U.S. Withdraws from U.N. Climate ‘Loss and Damage’ Fund Board

The United States has officially stepped down from the board of the United Nations’ “loss and damage” fund, a mechanism designed to aid nations impacted by climate-induced disasters. The decision, confirmed in a letter from U.S. representative Rebecca Lawlor dated March 4, means that both the primary and alternate U.S. board members will not be replaced.

The withdrawal casts uncertainty over the country’s $17.5 million contribution to the fund, which is hosted by the World Bank and has accumulated $741 million in pledges. The fund is set to finance projects this year to assist vulnerable nations recovering from climate-related destruction, such as extreme droughts and flooding.

The move aligns with broader U.S. policy shifts under President Donald Trump, who previously withdrew from the Paris Agreement and reduced funding for international climate initiatives. Nearly 200 countries agreed to establish the loss and damage fund at COP28 in 2023, marking a significant step for developing nations advocating for climate reparations.

It remains unclear whether the U.S. withdrawal applies solely to its board membership or extends to full disengagement from the fund. The World Bank continues to serve as its host, but any future structural changes remain uncertain.

Critics argue that the decision weakens global climate cooperation at a critical juncture. Harjeet Singh, director of the Satat Sampada Climate Foundation, criticized the U.S. departure, stating that as the world’s largest historical emitter, the country has a responsibility to address the climate consequences faced by vulnerable populations.