US exits board of climate fund that aids poor nations
The Loss and Damage Fund was created after tough parleys at the UN Climate Conference (COP27) in Egypt’s Sharm El Sheikh in 2022
The US, the largest historical emitter of greenhouse gases, has withdrawn from the Board of the Fund for Responding to Loss and Damage, a move that could significantly hamper an internationally agreed initiative to help poorer countries deal with the harms of the climate crisis.
Developing country negotiators and climate activists shared a letter from the Department of the Treasury dated March 4, which said that the US is informing Jean Christophe Donnellier, developed country co-chair of the Fund, of its withdrawal. Both the US Board member and Alternate Board member will be stepping down immediately, it informed.
The US is the second largest carbon dioxide emitter in the world currently (after China), but historically remains the largest polluter. The US is responsible for 20% of historical CO2 emissions globally between 1850 and 2022, with per capita emissions of 18 tCO2e/capita compared to the global average of 4.7 tCO2e/capita, according to the United Nations Environment Programme’s Emissions Gap report of 2024.
If countries continue with their current environmental policies, it would lead to 3.1°C warming over pre-industrial levels, the United Nations report flagged last year, revealing that countries will almost certainly collectively fail to achieve the Paris Agreement’s goals.
The Loss and Damage Fund was created after tough parleys at the UN Climate Conference (COP27) in Egypt’s Sharm El Sheikh in 2022. Its objective is to provide support to developing countries in efforts to avert, minimise and address loss and damage associated with the adverse effects of climate change.
The Board of the Fund made progress towards full operationalisation at its third meeting in Baku, hosted by the COP29 Presidency of Azerbaijan last year.
Currently, several countries including UAE, Germany, Italy and France have pledged around $700 million to the fund. The US, which is historically the highest greenhouse gas polluter, pledged $17.5 million.
“The decision by the Trump administration to withdraw from the new Fund for Responding to Loss and Damage not only exemplifies a longstanding pattern of obstruction by the US government in securing necessary finance for addressing climate impacts but also undermines global efforts to deliver climate justice. While their absence might keep the ambition of the Fund from being diluted, it does not absolve the US of its responsibilities. As the largest historical emitter, the US bears a significant share of the blame for the climate adversities affecting vulnerable populations worldwide. We must hold them accountable and ensure they contribute their fair share towards global climate reparations,” said Harjeet Singh, climate activist and founding director, Satat Sampada Climate Foundation.
HT reported on January 21 that President Donald Trump signed an executive order soon after taking office directing the US’ withdrawal from the Paris climate agreement, weakening what has become a global movement to combat the climate crisis over the past four years.
On March 1, HT reported that the Trump administration dismissed hundreds of researchers and meteorologists at the National Oceanic and Atmospheric Administration, a move scientists warned will significantly impact climate forecasting and research in India.
Experts emphasised that global cooperation on climate modelling and research is essential for forecasting severe weather events, with NOAA playing a strategic role in these efforts.
“All large historical emitters have a moral and economic obligation to lead, not retreat, on climate action. It is even more imperative now, for other OECD countries to step up in their climate action. The world needs to look at a long-term, sustainable resourcing strategy for the Fund for Responding to Loss and Damage, to provide restitution for the damage stemming from climate change impacts. Furthermore, new geography-wide insurance schemes should be developed to protect vulnerable countries and communities, said Dhruba Purkayastha, director, Growth and Institutional Advancement, CEEW.
