Trump's Paris moves reflect policy disruption risks

Significance

The Trump administration's repudiation of the pact's 'no backsliding' framework for global climate governance has been met with near-universal condemnation from other world leaders. The United States is the planet's second-largest emitter of greenhouse gases and the previous administration promised to transfer funding and clean energy technology as part of Washington's contribution to climate-vulnerable countries.

Impacts

• A tightening US labour market will provide statistical cover for the Trump administration's job creation claims for now.
• Alignment of the loose Paris vision with more pressing national energy and anti-pollution goals will keep developing countries on-side.
• EU countries, particularly Germany, are likelier candidates for taking over the US role as provider of funding and technology than China.