In 2017, the withdrawal of the United States from the Paris Climate Agreement under President Donald Trump's administration marked a significant shift in global climate policy. Upon his re-election in 2025, President Trump has announced once again that United States will withdraw from the Paris Climate Agreement, making it one of only 4 countries in the world that is excluded.
Understanding the Paris Climate Agreement
The Paris Agreement, established in 2015, represents a groundbreaking international climate accord designed to address global warming. The agreement's core objectives include:
- Limiting global temperature rise to below 2 degrees Celsius above pre-industrial levels
- Pursuing efforts to limit temperature increase to 1.5 degrees Celsius
- Establishing Nationally Determined Contributions (NDCs) for emission reductions
- Implementing regular progress reviews and updates
As world's second largest greenhouse gas emitter after China, the United States' participation in the Paris Climate Agreement has profound impact on the rest of the world.
Trump's Decision: America First Policy and Climate Agreement Withdrawal
President Trump announced the United States' withdrawal from the Paris Agreement because of several key factors:
Economic Considerations
The administration argued that the agreement would:
- Impose excessive regulations on American businesses
- Disadvantage U.S. industries in global competition
- Create potential job losses in traditional energy sectors
- Require significant financial contributions to the Green Climate Fund
Policy Justification
Trump's decision aligned with his "America First" doctrine, emphasising:
- Protection of domestic economic interests
- Preservation of national sovereignty
- Concerns about disproportionate obligations compared to other nations
- Criticism of developing nations' emission allowances
Diplomatic Consequences
The withdrawal generated significant international reaction:
- Strained relationships with key allies
- Created a leadership vacuum in global climate initiatives
- Prompted increased climate leadership from China and the European Union
- Led to new international climate partnerships excluding U.S. participation
Economic Implications
The decision affected various economic sectors:
- Renewable energy investment patterns
- International trade relationships
- Clean technology development
- Global carbon market dynamics
State and Local Initiatives
Despite federal withdrawal, numerous domestic entities maintained climate commitments:
- State-level climate action plans
- City-based sustainability initiatives
- Corporate environmental programs
- Formation of climate action coalitions
Business Community Response
Major corporations demonstrated continued environmental commitment through:
- Renewable energy investments
- Sustainable business practices
- Climate-focused innovation
- International climate partnerships
Long-term Impact Assessment
The withdrawal period influenced:
- Global climate policy development
- International environmental cooperation
- Domestic climate action strategies
- Public perception of climate initiatives
The U.S. withdrawal from the Paris Agreement under Trump's America First policy represents a significant chapter in global climate policy history. While the immediate effects created challenges for international climate efforts, the experience highlighted the resilience of climate action at multiple levels of society and government. As climate change continues to present global challenges, understanding this period remains crucial for developing effective future environmental policies.
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Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Maiden Capital. The information provided is meant as a general guide only and should not be construed as investment advice. You should always consult your financial, legal and tax advisers regarding private equity and real estate investments
