US Announces Immediate Exit from Green Climate Fund

The United States announced its immediate withdrawal from the Green Climate Fund on January 9, 2026. This decision interrupts the nation's participation in the primary international mechanism for financing climate actions in developing countries. The move is part of a broader series of exits from international organizations that began on January 8.

The withdrawal significantly reduces the fund's financing base. This directly affects the availability of resources for adaptation and mitigation projects in nations most vulnerable to climate change. As the world's second-largest emitter of carbon dioxide, the US exit pressures other donors to compensate for the absence. The fund, created in 2010, supports over 100 global initiatives, including 13 projects in Brazil focused on Amazon protection.

The United States announced its immediate exit from the Green Climate Fund (GCF) on Thursday, January 9. This decision interrupts the American participation in the main international financing mechanism for climate actions in developing nations. The withdrawal comes in the wake of decisions to leave other international organizations that started the previous day, on Wednesday, January 8.

The immediate retirement of the United States reduces the fund's financing base. This reduction can directly affect the availability of resources for adaptation and mitigation projects in countries that are more vulnerable to climate changes. Furthermore, the absence of such a major donor places pressure on other contributors to compensate for the funding gap.

The United States is the second-largest emitter of carbon gas in the world. This status makes the nation a significant contributor to global warming, which disproportionately affects the nations of the Global South, specifically the less developed countries.

The Green Climate Fund (GCF) was established in 2010 during the 16th Conference of the Parties (COP 16) in Cancún. It was created by the countries integrating the United Nations Framework Convention on Climate Change (UNFCCC). The fund later became part of the financial structure of the Paris Agreement.

Since approving its first project in 2015, the GCF has developed a portfolio containing more than 100 initiatives globally. These initiatives are designed to support developing countries in meeting their climate goals, known as Nationally Determined Contributions (NDCs). The fund remains a critical tool for international climate finance.

By 2024, the GCF had 13 projects active in Brazil. These projects focus on various environmental and economic initiatives aimed at addressing climate impacts. The presence of the fund in the country highlights the international support for local climate efforts.

Specific areas of focus for these projects include:

• Protection of the Amazon rainforest.
• Expansion of agroforestry in the Amazon region for economic development.
• Protection of the Marajó region, which is suffering from rising temperatures.
• Protection of coral reefs.

The withdrawal of the United States from the Green Climate Fund represents a significant shift in international climate cooperation. As a major economic power and a significant historical emitter, the US role in the fund was pivotal. The decision to exit immediately halts any future contributions from the country and removes its influence from the fund's strategic direction.

Developing nations rely heavily on the GCF to implement projects that build resilience against climate change. These projects range from renewable energy infrastructure to disaster preparedness. The loss of funding could delay or cancel critical initiatives, leaving vulnerable populations exposed to increasing environmental risks.

Other donor nations and private sector partners may need to increase their contributions to maintain the fund's operational capacity. The situation underscores the challenges of sustaining multilateral climate finance in a shifting geopolitical landscape.