historic contributor to emissions, has a moral obligation to assist these nations, a responsibility now seemingly neglected.
For many developing countries predominantly situated in the global south, the fund represented a form of environmental justice, an initiative only accepted by wealthier nations, including the U.S., in 2022 after years of opposition. Seve Paeniu, finance minister of Tuvalu, celebrated the fund’s creation, emphasizing its crucial role in addressing the demands of millions worldwide for climate justice and support.
Under the Trump administration, there has been a sharp reduction or elimination of funding for domestic environmental justice, foreign aid, climate change initiatives, and efforts related to diversity, equity, and inclusion. Additionally, the process has begun to withdraw from the landmark 2015 Paris Climate Agreement, a move that amplifies the administration’s broader trend of retreating from international climate commitments.
Recently, the United States also pulled back from a particular climate deal where wealthier nations aid smaller, less affluent countries in transitioning to clean energy sources, further highlighting a shift in U.S. policy on global climate cooperation.
