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00:00FOR CLIMATE CHANGE AT THE WORLD BANK. ANDREW, GREAT TO HAVE YOU! TELL US A BIT MORE ABOUT YOUR INITIAL REACTION TO THIS ANNOUNCEMENT WE GOT. CAN THE U.S. DROPPING OUT KILL THE PARIS AGREEMENT? > > NO, IT CAN ' T. BUT LOOK, THIS IS A SAD DAY FOR THE GLOBAL ENVIRONMENT. IT ' S A BAD DAY FOR ASIA. BUT PARTICULARLY, IT ' S A BAD DAY FOR THE UNITED STATES. I MEAN, THE UNITED STATES IS GOING TO BE HURT ECONOMICALLY QUITE BADLY BY THIS. AND IT ' S ALSO GOING TO BE HURT POLITICALLY. I COME FROM THE UNITED NATIONS KINGDOM. I KNOW WHAT IT ' S LIKE TO BE A COUNTRY IN DECLINE. AND THE UNITED STATES ' UNITED STATES ' INFLUENCE IN THE WORLD IS GOING TO PROFOUNDLY DIMINISH AS A RESULT OF THIS. LET ' S HOPE THAT A FUTURE PRESIDENT CAN REFOUND THAT. BUT IT ' S A BAD SITUATION. AND THE FACT THAT -- THE FACT THAT PRESIDENT TRUMP -- THE FACTS THAT PRESIDENT TRUMP GAVE TODAY WERE PROFOUNDLY WRONG. HE SAID THIS IS GOING TO HURT THE AMERICAN ECONOMY, $2.5 TRILLION AND SO ON. THAT IS BASED ON AN AMAZINGLY OLD-FASHIONED VIEW AND A VERY LOW VIEW OF THE PRIVATE SECTOR. IT SEEMS THERE WILL BE NO FURTHER GAINS IN TECHNOLOGY. IT ASSUMES THAT THE AMERICAN ECONOMY SIMPLY CAN ' T ADAPT QUICKLY AND THAT THE PRIVATE SECTOR SIMPLY ISN ' T NIMBLE ENOUGH. THE MODERN ANALYSIS THOUGHS THAT SUFFICIENTLY -- SHOWS THAT ACTUALLY SMART CLIMATE POLICIES LEAD TO MORE INVESTMENT, MORE TECHNOLOGY, MORE ECONOMIC GROWTH. > > ANDREW, ARE THERE RETALIATORY MEASURES HERE? I MEAN, SOME OF THE BUSINESS COMMUNITY, SOME OF THE C.E.O. ' S MENTIONED THIS IS A POTENTIAL RISK IN THE U.S. DID EXIT OUT OF THIS PARIS CLIMATE DEAL. IF THE WORLD ' S LARGEST ECONOMY -- ONE OF THE BIGGEST POLLUTERS IN THE WORLD, IF THEY ' RE DROPPING OUT OF THIS DEAL, WHAT ' S IT GONNA TAKE, OR IS IT GONNA TAKE NOT TOO MUCH FOR SOME OF THESE OTHER NATIONS, OUT OF THE 190 OR SO, TO SAY I ' M GONNA DROP OUT AS WELL? > > WE ' VE SEEN NO EVIDENCE OF THAT. ON THE CONTRARY, WE SEE A STRENGTHENING OF RESOLVE. TOMORROW MORNING -- WELL, TODAY, SAYASIA TIME, THE EUROPEAN UNION AND CHINA WILL ANNOUNCE A MAJOR NEW PARTNERSHIP, REALLY INSPIRING THE WILL. THEY WILL FORGE NEW TECHNOLOGICAL RELATIONSHIPS. THEY WILL LOOK AT ENERGY EFFICIENCY, RENEWABLE ENERGY. IT WILL FORGE A PARTNERSHIP IN THE DEVELOPING WORLD BETWEEN THE EUROPEAN UNION AND CHINA. AND, OF COURSE, THAT ' S JUST ONE THING THAT ' S HAPPENING. BUT WE ' RE CERTAINLY SEEING A LEVEL OF LEADERSHIP NOW, CHINA AND EUROPE BEING TWO. WE ' RE HOPEFUL THAT INDIANA ALSO WILL -- INDIA ALSO WILL JOIN US. THE FACT THAT CHINA, THE SAME WEEK THAT PRESIDENT TRUMP ANNOUNCED THE EADVICE RAITION OF AMERICAN-CHINA POLICIES, ANNOUNCED ANOTHER $360 BILLION INVESTMENT IN RENEWABLE ENERGY. AND THE CLOSING OF POWER PLANTS AND, OF COURSE, THEY ' RE GOING TO INTRODUCE AN ECONOMY-WIDE CAP AND TRADE SYSTEM IN CHINA. CHINA THIS YEAR INVESTED INTERNATIONALLY IN OTHER COUNTRIES. SO, YOU KNOW, THINGS ARE OUT THERE, HAPPENING.

Why U.S. Paris Accord Dropout Won't Kill Climate Pact

President Trump announced he will withdraw the U.S. from the Paris climate pact, saying it favors other nations at the expense of American workers. World Resources Institute President and CEO Andrew Steer speaks on "Bloomberg Daybreak: Asia." (Source: Bloomberg)

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