In a move that has surprised few, US President Donald Trump has signed an executive order withdrawing the United States once again from the landmark 2015 Paris Agreement. This decision underscores his administration’s commitment to traditional fossil fuels and signals a shift away from the climate policies of previous administrations.
Trump’s longstanding skepticism towards climate change, influenced by powerful fossil fuel interest groups and the rising energy demands of advancements in artificial intelligence, has culminated in this second withdrawal. Amid intensifying great-power competition and geopolitical tensions, his reversal of the US climate agenda appears to align with his domestic and international policy priorities.
The impact of this decision on global climate governance and the energy transition is expected to vary. The withdrawal may hinder the implementation of the Paris Agreement, particularly as countries are scheduled to set new climate targets by February 2025. With the US stepping back, there is concern that other nations may adopt a wait-and-see approach, potentially diminishing their political will to advance climate actions in the short term.
Additionally, the move is likely to reduce climate financing and weaken the ability of developing countries to meet their commitments. The immediate cancellation of the US international climate finance plan creates a significant funding gap that other developed countries may struggle to fill promptly. This shortfall may impede investments in clean energy technologies and adaptation efforts in the developing world.
However, despite these challenges, many experts believe that the global momentum towards addressing climate change and transitioning to clean energy remains strong. Fatih Birol, Executive Director of the International Energy Agency (IEA), has stated that the energy transition will not be halted by the US withdrawal.
The global context today differs significantly from when Trump first withdrew the US from the agreement. Since 2015, countries have spent nearly a decade implementing domestic emission reduction actions and boosting their economies through clean energy development. Investments in clean energy have steadily increased, with global installed renewable energy capacity nearly doubling from 1,985 GW in 2015 to 3,865 GW in 2023, according to the International Renewable Energy Agency (IRENA).
Moreover, the cost of clean energy technologies has continued to decline. Between 2010 and 2023, the cost of electricity from photovoltaic power plants fell by 90 percent, while the cost of wind power dropped by 70 percent. These economic advantages reinforce the appeal of clean energy beyond environmental benefits.
In this context, the US withdrawal may ultimately disadvantage American companies by creating policy uncertainties that reduce investment efficiency. This could weaken the United States’ competitiveness and global influence in the burgeoning clean energy sector.
While President Trump’s decision presents obstacles, the economic and environmental imperatives driving the global clean energy transition are likely to continue propelling forward progress. The international community’s commitment to combating climate change appears resilient in the face of political shifts.
Reference(s):
Trump's second withdrawal from Paris Agreement to have limited impact
cgtn.com
