Who Bears the Cost of the US Climate Policy Reversal?

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Hassan Khan

Who Bears the Cost of the US Climate Policy Reversal?

US Withdrawal from the Paris Agreement: Consequences for Climate and Global Dynamics

In 2017, when President Donald Trump took office, the US made the controversial decision to withdraw from the Paris Agreement, aligning with nations like Iran, Yemen, and Libya in not ratifying the climate accord under the UN Framework Convention on Climate Change (UNFCCC). Trump’s statement, “I’m immediately withdrawing from the unfair, one-sided Paris climate accord rip-off,” was met with widespread criticism from climate activists, who warned that “climate change does not care what he thinks.”

This move was expected, given Trump’s climate change denial policies from 2017 to 2021, which included repealing the Clean Power Plan, loosening fuel efficiency standards, reducing methane regulations, and expanding fossil fuel drilling. The US, as the world’s largest historical emitter of greenhouse gases, accounts for a substantial 23.83% of global CO2 emissions, with a cumulative 431.85 million tonnes of CO2 emitted in 2023. Despite global efforts to keep the temperature rise under 1.5°C, this decision intensified concerns about the planet’s warming trajectory, with fears of surpassing a 3°C rise.

Read More: One Nation, 20 Million Displaced by Climate Change

Global Power Shift and Loss of Climate Leadership

The US has traditionally played a central role in shaping global climate policy. By withdrawing from the Paris Agreement, the US vacated its leadership position, paving the way for countries like China, the EU, Saudi Arabia, and Brazil to take the lead on climate action. This created a power vacuum, relegating the US to observer status in the Paris Agreement and reducing its influence in global climate discussions.

Economic Implications and Trade Tensions

Another significant consequence of the US withdrawal is the threat to its economic reliability. The EU, now emerging as a leader in climate crisis management, has been implementing the European Green Deal, which includes mechanisms like the Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Due Diligence Directive (CS3D). These measures aim to impose tariffs on imports from countries with weaker climate policies, potentially raising costs for US exporters and reducing their competitiveness in European markets. As the EU continues to regulate global trade through stricter climate standards, the US may face increased economic polarization and trade tensions. Trump’s antagonistic stance on these measures could lead to a crossroads in international relations.

Environmental and Domestic Consequences

The US withdrawal has also had detrimental environmental effects, contributing to the escalating frequency of natural disasters such as floods, hurricanes, and wildfires. Moreover, many US cities, states, and businesses – representing two-thirds of the population and three-fourths of the economy – had already committed to the Biden administration’s 2035 climate targets, making the decision even more contentious.

Long-term Impacts

Ultimately, the decision to withdraw from the Paris Agreement and halt climate change efforts will disproportionately affect vulnerable countries and communities, exacerbating global inequities. However, the consequences are not limited to the global stage. The US itself stands to suffer both environmentally and economically in the long term. Rejoining the Paris Agreement remains crucial for global climate action, ensuring a unified and sustainable response to the ongoing crisis.

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