U.S. Announces Immediate Withdrawal from Green Climate Fund

U.S. Exits Green Climate Fund Amid Broader International Pullback

The United States has announced its immediate withdrawal from the Green Climate Fund (GCF) and its seat on the GCF Board, effective January 8, 2026. The U.S. Department of the Treasury formally notified the GCF of this decision, which aligns with the Trump Administration's broader policy to exit the UN Framework Convention on Climate Change (UNFCCC).

U.S. Secretary of the Treasury Scott Bessent stated that the nation 'will no longer fund radical organizations like the GCF whose goals run contrary to the fact that affordable, reliable energy is fundamental to economic growth and poverty reduction.' The administration views continued participation in the GCF as inconsistent with its priorities, which emphasize advancing affordable and reliable energy sources.

Context of the Withdrawal

The withdrawal from the GCF follows a Presidential Memorandum signed by President Donald J. Trump on January 7, 2026. This memorandum directed the withdrawal of the United States from numerous international organizations, conventions, and treaties, including the UNFCCC. This move is part of a wider strategy by the Trump administration to disengage from what it perceives as international bodies that do not serve American interests. The administration had previously initiated a withdrawal from the Paris Agreement during its first term and again in January 2025.

The Green Climate Fund, headquartered in Songdo, Incheon, South Korea, was established in 2010 under the UNFCCC. It serves as the world's largest dedicated multilateral climate fund, aiming to assist developing countries in their efforts toward climate change adaptation and mitigation. Its objective is to promote a paradigm shift towards low-emission and climate-resilient development.

U.S. Contributions and GCF Response

Historically, the U.S. has played a significant role in the GCF. Under the Obama administration, the U.S. pledged $3 billion to the fund in 2014, with $2 billion of that amount subsequently delivered. However, the Trump administration had previously canceled $4 billion in pledged funds for the GCF. More recently, the Biden-Harris Administration had announced a multi-year pledge of $3 billion for the GCF's Second Replenishment (2024-2027) in December 2023, indicating a period of re-engagement before the current withdrawal.

Upon receiving notification of the U.S. withdrawal, the GCF issued a statement confirming that the vacancy of the Board seat would not affect its operations or the functioning of the Board. The fund reaffirmed its commitment to combating climate change, which it considers a fundamental threat to international development, security, and long-term prosperity.

International Implications

The decision to withdraw from the GCF and the UNFCCC has drawn international attention. Critics suggest that such actions could weaken global climate cooperation, diminish economic resilience, and impact clean energy investments. The U.S. annual contributions typically account for approximately 22% of the UNFCCC secretariat's core budget, raising concerns about potential funding gaps.