US withdraws from loss and damage fund to compensate developing countries due to climate change

In a setback to global climate justice efforts, the United States has withdrawn from loss and damage fund aimed at compensating developing countries for the damages caused by climate change.
The Fund for responding to loss and damage, established to support vulnerable nations, now faces uncertainty after the US decided to exit its governing board.
The African Group of Negotiators (AGN), a coalition of African countries involved in UN climate talks, expressed strong disappointment over the decision, calling it a blow to nations already bearing the brunt of climate change, news agency PTI reported.
"This decision, made by the nation with the largest historical responsibility for climate change, jeopardizes vital support for vulnerable countries facing irreversible climate impacts," AGN Chair Ali Mohamed told PTI.
In an official communication, Rebecca Lawlor, Deputy Director at the US Office of Climate and Environment, informed Jean Christophe Donnellier, Developed Country Co-Chair of the Fund, that the US is withdrawing from the board effective immediately.
The letter further noted that both the US Board Member and Alternate Board Member would step down without being replaced.
The fund was established after years of advocacy from developing and least-developed nations suffering from climate impacts. It was officially agreed upon at the UN climate conference in Sharm El-Sheikh, Egypt, in 2022. Countries then decided to operationalize the fund starting January 1, 2025, at COP29 in Baku in 2024.
Climate activist Harjeet Singh criticized the move, pointing out, "The decision by the Donald Trump administration to withdraw from the fund for responding to loss and damage exemplifies a longstanding pattern of obstruction by the US government in securing necessary finance for addressing climate impacts."
"As the largest historical emitter, the United States bears a significant share of the blame for the climate adversities affecting vulnerable populations worldwide. We must hold them accountable and ensure they contribute their fair share towards global climate reparations," he added.