Impact of Second U.S. Exit from Paris Agreement Looms Large

The U.S. withdrawal from the Paris Agreement marks a significant setback in global climate efforts. Analysts warn of increased global warming, disrupted climate financing, and potential deterrence of U.S. green investments, as President Trump halts U.S. participation in international climate agreements and domestic initiatives.

Analysts and diplomats suggest that the United States' second withdrawal from the Paris Agreement could have more profound effects globally than the initial exit in 2017. President Trump's decision to leave the climate pact creates uncertainties in climate funding, investment, and policy alignment between the U.S. and Europe.

Trump's withdrawal is expected to take effect in a year, encouraging concerns over the escalation of global warming and the disruption of climate financing for poorer nations, potentially costing them billions in aid. It also jeopardizes U.S. business opportunities in emerging carbon markets.

The move raises questions about future U.S. climate actions and could spur other major economies to fill the void, while U.S.-based multinational companies face the challenge of reconciling divergent U.S. and European climate policies.

(With inputs from agencies.)