On 21th of January, 2025, US President Donald Trump announced the country’s withdrawal from the global Paris climate accord. This is the second time the US has withdrawn from the accord, with the first withdrawal ordered by Trump during his first term. The president stated that the Paris Agreement imposes heavy burdens on the American economy, while major polluting countries such as China, India, and Russia are not showing strong commitment to substantially reduce their emissions.

Trump’s decision can trigger some implications:

• Corporations’ interest in carbon offsetting may decrease due to lower federal endorsement of climate goals

• Carbon projects development may be delayed, since these projects depend on long-term return from carbon credit sales

• Other countries like China and the European Union will gain competitive advantage in the booming clean energy economy

However, reflecting from the previous withdrawal, the US voluntary carbon market was not significantly hindered. With high demand from the private sector, the market continued to grow in terms of transaction volume and the range of projects receiving funding. The nature of the carbon market is global, and with the Article 6.4 of the Paris Agreement in force, it is likely to grow with international carbon trading. The global agreement remains essential, and we can be positive that other nations will stay committed despite the US’ departure.

Visit our page to keep updated on the latest carbon market updates. If you want to know more, you can read about Article 6 here.