An analysis of Executive Order 14162, which directs the United States to withdraw from international climate agreements.
The 1-Minute Brief
What: Executive Order 14126 directs the immediate withdrawal of the United States from the Paris Agreement and other climate-related commitments under the United Nations Framework Convention on Climate Change (UNFCCC).
Money: The order revokes the U.S. International Climate Finance Plan and ceases all related financial commitments. This halts progress toward a pledged goal of $11.4 billion annually by 2024, which included a six-fold increase in adaptation finance to $3 billion per year. Preliminary estimates for 2023 showed the U.S. was on track, having provided over $9.5 billion for international climate finance.
Your Impact: The direct effect on an average American will be through the policy's influence on the U.S. energy sector and the country's diplomatic standing. Proponents argue this will lower energy costs and prevent economic burdens. Opponents argue it will damage U.S. leadership on a critical global issue and expose the nation to long-term climate risks and related costs.
Status: This Executive Order was signed by the President on January 20, 2025, and is effective immediately.
What's Actually in the Bill
This executive order mandates a fundamental shift in U.S. international environmental policy. Its primary function is to terminate the nation's participation in and financial support for global climate initiatives, most notably the Paris Agreement. The order directs several immediate actions to disentangle the U.S. from these international commitments.
Core Provisions:
- Immediate Withdrawal from Paris Agreement: Directs the U.S. Ambassador to the United Nations to immediately submit formal written notification of withdrawal from the Paris Agreement.
- Withdrawal from Other UN Climate Agreements: Requires the Ambassador to withdraw from any other agreement or commitment made under the UN Framework Convention on Climate Change (UNFCCC).
- Cessation of Financial Commitments: Orders the immediate stop to any financial contributions made by the U.S. under the UNFCCC, in collaboration with the Secretaries of State and Treasury.
- Revocation of U.S. International Climate Finance Plan: The plan is rescinded immediately, and the Office of Management and Budget is directed to issue guidance for the rescission of all frozen funds within 10 days.
- Agency Policy Reversal: Requires heads of relevant departments (State, Treasury, Commerce, Energy, etc.) to report within 30 days on their actions to revoke policies associated with the Climate Finance Plan.
- New Foreign Policy Priority: Mandates that future international energy agreements prioritize economic efficiency, American prosperity, consumer choice, and fiscal restraint.
Stated Purpose (from the Sponsors):
The order states its purpose is to ensure the U.S. can grow its economy and maintain jobs while leading in global environmental protection. It asserts that recent international agreements do not reflect American values, steer taxpayer dollars to undeserving countries, and unfairly burden the U.S. economy.
- Grow the U.S. economy and protect jobs.
- Align international environmental policy with American economic interests and values.
- Prevent American taxpayer funds from being sent to countries that do not merit assistance.
- Ensure international agreements do not unduly or unfairly burden the United States.
Key Facts:
Affected Sectors: Energy, Environmental Policy, Foreign Relations, International Finance.
Timeline: Actions such as notifying the UN of withdrawal are ordered to be taken immediately as of January 20, 2025. Key reports and actions are mandated within 10 and 30 days of the order.
Scope: The order has a global scope, altering U.S. participation in international agreements and redirecting its foreign policy on energy and climate.
The Backstory: How We Got Here
Timeline of Events:
The Era of Global Climate Accords (1992-2024):
The U.S. has had a complex and often fluctuating relationship with international climate agreements. In 1992, the U.S. joined the United Nations Framework Convention on Climate Change (UNFCCC), a foundational treaty. The subsequent 1997 Kyoto Protocol, which set binding emission targets for developed nations, was signed by the U.S. but never ratified by the Senate amid economic concerns.
The Paris Agreement, adopted in 2015, took a different approach. It allows each country to set its own non-binding targets, known as Nationally Determined Contributions (NDCs). The Obama administration joined the agreement via executive action in 2016, pledging to reduce U.S. emissions by 26-28% below 2005 levels by 2025 and contributing $1 billion of a $3 billion pledge to the Green Climate Fund.
In 2017, the Trump administration announced its intent to withdraw, a process that was formally completed in November 2020. On his first day in office in 2021, President Biden rejoined the Paris Agreement, later launching the U.S. International Climate Finance Plan and pledging to increase annual climate aid to over $11 billion by 2024.
Why Now? The Political Calculus:
- The issuance of this Executive Order on January 20, 2025, reflects the fulfillment of a key political promise to prioritize domestic economic concerns over international environmental commitments.
- The action is driven by a political ideology that views agreements like the Paris Accord as economically disadvantageous and an infringement on national sovereignty.
- It serves to reverse the policies of the previous administration, marking a significant and immediate shift in federal priorities on climate change and foreign policy.
Your Real-World Impact
The Direct Answer: This directly affects specific U.S. industries, particularly energy and manufacturing, while the broader American public will feel indirect impacts through shifts in environmental policy, energy costs, and international relations.
What Could Change for You:
Potential Benefits:
- Supporters argue that by ending financial contributions to international climate funds and dismantling domestic regulations linked to the Paris Agreement, the U.S. economy will be freed from what they see as burdensome costs, potentially lowering energy prices and boosting fossil fuel production.
- The move could reduce the regulatory burden on some industries, which proponents claim will lead to job growth and a stronger manufacturing sector.
Possible Disruptions or Costs:
Short-term (1-3 years):
- Increased policy uncertainty for U.S. businesses, especially those that have invested in clean energy technologies and were aligning with Paris Agreement goals.
