NEW DELHI: Even as the American President declared that the US would withdraw from the Paris Agreement, a coalition of 24 governors under the US Climate Alliance, representing about 60 per cent of the US economy and 55 per cent of the US population, wrote to UN climate chief Simon Stiell, assuring that they will continue America’s work to achieve the goals of the global pact.
Though such a move at sub-national levels will not be able to fill the climate finance and mitigation gaps, it will at least protect private businesses’ investment in clean energy and innovation, and save jobs in the states.
The most immediate impact of President Donald Trump’s move would be reflected in the other countries’ fresh mitigation pledges under the global pact, which they are expected to make by February for climate actions until 2035. It is apprehended that many countries will not chip in with ambitious national emission reduction goals when the biggest historical polluter, the US, is out of the pact and climate finance flow is not adequate.
“The momentum of global consensus on climate action will be lost. Other countries may scale down their ambitions. Large commercial banks and investors in the US will no longer be asked to support climate technologies – it means climate finance flows to low-carbon technologies will be lower than desired,” said Labanya Jena, sustainable finance specialist.
The world already saw its impact when countries had to contend with a weak post-2025 climate finance target at COP29 in Baku, Azerbaijan, following Trump’s victory in November last year.
The letter, written by Democratic governors, cited governors’ broad authority under the US Constitution to continue to advance innovative and impactful climate solutions and pointed to the alliance’s long record of action and results.
“We will not turn our back on America’s commitments. For our health and our future, we will press forward,” said New York governor, Kathy Hochul, and New Mexico governor, Michelle Lujan Grisham, in their letter to Stiell.
They said the alliance was committed to tracking and reporting on their progress to the international community, including at the UN Climate Change Conference in Brazil (COP30) later this year.
Observers, however, believe that sub-national players’ action would not ensure finance flow needed to take mitigation action in the developing countries as Trump’s decision will also influence multilateral development banks (MDBs).
“MDBs are unlikely to continue focussing on climate finance, which is essential for developing countries. Given the veto of the US on the World Bank they may force it to move away from climate financing,” said Jena.
“The impact of the new US administration is likely to be felt not so much in the area of private investments in renewable and clean energy space as on global resource flows for financing clean energy transition. The forces of competitive trade actions in the name of climate may get reinforced,” said R R Rashmi, distinguished fellow, TERI, and India’s former climate negotiator.
