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Paris Agreement: Reasons & Implications of US Withdrawal - UPSC Editorials

Last Updated on Jan 29, 2025
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Context: President Donald Trump has announced the United States' withdrawal from the Paris Agreement for the second time, effective next year. Unlike the first withdrawal in 2017, this move is accompanied by comprehensive dismantling of U.S. climate policies. The U.S. will join Iran, Libya, and Yemen as the only nations outside the Paris Accord.

Analysis based on 

Editorial published in An exit of bluster: On the U.S. and the climate change fight The Hindu on January 23rd, 2025

Topics for UPSC Prelims

Paris Agreement, Nationally Determined Contributions (NDCs)

Topics for UPSC Mains

Climate Finance, Multilateral Climate Cooperation

What is the Paris Agreement?

  • Adoption: December 12, 2015, by 196 parties under the UNFCCC.
  • Goals:
    • Limit global temperature rise to below 2°C, with efforts to cap it at 1.5°C.
    • Strengthen nations' capacity to deal with climate change impacts.
    • Require nations to submit Nationally Determined Contributions (NDCs) with periodic updates every five years.
  • Key Features:
    • Countries set their own emission reduction targets.
    • Developed nations commit to financial assistance for developing countries.
    • A framework for monitoring, reporting, and transparency.
  • India's Role: Ratified the agreement on October 2, 2016.

Download the Daily Current Affairs PDF for UPSC Preparation!

Reasons for the US Withdrawal from the Paris Agreement

The reasons behind the US withdrawing from the Paris Agreement includes:

  • China Policy Dispute:
    • Perceived unfair treatment of the U.S., as China, despite being a major emitter, is classified as a developing country with fewer restrictions.
  • Energy Independence:
    • Boosting domestic oil and gas production for energy security and employment.
    • Reducing dependence on Chinese-controlled renewable energy supply chains.
  • Economic Protection:
    • Emphasis on domestic energy production to create jobs and reduce foreign reliance.
  • Regulatory Freedom:
    • Removal of emission reduction requirements, allowing the U.S. to pursue unrestricted energy policies.

Read the article on the Difference Between Paris Agreement and Kyoto Protocol!

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Implications of the US Withdrawal from the Paris Agreement

The US withdrawal from the Paris agreement holds the following imperatives:

Global Climate Goals

  • As the second-largest emitter, U.S. withdrawal significantly hampers the Paris Agreement's target of limiting global warming.
    • Increased global emissions make achieving 1.5°C and 2°C goals more challenging

Climate Finance Disruption

  • Revocation of the $11 billion annual U.S. climate finance plan weakens global climate action funding.
    • Negative impact on mobilizing private and international finance for climate mitigation.

Increased Emissions

  • Record U.S. production of oil, gas, and LNG accelerates global emissions:
    • Rollback of electric vehicle mandates and other renewable energy initiatives further exacerbates emissions.
    • Additional 4 billion tonnes of emissions expected over the next four years.
    • U.S. likely to miss its 2030 target of a 50-52% emissions reduction.

Renewable Energy Dynamics

  • Imposition of tariffs on Chinese renewable energy equipment could disrupt the global renewable energy market and supply chains.

Global Leadership Vacuum

  • Undermines multilateral climate cooperation and weakens the Paris Agreement.
    • Opens space for China, the EU, and India to assume greater leadership roles in climate negotiations.

Shift in Energy Policy

  • Directive for new oil wells and gas exploration contradicts global decarbonization efforts.
    • Rollback of policies to promote electric vehicles weakens progress in sustainable transportation.

Diplomatic and Strategic Setbacks

  • Erodes U.S. credibility as a global leader in combating climate change.
    • Strains U.S. relations with key allies committed to the Paris Accord.

Read the editorial analysis on the Climate Finance Negotiations at COP29!

As the world's second-largest emitter, the U.S.'s exit not only raises emissions but also disrupts international climate financing and multilateral cooperation.

UPSC Practice Question

Examine the implications of US withdrawal from the Paris Climate Accord. (Ink in 150 words)

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