The United States has officially withdrawn from the United Nations’ climate damage fund board, raising concerns about its commitment to climate finance and global cooperation. The decision, revealed in a letter from U.S. representative Rebecca Lawlor on March 4, casts uncertainty over its pledged $17.5 million contribution. 

The fund, established to support developing nations affected by climate disasters, has secured $741 million in pledges and is set to finance projects addressing climate-related damage such as droughts and floods. The U.S. withdrawal aligns with previous climate policy shifts, including the Trump administration’s rollback of environmental commitments, exiting the Paris Agreement, and reducing funding for global climate initiatives. 

Critics argue that the U.S., as the world’s largest historical carbon emitter, has a responsibility to contribute to climate reparations. Climate activist Harjeet Singh stated, “The United States bears a significant share of the blame for the climate adversities affecting vulnerable populations worldwide.” The move raises concerns about the future of global climate financing, as developing nations increasingly demand stronger action from wealthier economies. 

While the U.S. Treasury Department has not clarified whether the withdrawal applies solely to the board position or includes a complete exit from the fund, the World Bank will continue to oversee its administration for now. However, the decision signals potential obstacles for international climate collaboration, particularly as nations push for more ambitious financing commitments at upcoming climate negotiations. 

This withdrawal underscores broader tensions in climate diplomacy, with growing calls for high-emitting nations to take greater responsibility in supporting carbon-neutral strategies and ESG-driven initiatives aimed at protecting the most climate-vulnerable populations. 

Sources : 

https://esgnews.com/united-states-withdraws-from-u-n-climate-damage-fund/  

https://www.voanews.com/a/us-pulls-out-of-climate-damage-compensation-fund-/8005960.html 

https://www.lemonde.fr/en/environment/article/2025/03/11/us-withdraws-from-landmark-climate-loss-and-damage-fund_6739022_114.html 

https://www.reuters.com/world/us/united-states-quits-board-un-climate-damage-fund-letter-shows-2025-03-07/