US Withdraws from the Paris Agreement under Trump’s "Make America Great Again (MAGA) Agenda"

Donald J Trump was sworn in as the new president of the United States second time in a row and took the oath on 20th January 2025. Following the inauguration, he delivered a speech outlining key goals of his renowned and ambitious Make America Great Again (MAGA) agenda. As his administration begins, the future of environmental, social, and governance (ESG) priorities in the United States appears to hinge on the interplay between federal policy shifts, corporate responses, and broader global dynamics. President Trump’s speech touched upon environmental policy, gender and race space exploration, and more. His remarks, particularly on withdrawing from the Paris Climate Agreement, ending DEI mandates, and eliminating electric vehicle (EV) incentives, sparked debate among various stakeholders and advocacy groups.

Withdrawal from the Paris Agreement:

The United States is one of the largest emitters of greenhouse gases. Its withdrawal would reduce the collective efforts to curb global emissions, potentially making it harder for the world to meet the Paris Agreement targets and increasing the risks of climate-related disasters (heatwaves, storms, flooding, sea level rise) both in the US and worldwide. The International Energy Agency (IEA) estimated that without full US participation, the world's efforts to meet the 2 °C target would become much harder.

By 2025, the nation’s failure to meet its Paris targets could result in missed global emissions reduction of roughly 0.2 to 0.3 gigatons of CO2 per year. This withdrawal includes the halting of all financing related to the Paris Agreement and terminating the US International Climate Finance Plan.

Steven Guilbeault, Canada’s minister of environment and climate change, told journalists: “It is deplorable that the President of the US has decided to pull out of the Paris Agreement. It is, unfortunately, not the first time. The Paris Agreement is bigger than one country, it is 194 countries who have collectively continued to fight climate change despite the absence of the US. Even though the federal government no longer seems interested in fighting climate change, we see a lot of support from US states and the private sector. It is ironic that the president would do that when California is going through the worst forest fire season in its history.”

The African Group of Negotiators calls the US withdrawal from the Paris Agreement a direct threat to global climate efforts, leaving vulnerable nations without critical financial and technical support.

Termination of DEI/DEIA Mandates and the Impact on Federal Employee Performance Reviews:

This order will terminate DEI/DEIA mandates, policies, programs, preferences and activities. According to this order, federal employee performance reviews shall reward individual initiative, skills, performance and hard work. Reviews will not under any circumstance consider DEI/DEIA factors, goals, policies, mandates or requirements. The absence of DEI programs could lead to environments where underrepresented groups feel marginalized, leading to reduced participation, lower morale, and even higher turnover rates. Federal or state-level efforts to eliminate DEI programs could create conflicts with legal mandates aimed at preventing discrimination and promoting fairness in hiring and admissions.

High-profile companies like Amazon, Meta, McDonalds and Target have been cancelling their DEI programs since last year. Tech giant Google scrapped its diversity hiring goals amid Trump’s Executive Order. Amazon had removed several mentions of DEI, Black people, and LGBTQ+ persons from its “Policy Positions” page. Although others, like Costco and Apple, have said they’re retaining theirs. The backlash against DEI isn’t just about individuals rejecting change; it reveals deeper tensions in how people see themselves and their place in society.

Declaring a national energy emergency:

Trump’s declaration directed the heads of federal agencies “to identify and exercise any lawful emergency authorities available to them” to facilitate the leasing, siting, production and generation of domestic energy sources including on federal lands. According to this order, permitting the use of domestic energy resources, including, but not limited to, on Federal lands by executive departments and agencies. The order, among other things, calls for accelerating the delivery of energy infrastructure and giving emergency fuel waivers for gasoline. As demonstrated by past administrations that gave fossil fuel development precedence over renewable energy projects, the repeal of laws intended to lower emissions may have short-term economic advantages but may also result in long-term environmental problems. The purpose of President Trump’s order is to declare a “national energy emergency” based on his assertion that the United States has unrealized energy resources and that the previous administration’s policies caused “a precariously inadequate and intermittent energy supply” and “unreliable grid;” led to high energy prices; and threaten the economy, national security, and foreign policy.

On Tuesday 9th April, President Trump also signed executive orders aimed at reviving the coal industry, allowing older coal-fired power plants scheduled for closure to remain operational due to rising electricity demand from data centers, AI, and electric vehicles. The orders direct federal agencies to identify coal reserves, ease mining restrictions, and prioritize leasing on public lands. Additionally, Trump granted coal plants a two-year exemption from federal emission rules targeting toxic pollutants like mercury and arsenic. The EPA, under new leadership, also created a system for companies to request exemptions from environmental regulations introduced during the Biden administration under the Clean Air Act.

Revocation of the electric vehicle mandate:

President Donald Trump signed an executive order indicating his intention to reverse much of his predecessor's legacy on the promotion of electric vehicles. He also promised to repeal the so-called electric car requirement. Trump has directed his agencies to level the playing field for vehicles and consider eliminating policies that favour EVs. The executive order signals a move to repeal the $7,500 federal tax credit for new EV purchases, a significant incentive that had been part of the 2022 climate law. According to industry projections, Trump’s executive actions could reduce the market share of EVs by 28% by the end of the decade compared to earlier forecasts. A report by Expert Market Research estimates that the global electric vehicle market reached a volume of nearly 31,061 thousand units in 2024. It is anticipated to grow at a CAGR of 13.20% during the forecast period of 2025 and 2034 and reach around 107,320 thousand units by 2034. In 2024, the United States accounted for a substantial market share (6.8%), indicating a significant presence in the market. Trump’s order calls for eliminating subsidies and emissions waivers that could boost EV sales. The orders and related administration policies could lower the adoption rate of EVs. Hence, they will make up 23 percent of sales by 2030. Trump could also affect the US Postal Service’s (USPS) plan to acquire at least 66,000 battery-electric delivery vehicles by 2028 to replace its aging fleet.

Since the start of his second presidential term, Donald Trump has made a series of bold and attention-grabbing policy announcements. In a recent speech, he focused on topics such as deregulation, promoting energy independence, withdrawing from the Paris Climate Agreement, rolling back diversity, equity, and inclusion (DEI) initiatives, declaring a "national energy emergency" to speed up fossil fuel production, and removing incentives for electric vehicles (EVs). These measures are aligned with the interests of his political base and certain industry groups. However, they have also raised concerns among critics who caution that such policies could contribute to environmental harm, reduce progress on social equity, and hinder the development of clean energy alternatives. Supporters view these actions as steps toward economic self-reliance, while opponents argue they could lead to global isolation and setbacks in addressing climate challenges.