USAID cancels thousands of contracts, cutting climate and energy programs
The U.S. Agency for International Development has canceled over 5,500 contracts, including at least 130 tied to climate and clean energy initiatives, affecting projects worldwide.
Sara Schonhardt and Taylor Miller Thomas report for E&E News.
In short:
- The Trump administration’s cuts include contracts for deforestation prevention, renewable energy, and climate adaptation.
- Canceled projects include a $1.4 million grant for South Africa’s Just Energy Transition Partnership and a $57 million initiative to support Colombia’s climate goals.
- The funding freeze follows Trump’s "America First" policy, prompting legal battles and concerns about global climate resilience.
Key quote:
“It means more people are going to be exposed to the impacts of climate change and have no tools to address that, it’s going to mean more carbon in the atmosphere and it’s probably going to mean more forest and biodiversity loss because they were moving pieces across these four strategies.”
— Jake Schmidt, senior director of international climate at the Natural Resources Defense Council
Why this matters:
The U.S. Agency for International Development has long been a pillar of global climate efforts, directing funds and expertise to countries grappling with the dual challenges of development and environmental sustainability. Its initiatives support a broad spectrum of efforts, from helping communities install renewable energy infrastructure to training local governments on climate resilience strategies. Many of these programs are designed to help nations move away from fossil fuels, protect forests, and strengthen their ability to withstand extreme weather events.
As climate change intensifies, potential cuts to these programs raise alarms among experts. They argue that pulling back on funding could slow or even reverse progress in regions already vulnerable to environmental instability. Without USAID’s financial and technical assistance, developing nations may struggle to maintain momentum toward clean energy transitions, leaving them more reliant on coal, oil, and gas. In some cases, the loss of support could mean weaker protections against deforestation, a major contributor to rising carbon emissions.
Learn more: USAID shuts down climate programs aimed at preventing unrest
