USAID Cuts Create US$1 Billion Green Funding Gap, Report Says
A new analysis from One Earth Partners details how the 2025 termination of USAID's environmental funding has impacted projects and economies in Vietnam, Bangladesh, and other nations.
One Earth Partners Details Funding Gap
One Earth Partners, a consultancy, has released a report detailing a US$1 billion funding deficit for global environmental initiatives following the 2025 closure of USAID's environmental portfolio. The analysis, based on 150 interviews across five countries, including Vietnam and Bangladesh, indicates widespread disruption to conservation and clean energy projects.
This funding cut affects a diverse range of activities, from plastic waste collection in East Africa to wildlife protection in Vietnam, nearly two years after the agency's funding withdrawal.
Impact on Past Programmes
The report, authored by former USAID officials Monica Bansal and Hadas Kushnir, is the first comprehensive review of the agency’s environmental impact. Before its shutdown, USAID allocated significant funds, spending US$365.75 million on biodiversity conservation, US$256.5 million on climate adaptation, and US$247 million on clean energy in the 2024 fiscal year.
These funds also supported natural climate solutions, ocean plastics, and pollution control, totalling US$232.25 million. Specific projects, such as training officials in Colombia and Peru to monitor Amazon deforestation, were terminated.
Specific Country Consequences
The withdrawal of USAID support has had direct consequences for local projects. In Bangladesh, a long-running initiative to develop nature-friendly ecotourism businesses in rural communities stalled, including one for the Baikka Beel wetland.
In Kenya, Daniel Sopia, CEO of the Maasai Mara Wildlife Conservancies Organization, reported a US$6.5 million grant loss, forcing staff layoffs and a 72 per cent budget cut. This halted plans for new conservancies vital for securing movement corridors for elephants and other wildlife.
The One Earth Partners report aims to identify these funding gaps for potential new donors. For Asian economies, the cessation of these long-term, stable grants means governments and private entities may need to assume greater financial responsibility for environmental protection and sustainable development projects.
The resulting fragmented approach to funding could increase operational costs for businesses and non-profits in sectors such as ecotourism, clean energy, and conservation across the region, necessitating alternative capital flows.
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