Syllabus: Effect of policies and politics of developed and developing countries on India’s interests
Background
- U.S. President Donald Trump issued a presidential memorandum withdrawing from 66 international organisations.
- These include the UN Framework Convention on Climate Change (UNFCCC) and the Intergovernmental Panel on Climate Change (IPCC).
- The move follows an executive order dated February 4, 2025, reviewing treaties against U.S. interests.
Impact of Exit from UNFCCC
- The UNFCCC anchors almost all multilateral climate diplomacy and monitoring frameworks.
- Exiting removes the U.S. from the emissions reporting and transparency system under the UNFCCC.
- It also implies automatic withdrawal from the Paris Agreement, which operates under the UNFCCC.
- The U.S. will no longer be a party to COP negotiations, losing formal negotiating rights.
- It may still attend some meetings, but only as an observer without legal standing.
Implications for Climate Finance
- The UNFCCC oversees finance through bodies like the Green Climate Fund and Global Environment Facility.
- U.S. exit reduces its influence over climate finance governance and makes withholding funds politically easier.
- It also increases policy uncertainty for U.S. companies, raising investment and trade risks.
- Foreign partners may hesitate to enter energy, minerals, and development deals with Washington.
Role of the IPCC
- The IPCC synthesises global scientific research on climate change impacts and policy options.
- U.S. exit weakens its role in shaping shared scientific references for negotiations.
- American experts may still contribute as reviewers or through non-government nominations.
Global Repercussions
- Withdrawal by a high-emission, wealthy country weakens trust in reciprocal climate commitments.
- It may encourage other reluctant governments to delay or dilute climate action.
- Poorer countries could harden positions due to perceived unfair burden-sharing.
Finance Gap and Future Risks
- Developed countries mobilised $115.9 billion in 2022, crossing the earlier $100 billion goal.
- Adaptation needs are projected at $310–365 billion annually by 2035, but only $26 billion flowed in 2023.
- COP29 (2024) set a new target of $300 billion per year by 2035.
- U.S. exit undermines credibility and feasibility of meeting these global finance commitments.

