On his first day as US president, Donald Trump declared that the USA won’t be part of the Paris Climate - the most important global effort to reduce global warming.
US President Donald Trump holds letter to the UN stating the US withdrawal from the Paris Agreement during the inaugural parade inside Capital One Arena, in Washington, DC, on January 20, 2025. (Source)
During his earlier tenure as USA President in 2020, he made the US quit the Paris Agreement, which was promptly reversed by the next US president, Joe Biden in 2020.
But now, once again, President Trump has made the USA quit the Paris Agreement, right on Day 1.
In this blog, we will try to understand what exactly the Paris Climate Agreement is, why the USA quit this global cooperation to save our Earth, and what’s the impact of this move.
What Is the Paris Agreement?
The Paris Climate Agreement aims to hold “the increase in the global average temperature to well below 2°C above pre-industrial levels” If possible, make it to 1.5 °°C.
It’s part of the United Nations Framework Convention on Climate and was formally signed by 196 nations on December 12, 2015. It came into force on November 4, 2016.
When it was signed, it was mandatory to have 55 nations ratify the agreement, which is 55% of the global greenhouse gas emission nations.
As of February 23, 193 nations that are part of the United Nations Framework Convention on Climate Change (UNFCCC) have ratified the Paris Climate Agreement.
Of the major 1emitter nations that have not ratified the agreement is Iran. And now the USA. Yemen and Libya are the other nations that have not ratified the agreement.
USA withdrew from the agreement in 2020 under Donald Trump, rejoined in 2021 under Joe Biden, and then again withdrew in 2025, as Trump became the US President.
This treaty to reduce global temperature covers climate change mitigation, adaptation, and finance.
Main Features Of the Paris Climate Agreement
Temperature Goals: Aim to limit global warming to well below 2°C above pre-industrial levels, with efforts to limit the increase to 1.5°C.
Nationally Determined Contributions (NDCs): Each country sets its own emissions reduction targets, which must be updated every five years to reflect increased ambition.
Common but Differentiated Responsibilities: Recognizes that countries have different capabilities and responsibilities, particularly emphasizing support for developing nations.
Global Stocktake: A process established to assess collective progress towards achieving the agreement's goals every five years, starting in 2023.
Financial Support: Developed countries are obligated to provide financial resources to assist developing countries in their climate actions, including technology transfer and capacity building.
Adaptation Focus: Emphasizes enhancing adaptive capacity and resilience to climate impacts, alongside mitigation efforts.
Sustainable Development Mechanism: Introduces a mechanism to promote sustainable development while reducing greenhouse gas emissions.
Legally Binding Framework: While the agreement is legally binding, specific targets are not imposed; instead, countries voluntarily commit to their NDCs.
Why Did Trump Leave the Paris Climate Agreement: $2 Trillion Opportunity Destroyed
During a speech at Capital One Arena in Washington, DC, Donald Trump declared The Paris Climate Agreement as an “unfair, one-sided Paris climate accord rip-off”.
He said, "We will drill, baby, drill,”
U.S. President Donald Trump holds an executive order announcing the U.S. withdrawal from the Paris Agreement, he just signed during the inaugural parade inside Capital One Arena, in Washington, DC, on January 20, 2025.Jim Watson–AFP via Getty Images.
His intentions are very clear: Stop the clean energy movement, and increase oil and gas exploration.
This comes at a time when the global surface temperature rose more than 1.5 °C, the first time in history.
During that speech, he said “We will bring prices down, fill our strategic reserves up again, right to the top, and export American energy all over the world,"
This clearly means that the USA, which is the world’s biggest emitter of greenhouse gas emissions, will now emit more greenhouse gas, and encourage other nations like Argentina to follow suit.
Impact Of USA Withdrawing From The Paris Agreement: $2 Trillion Opportunity Lost
USA is leaving a $2 trillion clean energy mission, and ensuring that greenhouse emissions continue to rise. Here is the impact:
Global Influence and Credibility
Diminished Diplomatic Influence
The U.S. withdrawal may undermine its credibility in international climate diplomacy, reducing its ability to influence global environmental policies and hold other nations accountable for their commitments under the agreement.
As a major greenhouse gas emitter, the U.S. stepping back from the accord sends a negative signal about its leadership role in addressing climate change.
Competitive Disadvantage
The decision could allow countries like China and members of the European Union to gain a competitive edge in the rapidly growing clean energy market. Experts warn that the U.S. risks missing out on a trillion-dollar renewable energy boom as global investments in clean technologies surge.
Domestic Climate Policy
Impact on Local Initiatives
While the federal government may withdraw from international commitments, many U.S. states, cities, and businesses are expected to continue pursuing climate action independently. Initiatives like the Inflation Reduction Act will still drive clean energy investments domestically.
Increased Emissions
Analysts predict that rolling back climate measures could lead to an increase in U.S. emissions by up to 4 billion metric tons of CO2 equivalent by 2030 compared to previous projections under President Biden's administration39. This could exacerbate extreme weather events, such as wildfires and hurricanes, which have already been devastating parts of the country.
Economic Consequences
Financial Implications
The withdrawal may limit U.S. financial contributions to global climate initiatives, affecting support for developing countries in their mitigation and adaptation efforts. This could hinder global progress toward achieving climate targets set by the Paris Agreement.
Long-Term Economic Risks
By not participating in the Paris Agreement, the U.S. may forfeit its leadership in shaping policies that promote sustainable economic growth through clean energy technologies. The International Energy Agency has projected that global investments in clean energy technologies could exceed $2 trillion by 2035, highlighting a potential economic opportunity that the U.S. might miss out on.
Conclusion
The USA's 2025 withdrawal from the Paris Agreement, which covers 193 nations, threatens to increase US emissions by 4 billion metric tons of CO2 by 2030.
With global temperatures already exceeding 1.5°C for the first time, this decision by the world's largest greenhouse gas emitter could undermine international climate efforts.
While domestic programs like the Inflation Reduction Act continue, the US risks missing out on the projected $2 trillion clean energy market by 2035.
This marks America's second withdrawal, following the 2020-2021 period, potentially ceding leadership to China and the EU in global climate action.
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