African countries have been left in limbo after the United States announced that it had withdrawn its membership from the Fund for Responding to Loss and Damage (FRLD).
The FRLD was born in November 2024 after a global agreement under which developed nations pledged to compensate developing countries for climate change impacts.
In an official communication to Jean Christophe Donnellier, Developed Country Co-Chair of the Fund for Responding to Loss and Damage, Rebecca Lawlor, the Deputy Director at the US Office of Climate and Environment, revealed that the US would be withdrawing its membership immediately.
The letter further noted that both the US Board Member and the alternate board member would step down without being replaced.
"On behalf of the United States Department of the Treasury, I write to inform you that the United States is withdrawing from the Board for the Fund for responding to loss damage effective immediately," Lawlor revealed.
"Both the United States Board Member and United States Alternate Board Member will be stepping down not to be replaced by a US representative. Consistent with the rules of procedure, please convey this change to the secretariat," she continued.
As of January 23, wealthy countries had pledged $741 million (Ksh95 billion) to the fund, according to UN data, with the United States putting up $17.5 million (Ksh2 billion). It is unclear if it will now honor that pledge.
This means that Kenya will face reduced financial support for climate disaster recovery and adaptation, given the US's significant role in global funding.
The move might strain Kenya's economy, particularly its climate-vulnerable agriculture and tourism sectors. It also comes at a time when Kenya is facing climate change, as 1.5 million Kenyans risk starvation.
Reacting to the statement by the US informing of the withdrawal, the African Group of Negotiators (AGN), a coalition of African nations participating in UN climate talks, Chairman Ali Mohammed expressed deep disappointment over the move.
"This decision, made by the nation with the largest historical responsibility for climate change, jeopardizes vital support for vulnerable countries facing irreversible climate impacts," Mohammed told PTI.
The fund was established after years of advocacy from developing and least developed nations suffering from climate impacts. It was officially agreed upon at the UN climate conference in Sharm El-Sheikh, Egypt, in 2022.
Countries then decided to operationalize the fund starting January 1, 2025, at COP29 in Baku in 2024, a meeting that Prime Cabinet Secretary Musalia Mudavadi attended and represented Kenya in.
The fund saw African countries bag Ksh167 trillion to help counter climate-related challenges.
