Second-Term Shake-Up: Donald Trump Withdraws US from Paris Climate Agreement

In 2025, President Donald Trump made the decision to withdraw the U.S. from the Paris Climate Agreement for the second time, reflecting his ongoing opposition to international climate accords. His justification for the move centers on the belief that the agreement places undue economic burdens on the U.S., particularly on the fossil fuel industry, while allowing other major emitters like China and India to avoid stricter commitments. The global response has been mixed, with European nations and environmental organizations condemning the move, while countries like China may view it as tacit approval of their own climate policies. Developing nations, which rely on U.S. funding for climate action, are also at risk of losing support for their green energy transitions. Domestically, Trump’s decision aligns with his economic priorities, favoring traditional energy industries over clean energy, which could affect U.S. competitiveness in renewable energy markets. However, private sector and state-level climate initiatives may continue to grow despite the federal pullback. The decision further isolates the U.S. from global climate efforts and raises questions about the future of American leadership in combating climate change. As the world accelerates efforts to reduce emissions, the U.S. will have to find alternative strategies to address climate change. Trump’s withdrawal places increased pressure on other nations to meet global climate goals. The decision highlights the deepening political divisions in the U.S. over climate change, with long-term implications for both domestic and international policy.

ENERGY & TRANSPORTATIONUSA

1/21/20255 min read

Trump’s Second Withdrawal from the Paris Climate Agreement: A Critical Analysis

In 2025, just days after taking office for his second term, President Donald Trump made the decision to withdraw the United States from the Paris Climate Agreement for the second time. This move, widely anticipated due to his previous stance on climate change during his first term, marks a significant development in global environmental policy. The Paris Agreement, a landmark accord established in 2015 with nearly every nation on Earth, aims to limit global warming to well below 2 degrees Celsius compared to pre-industrial levels, with the goal of pursuing efforts to limit the temperature increase to 1.5 degrees Celsius. Trump’s decision to withdraw yet again is viewed as a critical shift in U.S. climate policy and raises important questions about the future of international climate cooperation.

The Decision: A Repeat of History

Trump’s withdrawal from the Paris Climate Agreement in 2025 is essentially a repetition of his 2017 decision during his first term in office. His argument for leaving the accord, then and now, is based on the belief that the agreement imposes excessive economic burdens on the U.S. while allowing other countries, particularly China and India, to have looser commitments. He has argued that the accord harms American businesses, particularly those in the fossil fuel sector, by setting unrealistic environmental goals. During his first term, Trump’s administration sought to roll back environmental regulations in favor of economic growth and job creation, especially in coal, oil, and natural gas industries. His decision to exit the Paris Agreement aligns with this broader economic philosophy of “America First,” which prioritizes U.S. economic interests over international agreements.

Although his withdrawal in 2025 may seem consistent with his past policies, the timing and global climate landscape have changed significantly since 2017. In his first term, the world had not yet seen the extreme weather events, forest fires, and global climate disasters that have since become more common. The U.S. also faced greater international pressure, particularly from European nations and environmental organizations, to uphold its climate commitments. Yet, despite these developments, Trump’s second-term decision is emblematic of his administration’s unwavering commitment to reducing U.S. involvement in international climate agreements.

Global and Domestic Implications

The global response to Trump's second withdrawal has been mixed, with countries like China, India, and Russia potentially seeing the U.S. withdrawal as tacit approval of their own environmental policy challenges. On one hand, these nations may now feel less pressure to make climate commitments, knowing that the U.S. will not be leading efforts on this front. On the other hand, European nations and many climate-focused organizations have expressed strong disapproval, arguing that the U.S.’s exit weakens global climate action.

For developing countries, which rely on financial and technological assistance from wealthy nations like the U.S., Trump’s withdrawal is a significant setback. The Green Climate Fund, a mechanism designed to help poorer nations transition to sustainable energy, has traditionally received funding from the U.S., but this is now at risk. Developing nations, particularly in Africa and Southeast Asia, often lack the resources to invest in renewable energy infrastructure, making international cooperation on climate change crucial for their development and survival.

Moreover, as the U.S. re-exits the Paris Agreement, the international community may look to other major emitters to take the lead on climate action. European countries, particularly members of the European Union, are already pushing forward with ambitious climate initiatives, such as the European Green Deal, which aims to make the continent carbon-neutral by 2050. Without the U.S. as a key partner, other nations will likely have to shoulder more responsibility for meeting global emissions targets. This could mean a greater focus on regional cooperation and local solutions, potentially sidelining the U.S. in the process.

Economic Impact: A Win for Fossil Fuels, A Loss for Clean Energy

Domestically, Trump’s decision to pull out of the Paris Agreement again aligns with his “America First” rhetoric, which emphasizes energy independence and job creation in sectors like coal, oil, and natural gas. His administration has often positioned itself as a champion for American energy dominance, arguing that international climate accords harm the nation’s economic competitiveness. By pulling out of the Paris Agreement, Trump believes that the U.S. will be able to protect its traditional energy industries from international regulations that could limit production and consumption of fossil fuels.

However, this position is increasingly at odds with the trajectory of global energy markets. The clean energy sector in the U.S., which has seen significant growth over the past decade, faces considerable setbacks as global markets increasingly prioritize renewable energy. According to experts, the growing emphasis on green energy globally is leading to the rise of solar, wind, and electric vehicle technologies, sectors where the U.S. faces stiff competition from countries like China, the EU, and India. By withdrawing from the Paris Agreement, the U.S. risks losing its competitive edge in these emerging markets.

The economic implications are not just limited to clean energy. Major U.S. corporations have embraced sustainability and have set ambitious goals to reduce carbon emissions. This includes tech giants like Google, Microsoft, and Apple, which have committed to carbon neutrality. Trump’s decision to pull the U.S. out of the Paris Agreement could undermine these private sector efforts, potentially causing confusion and frustration among businesses that are already aligning their strategies with the goals of the accord.

The Path Forward: What’s Next for the U.S.?

Looking forward, the question remains: how will the U.S. address climate change now that it is out of the Paris Agreement? The Biden administration had rejoined the agreement in 2021, and many states and local governments have committed to aggressive climate targets, including carbon neutrality and 100% renewable energy. However, under Trump’s second term, it is likely that the federal government will continue to downplay the role of climate change in public policy.

States, particularly those on the West Coast and in the Northeast, may continue to push forward with their own climate initiatives, setting ambitious carbon reduction goals and investing in renewable energy. Additionally, businesses that have made sustainability commitments may continue their efforts despite the federal pullback. However, these local and private efforts may not be enough to meet the scale of the challenge, especially when global cooperation is needed to mitigate climate change and limit global temperature rise.

Conclusion: A Divisive Decision

Trump’s decision to withdraw from the Paris Climate Agreement for the second time in 2025 reinforces the ideological divide over climate change policy in the U.S. While his supporters view this as a victory for American economic independence, critics argue that it weakens U.S. leadership on climate action and risks accelerating the global climate crisis. The decision underscores the increasing tension between environmental protection and economic priorities, with the future of U.S. climate policy likely to remain a contentious issue. As the global community intensifies its efforts to combat climate change, the U.S.’s withdrawal places greater responsibility on other nations to fill the void left by the world’s second-largest emitter. Whether the U.S. can regain its role as a global leader in climate change action will depend on future administrations and the ability of domestic actors to continue pushing for meaningful change.