17 Feb US Withdrawal from the Paris Agreement: Impact and Next Steps

The United States has once again decided to leave the Paris Agreement, a move that has drawn sharp criticism from environmental experts, world leaders, and businesses. On January 20, 2025, President Donald Trump signed an executive order titled “Putting America First in International Environmental Agreements.” This order officially starts the process of removing the US from the global climate pact.

This decision comes at a time when the world is dealing with rising global temperatures, stronger storms, and worsening droughts. The Paris Agreement was designed to slow down climate change and bring nations together to cut carbon emissions. Many fear that the US withdrawal could slow down international climate progress and reduce trust in global agreements.

The move also raises concerns about how it will affect the US economy, trade relations, and future climate policies. While the government believes leaving the agreement will protect jobs and reduce costs, many experts argue that it could harm US leadership in clean energy and weaken its influence in global climate talks.

In this article, we will explore the implications for the president’s decision on the global climate efforts, and also the US climate change.

What is the Paris Agreement?

The Paris Agreement was created in 2015 as part of the United Nations Framework Convention on Climate Change (UNFCCC). Almost 200 countries agreed to take action to keep global temperatures from rising above 2°C, with an ideal goal of keeping it below 1.5°C. Each country set its own targets, known as Nationally Determined Contributions (NDCs), to reduce greenhouse gas emissions. These targets had to be updated every five years.

The US, under President Joe Biden, had pledged to reduce emissions by 61-66% below 2005 levels by 2035. The country had also promised billions of dollars in climate finance to help developing nations move toward cleaner energy.

However, Trump’s administration sees the agreement as unfair. It argues that the rules force the US to reduce emissions while allowing many other high emitting countries to continue polluting. The government also believes that staying in the agreement would harm industries like coal, oil, and gas, leading to job losses and economic decline..

Why Did the US Withdraw?

The Trump administration has long opposed international climate agreements. In 2017, during Trump’s first term, he tried to pull the US out of the Paris Agreement. That attempt failed because the agreement had a four-year waiting period before any country could officially leave.

This time, the process is faster. The executive order directs the US Ambassador to the United Nations to send a formal withdrawal notice. The US will officially be out of the agreement by January 2026.

President Trump justified the withdrawal on two primary grounds:

1. Economic Concerns: The administration argues that remaining in the Paris Agreement would cost the US economy billions of dollars, harming industries such as coal and oil while benefiting competing economies.
2. Sovereignty and Fairness: Trump has repeatedly labeled the agreement as “one-sided,” claiming it disproportionately impacts the US while allowing major emitters like China and India to operate with more leniency.

The government argues that the agreement is costly and unfair to the US economy. It claims that regulations on carbon emissions hurt businesses, drive up energy costs, and make American industries less competitive. By leaving the agreement, the US will no longer be required to meet its NDC goals or contribute money to climate finance programs that help developing countries.

President Trump has also canceled the US International Climate Finance Plan, which was created under President Biden to support clean energy projects in poorer nations. The new policy states that the US will no longer fund climate programs outside its borders.

Immediate Impacts of the US Withdrawal

The decision to exit the Paris Agreement has several immediate consequences, among which includes;

1. Weakened Global Climate Diplomacy

• The US withdrawal creates a leadership vacuum in international climate negotiations.
• Without US participation, China and the EU are likely to take the lead in shaping future global climate policies, potentially sidelining American influence.
• Other countries may feel less pressure to meet their commitments, knowing that a major emitter is no longer bound by the agreement.

2. Economic and Trade Implications

• The clean energy market is rapidly expanding, with trillions of dollars in investment opportunities. By exiting, the US risks falling behind in the global race for renewable energy innovation.
• The European Union and other major economies might impose carbon tariffs on US goods, increasing costs for American exporters.

3. Loss of Climate Finance Contributions

• The $1.3 trillion global climate finance goal by 2035—agreed upon in Baku—becomes significantly harder to achieve.
• Developing nations relying on US contributions for renewable energy projects, disaster resilience, and adaptation strategies will face financial setbacks.

4. Domestic Climate Policy Rollbacks

• Trump’s “Unleashing American Energy” Executive Order disbands key regulatory bodies, such as the Interagency Working Group on the Social Cost of Greenhouse Gases.
• Policies aimed at reducing carbon emissions—such as fuel efficiency standards and power plant regulations—are likely to be weakened or repealed.

Lessons from the First Withdrawal

This is not the first time the US has attempted to exit the Paris Agreement. In 2017, President Trump announced his decision to withdraw, but the process took four years to complete. During that time, many US states, cities, and businesses continued to uphold their climate commitments.

California, New York, and other states expanded their renewable energy programs, despite the federal government pulling back. Thirty states committed to reducing emissions, showing that climate action could still happen at the local level.

Globally, other nations increased their climate efforts in response to the US withdrawal. The EU and China took on stronger climate leadership roles, with China investing heavily in solar and wind energy.

This history suggests that while federal withdrawal weakens US climate policy, action at the state, local, and international levels may continue.

What’s Next for the US and Global Climate Action?

Despite the US withdrawal, climate efforts within the country will not stop completely. Many states, cities, and corporations have already pledged to continue their emission reduction goals.

Large companies like Microsoft, Tesla, and Apple are investing in carbon-neutral technologies. Even some Republican-led states are embracing renewable energy due to its economic benefits.

On the international stage, China and the EU will likely push forward with new policies to meet their climate targets. The United Nations has also stated that it will work harder to bring more countries together in addressing climate change.

There is also a chance that a future US administration could rejoin the agreement. In 2021, President Biden reversed Trump’s decision and re-entered the Paris Agreement within a few months of taking office. If political leadership changes again, the US may return once more.

A Step Backward, But Not the End

The US withdrawal from the Paris Agreement is a major shift in climate policy. While the government argues that it will save jobs and protect the economy, experts warn that it may harm US influence, slow down global progress, and weaken clean energy investments.

Despite this setback, climate action will continue. States, cities, businesses, and international partners are expected to push forward with new sustainability efforts. While the withdrawal slows things down, it does not completely derail global climate goals.

As the world continues to face record-breaking heatwaves, rising sea levels, and severe weather disasters, the big question remains: Will the US eventually return to the fight against climate change, or will it remain on the sidelines? Only time will tell.