US Retreat Sparks New Push to Save $45 Billion Climate Deals

The United States' withdrawal from the Paris Agreement under President Trump's second term has sparked a new push among remaining countries to save the $45 billion in climate deals. The U.S. retreat, announced on January 20, 2025, has raised concerns about the future of international cooperation on climate change and the success of the Paris Agreement. However, many countries have reaffirmed their commitment to the accord, and some have even stepped up their efforts to collaborate on climate action.



The U.S. withdrawal from the Paris Agreement has significant implications for the global climate finance landscape, particularly the $45 billion in climate deals. The U.S. has been a significant contributor to international climate finance, providing around $3 billion annually. With the withdrawal, the U.S. is likely to reduce or even halt its contributions to international climate finance, which could lead to a significant shortfall in funding for developing countries to mitigate and adapt to climate change (White House, 2025).

The U.S. withdrawal could also lead to a reduction in private sector investment in climate projects, both domestically and internationally. The Paris Agreement provided a framework for countries to set ambitious climate targets and policies, which in turn encouraged private sector investment in low-carbon technologies and projects. With the U.S. withdrawal, this framework is weakened, potentially leading to reduced private sector investment (World Bank, 2021).

The $45 billion in climate deals, announced at the 2021 UN Climate Change Conference (COP26), are at risk of being affected by the U.S. withdrawal. Many of these deals rely on U.S. funding or U.S.-led initiatives. For example, the U.S. had pledged $9.5 billion to the Clean Energy and Sustainable Development Goal (SDG) Investment Plan, which aims to mobilize $100 billion in public and private sector investment for clean energy projects in developing countries. With the U.S. withdrawal, this funding is at risk (COP26, 2021).



In response to the U.S. withdrawal, many countries have reaffirmed their commitment to the Paris Agreement and have pledged to increase their contributions to international climate finance. For instance, the European Union has pledged to increase its climate finance to €300 billion between 2021 and 2027 (EU Climate Finance, 2021). Additionally, other major emitters like China and India have expressed their commitment to the Paris Agreement and have pledged to increase their contributions to international climate finance.

The U.S. retreat from international climate deals could also lead to geopolitical shifts, with countries like China, the EU, and India taking more prominent roles in global climate leadership. This could have implications for the success of climate deals, as these countries may push for different priorities or approaches. However, increased international cooperation and regional agreements could help fill the void left by the U.S. and drive progress on climate action.

In conclusion, the U.S. withdrawal from the Paris Agreement under President Trump's second term has significant implications for the success of the $45 billion in climate deals. While the U.S. retreat has raised concerns about the future of international cooperation on climate change, many countries have reaffirmed their commitment to the Paris Agreement and have pledged to increase their contributions to international climate finance. The U.S. retreat could also lead to geopolitical shifts and increased international cooperation, driving progress on climate action despite the U.S. withdrawal.