Trump administration wants to drop climate and tax justice goals from upcoming global development deal

The United States is quietly working to weaken a major global agreement aimed at helping developing countries deal with climate change, debt, and economic hardship, according to a draft document seen by Reuters.

The internal United Nations draft, prepared ahead of the Fourth International Conference on Financing for Development (FFD4) in Seville this June, shows that the Trump administration has raised objections to multiple reform measures, including those related to climate change, gender equality, fair taxation, and fossil fuel subsidies.

Instead, the US is pushing for softer language that focuses on “resilience” and “effectiveness” rather than binding commitments to reform the global financial system.

“This conference is about bringing the world’s leaders together and setting the rules for development financing for the next decade,” said Tom Mitchell, Executive Director of the International Institute for Environment and Development.

What the US Wants Removed

The negotiating draft, dated April 11, was compiled with input from representatives of Mexico, Nepal, Norway, and Zambia, with the help of the UN secretariat. It shows that the US wants to delete or water down several key proposals, including:

• A “package of reforms” to reshape the global financial system

• A call to end inefficient fossil fuel subsidies

• Plans to improve tax transparency and crack down on tax avoidance

• Proposals for wealth or pollution taxes to fund development goals

• A paragraph urging companies to pay tax where they operate

• A pledge to maintain essential public funding during global shocks

The US has also objected to including terms like “climate,” “gender equality,” and “sustainability” in the final agreement.

Global Pushback Grows

While the US remains a powerful voice in the talks — especially as the largest shareholder in both the World Bank and IMF — many countries, including France, Kenya, and Barbados, are pushing back by calling for new tax systems and climate-focused finance tools.

The goal is to help poorer nations recover from worsening climate disasters and invest in clean energy, instead of staying stuck with outdated fossil fuels.

Yet the Trump administration’s position could shape the final outcome, since the agreement must be adopted by consensus.

Other nations opposing parts of the draft include Russia, Saudi Arabia, and China.

US Development Priorities Shift

Despite its opposition to key reforms, the US still supports some aspects of development financing—such as working with the private sector, encouraging financial literacy, and fostering innovation.

But critics say this isn’t enough.

The US has already withdrawn from the Paris Climate Agreement, cut foreign development aid by over 80%, and backed policies that many see as harmful to the global south, including recent trade wars.

Meanwhile, the UN Secretary-General António Guterres is urging nations to set aside differences and focus on concrete solutions at the June conference.

“All countries must be at the table in Seville focused on solutions,” said UN spokesperson Florencia Soto Niño.

What’s Next?

As negotiations continue through May, the fate of the global deal remains uncertain. Any final agreement will need all 193 UN member states to agree, giving the US major influence — and making compromise a likely outcome.

Whether that compromise will be enough to help developing countries prepare for the challenges of climate change and economic inequality remains to be seen.