Treasury Secretary Scott Bessent has announced that United States was withdrawing from the Green Climate Fund (GCF), calling them “radical organisations.” The Trump administration had earlier decided to withdraw from the UN Framework Convention on Climate Change (UNFCCC).
In its official statement, Scott Bessent said, “Effective immediately, the United States is withdrawing from @theGCF. Our nation will no longer fund radical organizations like the GCF whose goals run contrary to the fact that affordable, reliable energy is fundamental to economic growth and poverty reduction.”
What US said in its statement?
In a press release, the US Department of Treasury said that in alignment with the earlie decision to withdraw from the UNFCCC, the government has decided to withdraw from the GCF and stepping down from its board.
“The Trump Administration is committed to advancing all affordable and reliable sources of energy, which are fundamental to economic growth and poverty reduction,” the presser said. Also Read | Sidbi plans to infuse $800 mn in climate fund for small businesses
It continued, “The GCF was established to supplement the objectives of the UNFCCC, and continued participation in the GCF has been determined to no longer be consistent with the Trump Administration’s priorities and goals.”
Just last year, the UN's flagship climate fund's chief had announced a record-breaking year for approving projects in vulnerable countries. It had credited red-tape-cutting reforms for the achievement that includes a major desalination project in Jordan. Also Read | Why is Greenland Trump's ‘dreamland’? How climate change is making Arctic desirable | Explained
In an interview ahead of the COP30 talks in Brazil next month, Mafalda Duarte, executive director of the Green Climate Fund, also defended the use of loans – a touchy topic given concerns about raising lower income nations' debt.
What is Green Climate Fund?
According to the Green Climate Fund website, GCF is the largest global fund dedicated to help fight climate change….mandated to support developing countries raise and realize their Nationally Determined Contributions (NDC) ambitions towards low-emissions, climate-resilient pathways.
In November 2015, the Green Climate Fund (GCF) approved USD 6.2 million for its first project in Peru’s Amazon basin. “Since then, GCF’s portfolio has grown to USD 19.3 billion, with more than 300 projects in over 130 countries. GCF.10 looks back on GCF’s journey and impact as the world’s climate fund for developing countries and reinforces GCF’s commitment to even more impact in a critical time of the climate crisis,” the website mentioned.
