# US exits fund that compensates poorer countries for global heating

Trump pulls out of Cop28 loss and damage deal that recognises harms done by richer, polluting economies to vulnerable nations

The  has withdrawn the US from a global agreement under which the developed nations most responsible for the climate crisis pledged to partly compensate developing countries for irreversible harms caused by global heating.

The loss and damage fund was agreed at the  UN climate summit in late 2023 – a hard-won victory after years of diplomatic and grassroots advocacy by developing nations that bear the brunt of the climate crisis despite having contributed the least to greenhouse gas emissions. The fund signalled a commitment by developed, polluting countries to provide financial support for some of the irreversible economic and noneconomic losses from sea level rise, desertification, drought and floods already happening.

The US has a long record of delay tactics and obstructionism, and had so far pledged only $17.5m (£13.5m) to the loss and damage fund, which became operational on 1 January this year. Now the US, the biggest historical emitter of greenhouse gases, will no longer participate in the initiative.

“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,” said Rebecca Lawlor, the deputy director at the US Office of Climate and Environment, in a letter to the fund.

The decision to abandon the loss and damage fund was condemned by climate advocates from the global north and south.

“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,” said Mohamed Adow, a climate policy analyst and director of the thinktank Power Shift Africa. “We urge the United States to reconsider its position in the interest of the planet and future generations … this regrettable decision risks undermining collective progress and erodes the trust necessary for effective international cooperation.”

Rachel Rose Jackson, a research director at Corporate Accountability, said: “Let’s be clear – the US has never been a climate champion. Yet the Trump administration’s anti-climate action agenda – including its withdrawal from the loss and damage fund board – is a wrecking ball made of dynamite. It’s dangerous, it’s malicious and it will destroy lives.

“We cannot allow the Trump administration, and the greedy corporations pulling the strings, to get away with destroying the planet. It’s time for the United States to pay up its climate debt and do its fair share of climate action.”

Ali Mohamed, the chair of the African Group of Negotiators, a coalition of African nations participating in UN climate negotiations, said: “This decision, made by the nation with the largest historical responsibility for climate change, jeopardises vital support for vulnerable countries facing irreversible climate impacts.”

Trump has already pulled out of the 2015 Paris climate accords – for the second time after the US was reinstated under Joe Biden – claiming the international agreement on cutting greenhouse gas emissions and preventing climate catastrophe ripped off the US.

“I’m immediately withdrawing from the unfair, one-sided Paris climate accord rip-off,” he said, signing the executive order on his first day in office. “The United States will not sabotage our own industries while China pollutes with impunity.”

China currently ranks as the top greenhouse gas emitter but is also the global leader in the manufacture and deployment of renewable energy. The US is the largest historical emitter and, while emissions have fallen alongside reductions in coal, it has become the  by a huge margin in recent years.

Record-breaking ocean and atmospheric temperatures have caused chaos around the world and across the US, including devastating wildfires in Los Angeles and deadly flooding across Florida and southern Appalachia. Meanwhile, several of Trump’s policies, including his pledge to “drill, baby drill”, dismantle federal agencies, and impose tariffs that threaten a trade war, risk derailing the burgeoning US renewables sector.

The loss and damage fund is a work in progress. As of late January,  a combined total of $741m – a  losses developing countries are facing from global heating every year.

The US withdrawal appears to be another rejection of global diplomacy and the reality of the climate crisis.

Harjeet Singh, a climate activist and founding director of the Delhi-based Satat Sampada Climate Foundation, said: “The decision by the Trump administration exemplifies a longstanding pattern of obstruction by the US government in securing necessary finance for addressing climate impacts,  undermines global efforts to deliver climate justice.

“As the largest historical emitter, the United States bears a significant share of the blame for the climate adversities affecting vulnerable populations worldwide. We must hold them accountable and ensure they contribute their fair share towards global climate reparations.”
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