• U.S. withdraws immediately from the UN climate damage fund’s leadership, sparking questions about its $17.5M pledge.
• Global climate financing at risk as the fund prepares to launch projects for disaster-hit developing nations in 2024.
• Critics warn the move undermines U.S. responsibility as the world’s largest historical carbon emitter.

The United States has officially withdrawn from the board of the United Nations’ “loss and damage” fund, designed to support nations devastated by climate-driven disasters. This decision was disclosed in a letter from U.S. representative Rebecca Lawlor, dated March 4.

“Both the United States Board Member and United States Alternate Board Member will be stepping down, not to be replaced by a U.S. representative,” Lawlor wrote to fund co-chair Jean-Christophe Donnellier.

Why it matters:

The U.S. withdrawal, effective immediately, raises uncertainty over its $17.5 million contribution. The fund, hosted by the World Bank, has so far secured $741 million in pledges and is set to finance projects this year to help vulnerable nations recover from irreversible climate damage, such as droughts and floods.

Context:

• The move aligns with President Donald Trump’s broader rollback of U.S. climate commitments, including exiting the Paris Agreement and cutting funding aimed at reducing coal dependency.
• Nearly 200 countries agreed to launch the fund at COP28 in 2023—a milestone for developing nations after years of advocacy for climate reparations.

RELATED ARTICLE: COP28 to focus on loss and damage funding, with EU and UAE pledging support

What’s not clear:

The U.S. Treasury Department has not clarified whether the withdrawal includes a full pull-out from the fund itself or just the board role. The hosting arrangement with the World Bank remains unchanged—for now.

The Critics’ View:

Climate activists argue the U.S. is shirking its duty.
“As the largest historical emitter, the United States bears a significant share of the blame for the climate adversities affecting vulnerable populations worldwide,” said Harjeet Singh, director of the Satat Sampada Climate Foundation.

Zoom Out:

The U.S. retreat from multilateral climate efforts signals potential challenges ahead for global cooperation on climate finance—at a time when developing nations are demanding more action from wealthier economies.

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