The Scoop
The Trump administration has weakened the budget of the International Renewable Energy Agency (IRENA) after falling behind on payments totaling $10 million, according to a person familiar with the matter.
The Abu Dhabi-based group joins dozens of other agencies hobbled by the US’ broader retreat from global causes: IRENA is one of 66 international organizations, many of them linked to climate action, that the Trump administration said at the start of the year it would withdraw from.
But even before that, the US had not paid $5 million in dues to the agency in 2025 and is not expected to make its annual contribution this year either, leaving IRENA to grapple with a 22% hole in its operating budget, according to the person, who spoke on condition of anonymity. The budget gap has led the agency to halt hiring senior staff in recent months, backfilling with interns and more junior roles, the person said.
An IRENA spokesperson said that membership withdrawal “takes effect at the end of the year in which it is expressed” and “shall not affect … contractual obligations or its financial obligations for the year in which it withdraws.”
The US Embassy in Abu Dhabi did not immediately respond to a request for comment.
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With some 175 staffers, IRENA works with 170 member nations plus the EU to accelerate the development of renewable energy assets. Expanding wind and solar projects in emerging economies is a particular focus and its services include policy consulting and market analysis.
IRENA opened its headquarters in Abu Dhabi in 2015, after the UAE capital — which has fashioned itself as a global hub for conversations about the energy transition — won a bid to host the agency.
IRENA is now looking to raise private funds following the US withdrawal, Director-General Francesco La Camera told reporters in Abu Dhabi on Sunday. An annual meeting of IRENA’s members this week marks the unofficial kickoff to Abu Dhabi Sustainability Week (ADSW), where some 50,000 people, including energy executives, policymakers, investors, and entrepreneurs, will gather to discuss and cut deals related to the energy transition.
Kelsey’s view
This year’s theme at ADSW, “The Nexus of Next: All Systems Go,” points to the fact that, even during a week dedicated to sustainability, the vibes in the UAE are decidedly energy-agnostic. Soaring demand for electricity globally, driven largely by mass electrification and the buildout of data centers, as well as the Trump administration’s retreat from the Biden-era green agenda, has changed the narrative on renewable energy as investments in fossil fuels continue to increase. The UAE, a US ally and major oil exporter with big, global renewable energy ambitions, is walking a fine line.
Still, I expect to hear this week that the momentum is undeniable: Renewables accounted for 92% of new power generation capacity added globally last year, with around 700 gigawatts expected to come online in 2026, according to IRENA. And while the agency finds itself now in troubled times, it is unlikely Abu Dhabi would allow IRENA to fail in its own backyard.
Notable
- A fact sheet from the White House details the withdrawal from 66 international organizations.
- NPR examines what the impact of the withdrawal might be.