On January 20, 2025 the US President Donald Trump signed an executive order titled “Putting America First in International Environmental Agreements,” officially starting the process of withdrawing the United States from the Paris Agreement. This landmark accord adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) aims to reduce global greenhouse gas emissions and combat the effects of climate change.
The order requires the US ambassador to the United Nations to formally notify the UN Secretary-General of the withdrawal. According to the established procedures, this process will take about one year to complete.
The executive order also explicitly halts US financial commitments under the UNFCCC, including support for developing countries in areas like climate mitigation, adaptation, technology transfer, and capacity building. The US is instructed to immediately cease or cancel any previously announced financial obligations under the convention.
However, the US will remain a party to the broader UNFCCC. This means the country will continue to participate in international climate negotiations, except for those involving financial support to other nations. Additionally, the US has not abandoned its national goals for reducing greenhouse gas emissions by 61-66% by 2035 compared to 2005 levels. Although these targets are not legally binding, they reflect the country’s intent to maintain its domestic climate efforts.
The decision to withdraw from the Paris Agreement echoes the events of 2017, when the Trump administration first attempted to exit the accord. At that time individual states like California continued to pursue independent climate policies. Similarly, it is expected that many US states will remain active in climate initiatives despite the federal government’s decision.
Meanwhile, other signatories to the Paris Agreement including France, Germany, and Italy are likely to step up their efforts to compensate for the reduced global contributions from the US.
While this move may slow the progress of global climate initiatives, it will not halt the momentum of the broader fight against climate change. Many international organizations and private initiatives are ramping up their climate ambitions.
For instance, billionaire Michael Bloomberg’s foundation has announced its commitment to fund the UNFCCC to cover the financial gap left by the US withdrawal. The foundation aims to ensure full funding of the UNFCCC Secretariat’s operational expenses, which are projected to reach $96.5 million for 2024–2025.
In conclusion, the US withdrawal from the Paris Agreement poses a significant challenge to global climate efforts. However, the movement to combat climate change will continue, driven by new funding sources and ongoing international and private-sector commitments.
Prepared by: Kuanysh Beisengazin, Head of the National Bureau of Economic Research, specifically for the portal www.economykz.org
