The United States has announced its immediate withdrawal from the Green Climate Fund (GCF), marking another major step by the Trump administration away from international climate commitments. US Treasury Secretary Scott Bessent made the announcement on Thursday, saying continued participation in the fund no longer aligns with Washington’s priorities.
In a statement shared online, Bessent said the administration would stop supporting bodies such as the GCF, arguing that their approach clashes with the US view that affordable and reliable energy access is key to economic growth and poverty reduction. He added that climate-focused institutions often conflict with the administration’s broader policy direction.
The Treasury Department said the decision follows the US exit from the United Nations Framework Convention on Climate Change (UNFCCC). As part of the move, the United States will also step down from the GCF’s board. Officials said the administration remains focused on promoting all forms of dependable and cost-effective energy as the foundation of development.
According to the department, the GCF was created to advance the goals of the UNFCCC, making continued US involvement inconsistent with current policy objectives.
The announcement comes less than a year after the Green Climate Fund reported a record number of project approvals in climate-vulnerable countries. The fund had credited internal reforms aimed at cutting red tape and speeding up clearances, including progress on major initiatives such as a desalination project in Jordan.
The decision was followed closely by another significant move on the climate front. Earlier in the day, US President Donald Trump formally withdrew the country from the International Solar Alliance (ISA), a renewable energy grouping co-led by India and France. Critics said the exit weakens global cooperation on solar power at a time when many countries are accelerating clean energy deployment.
Reacting to the US withdrawal from the GCF, French President Emmanuel Macron said Washington was increasingly distancing itself from international norms and commitments.
“The United States is a major power, but it is gradually turning away from some of its allies and freeing itself from international rules it had previously promoted—whether in trade, security or multilateral forums,” Macron said.
US pullback from global bodies
The exit from the GCF is part of a broader retreat from multilateral institutions under Trump’s second term. The administration recently issued a proclamation directing the US to withdraw from 66 international organisations, including 35 bodies outside the UN system and 31 linked to the United Nations.
Among those affected is the India-led International Solar Alliance, marking one of the most extensive reductions in US participation in global institutions in recent years. The White House said the decision was based on concerns that these organisations no longer serve American interests and instead promote agendas that undermine US sovereignty and economic priorities.
Since returning to office, Trump has steadily scaled back US engagement with the UN framework. His administration has pulled out of the UN Human Rights Council, continued the suspension of funding to the UN agency for Palestinian refugees (UNRWA), and withdrawn from UNESCO. During his first term, Trump had also exited the Paris Climate Agreement.