Climate Justice in Crisis: The Global South and the Fallout of USAID’s Shutdown

Contributors: Dr. Nusrat Ehsan, Mashhood Urfi, Nameer Urfi

The abrupt end of USAID’s climate funding has left countries like Pakistan, already grappling with floods, heatwaves, and glacial melt, struggling to meet climate goals. This policy brief highlights the cascading impacts of this funding withdrawal and outlines pathways to financial resilience for the Global South.

Key challenges include the collapse of the energy sector, with a 26% rise in coal-fired power production in 2023 as renewable projects stall, and $200M worth of clean energy projects being halted, exacerbating the climate adaptation gap. Funding barriers remain, with limited success in accessing global climate funds.

Solutions include shifting from aid to autonomy by building independent climate funds, boosting local manufacturing of solar panels, leveraging green finance, and strengthening climate diplomacy for equitable representation.

This brief offers actionable strategies to reduce donor dependency, accelerate renewable energy transitions, and secure climate justice.

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