Climate Change, Trade, and Policy: What the U.S. Withdrawal Means for Canada’s Green Future

Should We Worry About the U.S. Leaving the Paris Agreement?

With so much happening around the globe, it’s easy to feel overwhelmed by negative news. Climate change, in particular, can stir anxiety, especially when governments roll back their environmental commitments. One such moment was the U.S. withdrawing from the Paris Agreement. But should we really be concerned about this decision? According to Assaad Razzouk, host of The Angry Clean Energy Guy podcast, the answer is no (source: The Angry Clean Energy Guy) .

What Is the Paris Agreement?

The Paris Agreement, adopted in 2015, is a global climate accord where nearly every country committed to reducing greenhouse gas emissions to limit global warming to well below 2°C, and ideally, to 1.5°C. Each country sets its own climate targets, known as Nationally Determined Contributions (NDCs), and updates them every five years. The agreement fosters international collaboration, financial support for developing nations, and accountability for climate commitments (source: United Nations).

Why Did the U.S. Leave?

In 2017, the Trump administration announced the U.S. would withdraw from the Paris Agreement, citing concerns about the deal’s impact on American workers and industries. By 2020, the withdrawal became official, raising concerns that this move would stall global climate progress. However, when President Biden took office in 2021, the U.S. rejoined the agreement, highlighting how political shifts can dramatically influence climate policies (source: NPR).

Fast forward to 2025, and the U.S. has again withdrawn from the Paris Agreement under the Trump administration. The decision, marked by Executive Order 14162 titled "Putting America First in International Environmental Agreements," has reignited fears of setbacks in global climate efforts. This executive order, signed in January 2025, directs the U.S. Ambassador to the United Nations to notify the Secretary-General of the United States' withdrawal from the Paris Agreement, making the withdrawal effective immediately (source: whitehouse.gov).

The U.S. withdrawal has raised concerns among global leaders. European Union countries, Britain, and climate-vulnerable nations have warned that this move could delay the next global climate assessment by the U.N.'s Intergovernmental Panel on Climate Change (IPCC) (source: Reuters). Additionally, American officials have notably been absent from several key international climate meetings, raising alarms about the U.S.’s commitment to global climate negotiations moving forward (source: The Guardian).

Why the Transition to Clean Energy Is Unstoppable

Despite political shifts, Assaad Razzouk argues that the move toward clean energy and sustainability is already well underway. Here’s why:

Market Forces Favor Renewable Energy – Solar, wind, and battery storage are now cheaper than fossil fuels in many parts of the world, making green energy the future for businesses and investors. As of 2023, renewable energy sources accounted for more than 70% of global energy investments, with solar and wind being the dominant contributors (source: International Energy Agency).

Corporate and Local Action – Even when the federal government pulled back, many U.S. states, cities, and companies pledged to reduce emissions, keeping the momentum for clean energy strong. Notable U.S. states such as California and New York continue to implement ambitious clean energy policies, and companies like Google and Tesla are leading the charge in renewable energy adoption (source: The Guardian).

Public Demand for Sustainability – Consumers are increasingly backing brands and policies that prioritize sustainability, compelling industries to adapt and adopt greener practices. According to a 2023 survey by Nielsen, 73% of global consumers are willing to pay more for sustainable products, demonstrating a shift in consumer behaviour towards sustainability (source: Nielsen).

Global Momentum – The rest of the world continues to advance clean energy, and the U.S. risks falling behind in the global green economy race if it does not stay engaged. Countries like China and the EU are significantly ramping up investments in clean energy infrastructure, with China leading the world in solar panel production and electric vehicle adoption (source: World Economic Forum).

Impacts on Canada: Opportunities and Challenges

While the global transition to clean energy continues, the U.S. withdrawal from the Paris Agreement carries specific implications for Canada.

1. Diplomatic and Trade Tensions - Canada has committed to ambitious climate targets, but if the U.S. pulls out, it could create tensions in trade and policy alignment. With strong economic ties between the two countries, if U.S. industries don’t face the same emissions regulations, Canadian businesses following stricter climate policies might find themselves at a competitive disadvantage (source: Government of Canada).

2. Cross-Border Emissions and Climate Impact - As Canada’s largest neighbour and trading partner, the U.S.'s climate actions (or lack thereof) directly affect Canada. A rollback of U.S. climate commitments could lead to increased emissions south of the border, which would likely impact Canada’s air quality, ecosystems, and efforts to meet its own climate targets (source: Human Rights Watch).

3. Strengthened Canadian Climate Leadership - With the U.S. stepping back from its commitments, Canada has an opportunity to position itself as a leader in global clean energy and sustainability efforts. By pushing forward stronger climate policies and investing in renewable energy, Canada could set an example on the world stage, showing that ambitious climate action is both possible and necessary (source: Policy Options).

4. Economic Opportunities in Clean Energy - If U.S. federal policies slow the pace of clean energy growth, Canada could attract more green investment. Companies seeking stable climate policies and incentives for renewable energy might turn to Canada as a more reliable alternative, strengthening its green economy and job market (source: America is All In).

5. Collaboration with U.S. States and Businesses - Although the U.S. federal government has withdrawn, many states, cities, and corporations are still committed to reducing emissions and transitioning to sustainable energy. Canada has an opportunity to strengthen its partnerships with these subnational actors, ensuring continued progress on North American climate goals (source: White & Case LLP).

   
   

Looking Ahead

While political decisions matter, the shift to a cleaner, more sustainable world is already in motion. Technology, economics, and public awareness are accelerating the transition at an unprecedented pace. Political setbacks may cause temporary delays, but they cannot reverse the broader course of change.

Canada, in particular, has a chance to strengthen its leadership in global climate efforts and ensure that the North American region remains at the forefront of the green energy revolution.

To dive deeper into this topic, listen to Episode 89 of The Angry Clean Energy Guy podcast: Listen here.