Trump Administration Withdraws from Climate Compensation Agreement

By Faridat Salifu
The Trump administration has officially withdrawn the United States from a pivotal global agreement designed to provide compensation to developing countries adversely affected by climate change.
This decision impacts the loss and damage fund established during the Cop28 UN climate summit in late 2023, a significant milestone achieved after years of advocacy by nations that contribute minimally to greenhouse gas emissions but suffer the most severe consequences of climate change.
The loss and damage fund aims to address irreversible harms caused by global heating, such as rising sea levels, desertification, drought, and extreme weather events. While the fund became operational on January 1, the US had only pledged $17.5 million, reflecting a long history of delays and obstructionist tactics in climate negotiations.
The withdrawal means that the US, historically the largest emitter of greenhouse gases, will no longer participate in this critical initiative.
This move has provoked widespread criticism from climate advocates both in the global north and south.
Mohamed Adow, a climate policy analyst, condemned the decision as a setback for international cooperation, stating, “The US decision to step away from this commitment at such a crucial moment sends the wrong message to the global community and to those in dire need of assistance.” He urged the United States to reconsider its position, emphasizing the importance of collective progress in addressing climate issues.
Rachel Rose Jackson, a research director at Corporate Accountability, characterized the Trump administration’s actions as detrimental, describing them as “a wrecking ball made of dynamite” that risks further destabilizing vulnerable communities. She called for the US to fulfill its climate obligations and contribute to global efforts to mitigate climate impacts.
The chair of the African Group of Negotiators, Ali Mohamed, highlighted that this decision jeopardizes vital support for nations facing irreversible climate impacts, particularly those in Africa that have historically contributed little to global emissions. He criticized the US for abandoning its responsibilities as the nation with the largest historical accountability for climate change.
This withdrawal from the loss and damage fund follows a broader trend of US disengagement from international climate agreements, including Trump’s earlier exit from the 2015 Paris Agreement.
At that time, he described the accord as “unfair” and claimed it disadvantaged American industries while allowing countries like China to continue emitting without accountability. China, while currently the largest emitter of greenhouse gases, is also a leader in renewable energy development.
As record-breaking ocean and atmospheric temperatures contribute to increasing climate-related disasters—such as devastating wildfires in California and severe flooding in Florida—the implications of the US withdrawal grow more pressing.
Climate activists argue that the US’s actions not only hinder necessary funding for climate adaptation but also risk undermining global diplomatic efforts to address climate change collaboratively.
As of late January, 27 countries had pledged a combined total of $741 million to the loss and damage fund, which represents only a fraction of the estimated irreversible losses developing nations face due to climate change each year.
Harjeet Singh, a prominent climate activist, remarked that the US’s withdrawal exemplifies a long-standing pattern of obstruction by the American government in securing essential funding for climate initiatives. He stressed the need for accountability, urging the US to contribute its fair share toward global climate reparations.
As the world confronts the escalating climate crisis, the future of the loss and damage fund hangs in the balance, highlighting the urgent need for cooperation and support for the most vulnerable populations.