- Diplomatic friction with allies who remain committed to the Paris Agreement could impact U.S. influence and cooperation on other global issues.
Long-term:
- The absence of U.S. leadership and funding could slow global progress on climate change, potentially leading to more severe and costly environmental impacts in the future, such as extreme weather events that affect American communities.
- American industries focused on renewable energy and green technology may lose a competitive edge in a growing global market.
Who's Most Affected:
Primary Groups: The fossil fuel industry (potential beneficiaries), the renewable energy sector (potential negative impact), environmental advocacy organizations, and U.S. diplomats.
Secondary Groups: Agricultural communities vulnerable to climate shifts, coastal residents, and taxpayers whose money would have funded international climate initiatives.
Regional Impact: States with economies heavily reliant on fossil fuel extraction may see short-term benefits, while states that have invested heavily in green technology and are vulnerable to climate impacts, like sea-level rise, may face negative consequences.
Bottom Line: This executive order prioritizes near-term domestic economic objectives over participation in long-term global climate action, a trade-off that will have cascading effects on the U.S. economy, environment, and foreign policy.
Where the Parties Stand
Republican Position: "A Clean Break from Paris"
Core Stance: The Paris Agreement and its associated financial commitments are unfair to the U.S. economy and workers.
Their Arguments:
- ✓ The order fulfills a promise to put American economic interests first.
- ✓ It stops taxpayer dollars from funding climate projects in other nations, particularly competitors like China.
- ⚠️ Concerns that remaining in the agreement legitimizes policies like the Clean Power Plan and exposes U.S. energy producers to legal challenges.
- ✗ The agreement imposes no meaningful, binding obligations on major polluters while punishing the U.S.
Legislative Strategy: Supporting the President's use of executive authority to withdraw and blocking any legislative attempts to remain in or fund the agreement.
Democratic Position: "Climate Action is a Must"
Core Stance: Withdrawing from the Paris Agreement is a reckless abdication of American leadership on a critical global security and economic issue.
Their Arguments:
- ✓ The Paris Agreement is essential for coordinating a global response to prevent the catastrophic impacts of climate change.
- ✓ U.S. leadership in climate action drives innovation, creates clean energy jobs, and enhances national security.
- ⚠️ Concerns that withdrawal cedes influence to other nations and harms U.S. credibility.
- ✗ The move isolates the U.S. and ignores the clear scientific consensus and growing public concern about climate change.
Legislative Strategy: Pushing for resolutions to remain in the agreement, working at state and local levels to uphold Paris goals, and introducing legislation to fund climate initiatives.
Constitutional Check
The Verdict: ⚠️ Questionable
Basis of Authority:
The President cites authority from "the Constitution and the laws of the United States of America." The President's power to conduct foreign affairs is the primary basis. Because the Paris Agreement was entered into as an "executive agreement" rather than a treaty ratified by a two-thirds Senate majority, the constitutional requirements for withdrawal are debated.
Relevant Portion of the Constitution (Article II, Section 1): "The executive Power shall be vested in a President of the United States of America."
Constitutional Implications:
[Executive Power]: Presidents have historically asserted the authority to unilaterally enter into and withdraw from executive agreements as part of their inherent foreign policy powers. The Justice Department's Office of Legal Counsel has previously opined that presidents may unilaterally withdraw from congressional-executive agreements unless a statute specifically restricts that authority.
[Precedent]: The Supreme Court has largely avoided ruling definitively on the matter, often dismissing such cases as political questions to be resolved between the executive and legislative branches (e.g., Goldwater v. Carter). There is an established practice of unilateral presidential withdrawal from some international agreements, but its constitutional foundation remains contested by some scholars.
[Federalism]: While the order dictates federal policy, it has led to pushback from state-level coalitions, like the U.S. Climate Alliance, which have pledged to continue pursuing the goals of the Paris Agreement within their own borders, highlighting the tension between federal and state authority on environmental policy.
Potential Legal Challenges:
Legal challenges are possible but face significant hurdles. Opponents could argue that since Congress has a role in implementing aspects of such agreements (particularly through funding), the President cannot unilaterally withdraw. However, courts have been reluctant to intervene in these disputes between the political branches.
Your Action Options
TO SUPPORT THIS BILL
5-Minute Actions:
- Call The White House: White House Comment Line: (202) 456-1111. "I am calling to express my support for Executive Order 14162 and the President's decision to withdraw from the Paris Agreement."
- Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to support the President's withdrawal from the Paris Climate Accord."
30-Minute Deep Dive:
- Write a Detailed Email: Contact your representatives and explain why you believe this order benefits the country.
- Join an Organization: Advocacy groups that have supported withdrawal include the Competitive Enterprise Institute, The Heritage Foundation, and the American Energy Alliance.
TO OPPOSE THIS BILL
5-Minute Actions:
- Call The White House: White House Comment Line: (202) 456-1111. "I am calling to express my opposition to Executive Order 14162 and the decision to withdraw from the Paris Agreement."
- Call Your Rep/Senators: Capitol Switchboard: (202) 224-3121. "I'm a constituent from [Your City/Town] and I urge [Rep./Sen. Name] to publicly oppose the withdrawal from the Paris Climate Accord."
30-Minute Deep Dive:
- Write a Letter to the Editor: Submit a letter to your local newspaper arguing for the importance of international climate cooperation.
- Join an Organization: Advocacy groups that oppose withdrawal include the United Nations Association of the USA, Amnesty International, the U.S. Climate Alliance, and various environmental groups like the Sierra Club and Natural Resources Defense Council.