US Withdrawal from Paris Climate Agreement: Implications for Indonesia’s Climate Future

The United States has formally notified its withdrawal from the Paris Climate Agreement, effective January 27, 2026, raising concerns over global climate commitments. Initially signed in 2015 by nearly 200 nations, the agreement aims to reduce greenhouse gas emissions and limit global warming to no more than 1.5 degrees Celsius above pre-industrial levels. Donald Trump's decision to exit the accord during his first term in 2017 has cast a shadow over Washington's involvement in a significant clean energy partnership with Indonesia, potentially pushing the Southeast Asian nation towards China for climate funding.

The Paris Climate Agreement, a historic pact aimed at mitigating climate change and its impacts, was disrupted by the US's initial withdrawal in 2017. This move, finalized over three years, created uncertainty regarding climate finance for developing nations. The agreement, a cornerstone of international efforts to combat climate change, focuses on reducing emissions to prevent catastrophic global temperature increases beyond pre-industrial levels recorded in the late 19th century.

Former US President Joe Biden rejoined the Paris Agreement in 2021, marking a renewed commitment by the US to global climate initiatives. However, the recent notification of withdrawal has reignited doubts about the US's long-term dedication to international climate efforts. The decision raises significant questions about the future of the US-Indonesia clean energy partnership, a crucial element of Indonesia's strategy to address climate change.

Indonesia, a key player in regional climate action, faces a critical juncture. With Washington's commitment now uncertain, Indonesia may seek alternative sources of climate funding. China's growing influence in global climate finance presents an attractive option for Indonesia as it navigates this evolving landscape.

The US's withdrawal underscores broader concerns about international climate cooperation. The Paris Agreement's goal of uniting nations in the fight against climate change depends on consistent and reliable participation from major global players. The uncertainty introduced by the US's exit could have ripple effects on developing countries reliant on promised climate finance and support.