Overview

• The Trump administration has paused U.S. foreign aid and plans to eliminate most USAID projects, potentially cutting $60 billion in aid, including $2.8 billion in climate finance from 2023.
• Funding for the UN Green Climate Fund has been slashed by $4 billion, reducing U.S. contributions to levels below much smaller economies like Sweden.
• Experts warn that these cuts could create a significant gap in meeting the $300 billion global climate finance goal agreed upon at COP29 last year.
• USAID, which handles a significant portion of U.S. climate finance, has been targeted for closure, raising concerns about the impact on grant-based funding that supports adaptation in developing countries.
• The administration’s withdrawal from international climate initiatives, including the Paris Agreement and the UN loss and damage fund, signals a shift in U.S. priorities away from global climate commitments.