United States' Immediate Withdrawal Draws Criticism
In a move that has sparked international outrage, the United States has officially withdrawn from the global climate compensation fund designed to assist developing nations affected by climate change. The Fund for Responding to Loss and Damage was created under the United Nations framework to financially support vulnerable countries facing irreversible climate impacts.
Rebecca Lawlor, Deputy Director at the US Office of Climate and Environment, formally communicated the decision in a letter to Jean Christophe Donnellier, Developed Country Co-Chair of the fund. "On behalf of the United States Department of the Treasury, I write to inform you that the United States is withdrawing from the Board for the Fund for Responding to Loss and Damage, effective immediately," Lawlor stated. She also confirmed that the US representatives on the fund's board would step down without replacement.
African Nations Condemn US Withdrawal
Reacting sharply to the announcement, the African Group of Negotiators (AGN)—a prominent coalition representing African countries at UN climate negotiations—expressed deep disappointment. Ali Mohamed, Chair of AGN, highlighted the severity of the decision, noting that "This decision, made by the nation with the largest historical responsibility for climate change, jeopardises vital support for vulnerable countries facing irreversible climate impacts."
The AGN's stance underscores the profound concern that US withdrawal could significantly undermine international efforts toward climate justice and sustainable development in regions severely impacted by climate change.
Historical Context and Global Response
The Fund for Responding to Loss and Damage was established after extensive negotiations at the UN climate conference held in Sharm El-Sheikh, Egypt, in 2022. The agreement represented a significant victory for developing and least-developed countries that have long advocated for financial mechanisms addressing climate-related damages.
The operationalisation of the fund was agreed upon at the COP29 climate conference in Baku in 2024, with commencement scheduled for January 1, 2025. However, the sudden exit of the United States, historically the world's largest emitter of greenhouse gases, has cast uncertainty over its future.
Climate Activists Call for Accountability
Climate activist Harjeet Singh strongly criticized the US withdrawal, attributing it to the policies of the Donald Trump administration. Singh remarked, "The decision by the Donald 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."
Singh emphasized that, as the largest historical emitter, the US bears substantial responsibility for global climate adversities. "We must hold them accountable and ensure they contribute their fair share towards global climate reparations," he added.
The withdrawal by the United States signals a troubling setback for global cooperation in the fight against climate change, prompting renewed calls for stronger accountability and international solidarity in addressing the climate crisis.
