In a significant move that marks a sharp departure from global climate change initiatives, the United States has officially pulled out of the Green Climate Fund (GCF). The announcement was made by U.S. Treasury Secretary Scott Bessent, who labelled the fund a "radical" organisation.
A Decision Aligned with Broader UN Withdrawal
The decision to exit the GCF is not an isolated one. It comes directly in line with the Trump administration's earlier resolution to withdraw from the United Nations Framework Convention on Climate Change (UNFCCC). The Treasury Department has formally notified the GCF of the United States' immediate withdrawal and its decision to step down from its seat on the GCF Board.
In an official statement, Secretary Scott Bessent was unequivocal in his criticism. "Our nation will no longer fund radical organizations like the GCF whose goals run contrary to the fact that affordable, reliable energy is fundamental to economic growth and poverty reduction," he stated. This statement underscores the administration's core argument that environmental goals should not come at the expense of energy affordability and economic development.
The Rationale Behind the Withdrawal
The Green Climate Fund was established as a key financial mechanism under the UNFCCC, designed to help developing countries adapt to climate impacts and reduce emissions. However, the current U.S. administration views continued participation as misaligned with its national priorities.
The Treasury's statement clarified that the Trump Administration is firmly committed to advancing all sources of energy that are both affordable and reliable. It views these as the bedrock for spurring economic growth and lifting people out of poverty. Since the GCF was created to support the objectives of the UNFCCC, and the U.S. is leaving that overarching convention, its involvement in the fund was deemed inconsistent.
Global Implications and Future Outlook
This withdrawal represents a major shift in the global climate finance landscape. The United States was once a significant pledged contributor to the fund, and its exit creates a substantial financial gap and raises questions about leadership in international climate cooperation.
The move reinforces the Trump administration's "America First" approach to energy and environmental policy, prioritising domestic fossil fuel industries and economic concerns over multilateral climate agreements. It leaves other developed nations and the private sector with the challenge of mobilising the resources needed to meet the GCF's ambitious goals for supporting vulnerable nations facing the brunt of climate change.
