US Paris Agreement Withdrawal Ordered as Climate Finance Plan Is Revoked

The order goes further than the Paris Agreement itself. It also instructs the Ambassador to notify withdrawal from any agreement, pact, accord or similar commitment made under the UN Framework Convention on Climate Change (UNFCCC), and, with the Secretaries of State and the Treasury, to cease or revoke immediately any purported financial commitment made by the United States under the UNFCCC.

What the order requires

• Climate finance: the US International Climate Finance Plan is revoked and rescinded with immediate effect, and the Director of the Office of Management and Budget must issue guidance within 10 days on rescinding all frozen funds.
• Agency reporting: within 30 days, named cabinet members and agency heads, including the Secretaries of State, Treasury, Commerce, Energy and Agriculture and the heads of several financing agencies, must report on actions taken to revoke policies that advanced the plan.
• Energy diplomacy: international energy agreements are to prioritise economic efficiency, American prosperity, consumer choice and fiscal restraint.

The order states that the withdrawal takes effect immediately upon notification. Under Article 28 of the Paris Agreement, however, a withdrawal takes effect one year after the depositary receives the notification, so the treaty position will be governed by that timetable.

Who is affected

For businesses, the immediate effects are in public climate finance and international cooperation rather than in domestic regulation. Projects in developing countries that relied on US climate finance commitments, multilateral climate funds and companies active in climate-related development finance face reduced US government support. Multinationals with emissions targets aligned to the Paris goals are not directly affected, as the agreement binds states rather than companies, but they will be watching how US federal policy evolves.

What happens next

Once the notification is received by the UN, the one-year withdrawal period under Article 28 will begin. The order also requires a further report on any additional action needed to meet its stated policy objectives, which may shape the US approach to future UNFCCC negotiations.

Sources

• The White House: Putting America First in International Environmental Agreements (20 January 2025)
• UNFCCC: Paris Agreement (text)