The United States has announced an immediate withdrawal from the Green Climate Fund (GCF), marking another major step in the Trump administration’s retreat from international climate cooperation. The decision was announced on Thursday by Scott Bessent, who said the move reflects a broader reassessment of global climate commitments that the administration believes no longer align with American priorities.
In a statement released online, Bessent explained that the United States would cease all support for organisations such as the GCF, arguing that their objectives clash with the administration’s core belief that access to affordable, reliable, and dependable energy is fundamental to economic growth and poverty reduction. According to the administration, policies promoted by climate-focused multilateral bodies risk constraining energy access in developing and industrial economies alike, thereby undermining development goals rather than advancing them.
The US Treasury Department said the withdrawal follows the administration’s earlier decision to exit the United Nations Framework Convention on Climate Change (UNFCCC). As part of the disengagement process, the United States will also relinquish its seat on the board of the Green Climate Fund. Officials said continued participation in the GCF was no longer compatible with current US policy, given that the fund was created specifically to advance the objectives of the UN climate framework.
According to the Treasury, the administration remains committed to promoting all forms of affordable and reliable energy as the backbone of economic development. It maintains that energy security, rather than emissions-focused targets, should be the primary driver of growth and poverty alleviation, especially in emerging and low-income economies.
The announcement comes less than a year after the Green Climate Fund reported a record year for project approvals in climate-vulnerable countries. The fund had attributed this progress to internal reforms designed to cut red tape and accelerate financing, including advancements on large-scale initiatives such as a desalination project in Jordan aimed at addressing water scarcity linked to climate stress.
The decision to exit the GCF followed closely on the heels of another major climate-related withdrawal. Earlier the same day, Donald Trump formally pulled the United States out of the International Solar Alliance (ISA), a global renewable energy initiative co-led by India and France. Critics argued that leaving the ISA weakens international cooperation on solar energy at a time when many countries are expanding efforts to deploy clean, affordable power.
Reacting strongly to the US decision to quit the Green Climate Fund, Emmanuel Macron said Washington was increasingly distancing itself from international norms and legal frameworks. He remarked that while the US remains a major global power, it appears to be turning away from allies and disengaging from rules and institutions it had previously supported, whether in areas of trade, security, or multilateral governance.
The withdrawal from the GCF is part of a broader pullback by the United States from global multilateral institutions. In recent weeks, Trump signed a proclamation directing the country to exit 66 international organisations. Among those affected is the India-led International Solar Alliance, making the move one of the most extensive reductions in US participation in global bodies in recent years.
The White House said the proclamation mandates withdrawal from 35 organisations outside the UN system and 31 entities affiliated with the United Nations. Administration officials argued that these institutions increasingly promote agendas that conflict with US sovereignty, economic priorities, and national policy objectives.
Since beginning his second term, Trump has steadily reduced Washington’s engagement with the UN system. His administration has withdrawn from the UN Human Rights Council, continued the suspension of funding to the UN agency for Palestinian refugees (UNRWA), and exited UNESCO. During his first term, Trump had also withdrawn the United States from the Paris Climate Agreement, reinforcing his long-standing scepticism toward international climate accords.
