US Withdrawal from Loss and Damage Fund | 10 Mar 2025

Source: IE 

The US has withdrawn from the Loss and Damage Fund (LDF), furthering its disengagement from global climate commitments like the Paris Agreement and Green Climate Fund. 

• LDF: Created at UN Climate Change Conference COP 27 in Egypt, the LDF supports developing and small island nations facing climate-induced losses like rising sea levels, heatwaves, and extreme weather, with contributions from developed nations. 
  • The LDF is managed by a Governing Board, with the World Bank as its interim trustee. 
  • Nearly USD 750 million pledged under LDF, with the US contributing USD 17.5 million before withdrawing. 
• Implications of US Withdrawal: Vulnerable nations, including India (which alone faced USD 56 billion in weather-related damages (2019 - 2023)), face growing uncertainty in climate aid, further straining North-South climate negotiations.