UN Climate Chief Warns U.S. Exit from Global Climate Pact Could Hurt Economy and Jobs

UN Climate Chief Criticizes U.S. Withdrawal Over Economic Risks

The head of the United Nations climate body has warned that the United States’ decision to withdraw from the UN Framework Convention on Climate Change (UNFCCC) will damage the nation’s economy, jobs, and living standards.[5]

In a statement responding to the move, UN Climate Change Executive Secretary Simon Stiell called the step a “colossal own goal,” arguing it will leave the U.S. “less secure and less prosperous” compared with other major economies that are deepening climate cooperation.[5]

Economic Impact on Households and Businesses

Stiell said the U.S. retreat from climate cooperation will mean higher costs and more volatility for American households and companies across core economic sectors.[5]

• Energy: The statement argues U.S. consumers are likely to face less affordable energy, even as renewable power continues to become cheaper than fossil fuels in many markets.[5]
• Food and agriculture: Climate-driven disasters such as droughts, floods, and storms are expected to hit American crops harder, raising costs and disrupting supply chains.[5]
• Transport and insurance: The UN official warned that worsening climate impacts will push up insurance and transport costs as infrastructure, vehicles, and logistics networks face more extreme weather.[5]

According to Stiell, these pressures could erode purchasing power and add to existing economic strains for U.S. families and small businesses.[5]

Jobs and Manufacturing Competitiveness at Stake

The UN climate chief tied the decision directly to U.S. industrial and labor-market prospects, arguing it will ultimately mean fewer American manufacturing jobs.[5]

He noted that “every other major economy” is accelerating clean energy investment, using it as a key growth engine to boost economic output, energy security, and global competitiveness.[5]

• Clean energy buildout: Other countries are scaling up renewables, electric vehicles, batteries, and grid upgrades, sectors that support large numbers of high-skilled and middle-class jobs.[5]
• Global supply chains: As investment shifts toward clean technologies, the UN warning suggests U.S. firms risk losing ground in export markets and advanced manufacturing if policy support lags behind rivals.[5]

Stiell emphasized that renewables have already overtaken coal as the world’s top energy source, underscoring how global demand is pivoting toward low-carbon technologies.[5]

Financial Risks and Market Volatility

The statement links the U.S. withdrawal to higher long-term economic and financial risk stemming from fossil fuel dependence and climate shocks.[5]

Stiell argued that continued volatility in oil, coal, and gas markets can fuel conflicts, regional instability, and forced migration—factors that in turn can disrupt trade, investment flows, and broader economic stability.[5]

• Infrastructure damage: More frequent and severe weather events are expected to hit U.S. infrastructure—roads, ports, power grids, and industrial facilities—raising repair costs and lowering productivity.[5]
• Capital allocation: Investors may increasingly favor countries with stable, long-term climate and energy strategies, potentially disadvantaging U.S. projects if policy uncertainty persists.[5]

Global Context and U.S. Policy Reversal

The UNFCCC statement places the U.S. move in sharp contrast with the rest of the world, noting that “all other nations are stepping forward together” to implement the Paris Agreement and scale up climate action.[5]

Stiell stressed that the U.S. was originally instrumental in creating both the UNFCCC and the Paris Agreement, calling them frameworks that are “entirely in its national interests” because of the economic and security benefits of coordinated climate policy.[5]

The withdrawal, he argued, represents a reversal of that role and a step back from global leadership on an issue that is increasingly intertwined with trade, technology, and macroeconomic planning.[5]

Door Left Open for Future U.S. Reentry

Despite the sharp criticism, the UN climate chief emphasized that the door remains open for the United States to rejoin the climate convention in the future, as it has done previously with the Paris Agreement.[5]

He highlighted what he described as a “vast” commercial opportunity in clean energy, climate resilience, and advanced electrical technologies, suggesting that U.S. investors and businesses may continue pursuing low-carbon projects even if federal policy shifts.[5]

• Private-sector momentum: The statement implies that market forces and technological innovation could keep pushing U.S. companies toward cleaner technologies to stay competitive globally.[5]
• State and local action: While not detailed in the UNFCCC statement, many U.S. states and cities have historically maintained their own climate and energy strategies, which could partially offset federal policy changes.

According to Stiell, UN Climate Change will continue working with the rest of the world to expand climate cooperation, leaving it to future U.S. leaders and lawmakers to decide when to re-engage with the global framework.[5]