US Deals Another Blow To Climate Justice, Exits Hard-Negotiated Loss and Damage Fund
The L&D Fund, agreed to at COP28 in Dubai after decades of efforts, is meant to financially compensate developing countries address impacts of climate disasters
Donald Trump-led United States, continuing its retreat from climate commitments, has dealt another blow to climate justice. The world’s biggest historical emitter has exited the Board of the Loss and Damage Fund, which was operationalised in January 2025 to financially compensate poor and vulnerable countries facing climate disasters.
In the latest order, Rebbecca Lowler, Deputy Director at the Office of Climate and Environment, wrote to Jean-Christophe Donnellier, Developed Country Co-Chair of the Fund, informing him that the US administration is withdrawing from the board “effective immediately".
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It stated: “Both the US Board Member and United States Alternate Board Member will be stepping down, not to be replaced by a US representative. Consistent with the rules of the Procedure, please convey the change to the Secretariat."
“Loss and damage" refers to adverse impacts of climate change, including loss of life, damage to infrastructure and property, crop damage, and ecosystems degradation. According to the Intergovernmental Panel on Climate Change (IPCC), developing countries have 15 times more victims of natural disasters than developed countries.
After decades of efforts, the landmark fund was finally agreed to at COP28 in Dubai in 2023 where the developed countries decided to financially compensate developing countries most vulnerable to the devastating impacts of climate change. The fund was formally operationalised on January 1, 2025.
It was a hard-won deal after 30 years of campaigning by small island nations and other developing countries. While it relies on voluntary pledges from countries, and does not legally bind them to make any contribution to the fund, several developed countries had already pledged over $661 million in voluntary contributions by the end of the Dubai conference.
“Disappointed to learn that the US has withdrawn from the Fund or responded to Loss and Damage. At a time when the world needs a concerted effort to fight the effects of climate change, the spirit of multilateralism should remain our guiding light," tweeted Ali Mohammad, Special Climate Envoy for Kenya.
Climate activist Harjeet Singh said the decision exemplifies a longstanding pattern of obstruction by the US government in securing climate finance and undermines global efforts for climate justice. “While their absence might keep the ambition of the fund from being diluted, it does not absolve the US of its responsibilities. As the largest historical emitter, we must hold them accountable, and ensure they contribute their fair share towards global climate reparations," added Singh, also founding director, Satat Sampada Climate Foundation.
“All large historical emitters have a moral and economic obligation to lead, not retreat, on climate action. It is even more imperative now, for other OECD countries to step up in their climate action," said Dr Dhruba Purkayastha from Council on Energy, Environment and Water (CEEW).
The latest action follows US’ withdrawal from the 2015 Paris Agreement — one of the most important UN climate action deals under which countries committed to limit global warming to below 2℃ above pre-industrial levels and pursue efforts to limit the increase to 1.5℃. The decision was taken by newly sworn in President Trump — a climate denier — on his first day in office this January.
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