The head of the UN’s largest climate finance institution has called on global leaders to maintain their commitments to climate funding after the United States withdrew $4 billion in promised contributions to the Green Climate Fund (GCF).
Mafalda Duarte, executive director of the GCF, emphasized the strategic and economic necessity of supporting developing nations in their fight against climate change. She warned that failing to invest in mitigation and adaptation efforts would have global repercussions.
“We live in an interconnected world: no country, not even the richest ones, can afford to treat climate change solely as a domestic matter,” Duarte stated in a LinkedIn post. “Its most severe consequences—including conflict and migration—will ripple across the globe unless action is taken where it matters most: in developing countries.”
U.S. Reneges on Climate Commitments
Duarte’s appeal follows reports that former U.S. President Donald Trump’s administration officially rescinded its outstanding pledges to the GCF, breaking commitments made under previous administrations. The U.S. had initially committed $3 billion under Barack Obama in 2014 and another $3 billion under Joe Biden in 2023. However, only $2 billion of the total was ever disbursed, largely due to Republican opposition in Congress.
No country had previously revoked its pledged contributions to the GCF, which was established in 2010 to channel climate finance to developing nations. To date, the fund has approved $16 billion worth of projects across 133 countries, with Germany, the UK, and Japan among its largest contributors.
Economic and Strategic Risks
Duarte underscored that climate finance is not only a moral obligation but also an economic opportunity. “Countries that lead in climate finance will lead the future economy,” she wrote. “When nations step back, others step in.”
Her comments align with those of UN climate chief Simon Stiell, who recently noted that while some nations withdraw from climate action, others are stepping in to capitalize on clean energy investments. Speaking in Brazil, the host of COP30, Stiell emphasized that the transition to renewable energy offers “massive rewards” to those who seize the opportunity.
Impact on Climate Projects
While market-driven clean energy projects may still attract private investment, grant-based initiatives—such as climate resilience programs in vulnerable nations—are at greater risk due to the U.S. funding shortfall. Duarte highlighted a GCF-backed initiative in El Salvador that provides sustainable farming and water management solutions for over 200,000 people affected by prolonged droughts.
Despite the U.S. pullback, a GCF spokesperson confirmed that existing projects remain fully funded. The organization expects to approve up to $3 billion in new projects this year but acknowledged that “if pledges are not fully realized, our ability to support the climate ambitions of developing countries will be constrained.”
As climate challenges intensify, the question remains whether other nations will step up to fill the financial gap left by the U.S. withdrawal.
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