Private sector steps in to fulfil US climate commitments after Paris Agreement exit
UN Special Envoy on climate change and media billionaire Michael Bloomberg is mobilising funding from philanthropies and “other climate funders” to meet US climate obligations after President Trump confirmed the country’s exit from the Paris Agreement.
After the new Republican administration signed an executive order to withdraw the United States from the Paris Agreement on Trump’s first day as President, Bloomberg Philanthropies has announced that it will help to fulfil some of the country’s abandoned obligations, including around funding and emissions reporting.
Under the Paris Agreement, countries are expected to provide financing for the UN Framework Convention on Climate Change (UNFCCC) and its activities. The US withdrawal is therefore set to leave a large funding gap, which Bloomberg Philanthropies and other undisclosed US climate funders aim to fill, just like they did the first time Trump exited the climate agreement.
“From 2017 to 2020, during a period of federal inaction, cities, states, businesses, and the public rose to the challenge to uphold our nation’s commitments – and now, we are ready to do it again,” said Bloomberg, Founder of Bloomberg Philanthropies.
Companies, cities and states ready to pick up the slack
In addition, Bloomberg also supports ‘America Is All In’, a coalition of US cities, states, businesses, and other subnational climate leaders working to meet the country’s commitment to reduce emissions 61-66% below 2005 levels by 2035 – a new nationally determined contribution (NDC) announced by Joe Biden in his last days as President.
While there may be little action at the federal level to meet this target, 24 states immediately transcribed it into local climate targets, which they pledged to fulfil regardless of federal regulations.
“Mike Bloomberg’s generous donation ensures the world retains a vital venue for working together on the defining issue of our time, which no country can solve alone or afford to ignore,” said Laurence Tubiana, CEO of the European Climate Foundation, France’s former Climate Change Ambassador and Special Representative for COP21, and COP22 UN High-Level Champion for Climate Action. “US philanthropy, along with millions of Americans, cities, and states across the country, is stepping up – recognising the huge benefits of climate action, the necessity to pursue the transition to zero carbon economy and the devastating costs of inaction.”
California leading the way
Political division is growing across the country, and the approach to climate action varies dramatically depending on the state. California is seen as one of the states most committed to the fight against climate change – unsurprisingly given its high vulnerability to extreme weather events like wildfires and droughts.
From January 2026, around 10,000 companies operating in California will be expected to report on their emissions across all scopes as well as climate-related risks and opportunities – and 85% of them are actively preparing for it.
Gina McCarthy, former White House National Climate Advisor, 13th US EPA Administrator, and Managing Co-Chair of America Is All In, said: “Just like they did during the last Trump administration, our cities, states, businesses, and local institutions will take the baton of US climate leadership and run with it. The America Is All In coalition commits to working with partners across our country and abroad to ensure we stay focused on cutting pollution, while delivering good-paying jobs, lowering energy bills, and protecting health at home and around the world.”
Member discussion