US Exit from Loss and Damage Fund: A Blow to Climate Justice

The decision by the US administration under former President Donald Trump to withdraw from the Loss and Damage Fund (LDF) has left many in disbelief. Established in 2022 after years of debate over climate justice, the fund had previously seen the US, under the Biden Administration, pledge $17.5 million in contributions.

In a letter dated March 4, 2025, Rebecca Lawlor, Deputy Director of the Office of Climate & Environment and Board Member of the Fund for Responding to Loss and Damage, announced the US’s immediate withdrawal from the fund’s board.

This move has sparked disappointment and frustration, particularly as climate change impacts intensify worldwide. Recent floods in Saudi Arabia, France, Botswana, and South Africa’s KwaZulu-Natal region, which caused significant casualties, highlight the urgency of addressing climate-related disasters.

The African Group of Negotiators, led by Chair Ali Mohammed, criticized the decision, stating that the US, as the nation with the largest historical responsibility for climate change, has jeopardized critical support for vulnerable countries facing irreversible climate impacts.

Ambassador Mohammed emphasized the need for global unity in combating climate change, stressing that multilateralism must remain a guiding principle.

Despite pledges totaling $741.42 million to the Loss and Damage Fund, according to the United Nations, experts argue that this amount falls short given the scale of climate-related disasters.

This withdrawal follows the US’s recent exit from the 2015 Paris Agreement, where member states committed to reducing emissions and limiting global temperature rise to 1.5°C.

Scientific evidence shows that burning fossil fuels has caused widespread damage to livelihoods, communities, and ecosystems globally, disproportionately affecting regions with little historical responsibility for climate change.

Loss and Damage Fund
An image of buildings devastated by a flood wave unprecedented ….Image courtesy Euronews

Mohamed Adow, founder of Power Shift Africa, expressed deep disappointment, stating, “This decision will result in great suffering for some of the poorest and most vulnerable people in the world. These communities have contributed the least to the climate crisis they now endure.”

The Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6) warns that climate impacts will grow in intensity and frequency, doubling losses in livelihoods, infrastructure, and lives. Particularly the Working Group II report on Impacts, Adaptation, and Vulnerability, emphasizes that climate change is already causing widespread and severe impacts, and these will intensify with further warming.

Due to these statistics, proactive measures, informed by early preparedness, are essential to mitigate the effects of heavy rainfall, floods, heatwaves, and droughts.

Joseph Sikulu, Pacific Managing Director of 350.org, noted that withdrawing from global climate agreements is easier for nations not directly facing the consequences of climate change. “It’s different when you’re not rebuilding homes destroyed by cyclones or relocating ancestral graves due to rising sea levels,” he said.

For the Global South, the Loss and Damage Fund is a response to calls for assistance in addressing climate-related losses. However, climate justice remains a contentious issue, with developed nations resisting the fund being framed as reparations or environmental justice.

Savio Carvalho, Head of Regions at 350.org, urged other nations to increase their contributions and commitments despite the US withdrawal. “The global community must rally together to ensure the fund’s effectiveness in addressing the climate crisis and supporting those most affected,” Carvalho said.

This development follows the US’s recent decision to withdraw from the Just Energy Transition Partnership agreements, established under the Biden administration to help countries like Indonesia, South Africa, Vietnam, and Senegal transition away from coal.

These geopolitical shifts highlight strategic power plays and financial interests at the highest levels. The question remains: Will the most vulnerable be supported, or will they be left to fend for themselves?

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