The White House has confirmed President Donald Trump’s decision to withdraw the United States from the Paris Agreement for the second time during his administration. This latest development in the Trump Paris Agreement saga places the US alongside Libya, Yemen, and Iran as the only countries outside the landmark global climate pact. The decision has sparked widespread concern, signalling a deprioritisation of sustainability and underscoring how political shifts can undermine coordinated global efforts to combat the escalating climate crisis.
Trump Administration’s criticism of the Paris Agreement
The Paris Agreement was signed by 196 parties in 2015 and represents a unified global commitment to limit global warming to below 2°C, ideally 1.5°C, above pre-industrial levels. The Trump administration criticised the Agreement, citing potential economic drawbacks and disproportionate obligations on the part of the United States.
Mike Pompeo, US Secretary of State, said the US Government remaining in the Agreement would be an “unfair economic burden imposed on American workers, businesses and taxpayers.” The news that Trump has withdrawn from the Paris Agreement comes just a month after the Biden Administration shared an updated nationally determined contribution (NDC) under the Agreement.
The US had committed to reducing net greenhouse gas emissions by 61 to 66 percent below 2005 levels by 2035. This news also comes against the backdrop of the catastrophic wildfires in California, which are estimated to have caused between $52 and $57 billion in economic damages.
Backlash from the Trump Paris Agreement exit
Unsurprisingly, the Trump Paris Agreement withdrawal has been largely met with negativity, with former US Vice President Al Gore posting on Twitter: “No one person or party can stop our momentum to solve the climate crisis. Those who try will be remembered for their complacency, complicity, and mendacity in attempting to sacrifice the planet for their greed.”
In light of the news, experts have also come to the forefront, warning that as the planet continues to warm, extreme weather events like hurricanes, wildfires, and flooding will only increase in frequency and severity. This will bring substantial environmental and economic costs each year. The US already ranks as the second-largest carbon emitter, after China, and this withdrawal raises major concerns not only for the US but international efforts to combat climate change.
Despite the Trump Administration’s concern that the Paris Agreement will be a financial burden, a report examining the cost of extreme weather events over the past decade found that the US suffered the greatest economic losses at $935 billion over a 10-year period.
Moreover, other research suggests that future climate-related events could drive more than 100 million people into poverty by 2030. The departure from the Agreement will take effect one year after the Trump Administration formally notifies the UN. Even after its withdrawal, the US may still attend annual climate summits like COP, however, its influence on global climate policy is expected to diminish considerably.
Impact on businesses: Recapping on the Trump Paris Agreement withdrawal in 2017
The Trump Paris Agreement withdrawal in 2017 had far-reaching negative consequences, both domestically and internationally. Globally, it undermined international climate cooperation, weakening momentum toward achieving the Agreement’s goals of limiting global temperature rise.
The US withdrawal signalled a retreat from global leadership, damaging the nation’s credibility as a reliable partner in addressing climate challenges and emboldening other countries to delay or weaken their commitments. This loss of leadership also slowed global progress on critical sustainability goals, particularly as the US, one of the largest greenhouse gas emitters, played a pivotal role in meeting global targets.
Domestically, the withdrawal created significant setbacks for climate action. Federal support for renewable energy and emissions reduction policies dwindled, delaying the transition to a low-carbon economy and increasing future decarbonisation costs. US businesses faced reputational risks and operational challenges as they navigated conflicting domestic policies and global ESG expectations.
Additionally, fragmented state and city-led climate initiatives emerged in the absence of federal leadership, creating an inconsistent regulatory landscape. Economically, the move risked the US falling behind in global markets for green technologies and trade partnerships prioritising sustainability. Meanwhile, delayed investment in climate resilience left the nation more vulnerable to climate risks. Ultimately, the decision marked a significant step backwards in global and domestic climate progress, with long-term consequences that rejoining the Agreement in 2021 could only begin to address.
Conclusion
The decision to withdraw the United States from the Paris Agreement is a stark reminder of how political shifts can derail global progress on climate action. As the world’s second-largest carbon emitter, the US has a responsibility to lead, not retreat. This decision not only undermines international cooperation but shifts the burden onto other nations and signals a lack of commitment to addressing the climate crisis.
While governments falter, businesses have the power to step up. Embracing sustainability builds stakeholder trust, reduces costs, drives innovation, and positions companies as resilient leaders in a changing world. The climate crisis won’t wait, and neither can we. The first step is equipping your organisation with the knowledge to act. Our sustainability training for employees empowers your workforce to meet rising demands, improve efficiency, and lead with confidence in a climate-conscious future.
