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What USAID Cuts Mean for Climate Action, Aid Efforts

Kevin Yego February 6, 2025 3 min read
USAID

USAID cuts is likely to claw back the gains in the fight against climate change. Photo | courtesy.


The recent cuts to the United States Agency for International Development (USAID) have raised serious concerns about the future of global climate initiatives.

USAID has long played a crucial role in funding climate resilience programs, supporting developing nations in their efforts to adapt to climate change, and mitigating environmental degradation. With its funding slashed, the ripple effects are expected to be felt worldwide, especially in vulnerable regions that depend on U.S. climate aid.

According to Associated Press, USAID has been one of the largest financial backers of climate-related projects, particularly in developing countries that are disproportionately affected by climate change. The agency has supported efforts such as reforestation programs, clean energy initiatives, climate-smart agriculture, and disaster preparedness. The loss of this funding means that many of these programs are at risk of being scaled down or completely discontinued, leaving millions of people more vulnerable to climate-related disasters.

ALSO READ: Why Climate Change Is Our Greatest Global Health Risk

One of the biggest concerns following the USAID cuts is the impact on disaster preparedness and response. Many climate-vulnerable countries rely on USAID for support in building early warning systems and emergency response infrastructure to combat hurricanes, droughts, and floods.

Without this funding, these nations will struggle to respond to extreme weather events, increasing the likelihood of food shortages, displacement, and economic instability. According to the World Economic Forum, USAID-funded projects have been instrumental in helping communities predict and prepare for climate disasters, and without them, millions of lives could be at risk


Another major consequence of the USAID funding cut is its effect on renewable energy projects. Over the years, USAID has helped fund solar, wind, and hydroelectric power initiatives in developing nations, reducing their reliance on fossil fuels and supporting a global transition toward clean energy.

As reported by Reuters, USAID has been a critical player in advancing climate-friendly policies that encourage the adoption of green technology and sustainable energy solutions. With its withdrawal, many of these projects face cancellation, which could slow down the global shift away from fossil fuels.

The loss of USAID funding also means a setback in the fight against deforestation and land degradation. Many developing countries rely on USAID support to fund reforestation efforts, sustainable farming practices, and biodiversity conservation programs. Forest conservation is key in absorbing carbon emissions, and the funding cut threatens efforts to combat deforestation in regions such as the Amazon, the Congo Basin, and Southeast Asia.

A report by the United Nations Environment Programme (UNEP) warns that without continued investment, global deforestation rates could accelerate, leading to increased carbon emissions and biodiversity loss.

USAID’s funding cuts will also have serious economic implications for the communities that rely on climate-related programs for their livelihoods. According to Politico, millions of people, particularly in Africa and Asia, depend on USAID-supported agricultural and climate-resilient employment programs.

These initiatives provide training and resources for farmers, fisherfolk, and small-scale entrepreneurs who rely on sustainable practices to make a living. The funding cuts could result in job losses, increased poverty, and economic instability, making it even harder for communities to recover from climate shocks.

Another major concern is the effect on climate diplomacy and international cooperation. USAID has historically played a key role in supporting global climate negotiations and ensuring that developing nations have a voice in climate discussions. With its funding reduced, the United States risks losing its leadership position in global climate governance, potentially allowing other countries with less ambitious climate policies to shape international climate agreements.

This move could weaken global efforts to tackle climate change, as fewer resources will be available to support vulnerable nations in their climate adaptation and mitigation efforts.

The USAID cuts could also have a negative impact on scientific research and innovation in the climate sector. Many universities and research institutions rely on USAID grants to conduct studies on climate modeling, carbon capture, and sustainable land management. With funding slashed, advancements in climate science could slow down, limiting the world’s ability to develop new strategies for reducing emissions and adapting to a changing climate.

Experts warn that a reduction in climate research funding could set back progress by decades, leaving policymakers without the data needed to make informed decisions.

Ultimately, the decision to cut USAID funding represents a major setback in the global fight against climate change. It threatens disaster preparedness, renewable energy projects, reforestation efforts, economic stability, international climate diplomacy, and scientific research.

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