The U.S. has delayed a $2.6 billion climate finance package for South Africa, causing concerns about possible full withholding of funds. Recent actions included stopping a $500 million disbursement from the Climate Investment Funds. This delay may impact additional funding from other sources and follows a trend of reducing participation in multilateral climate initiatives by the U.S. Treasury and CIF have not commented on the situation.
The United States has decided to postpone the allocation of a $2.6 billion climate finance package intended for South Africa. This delay has raised apprehensions regarding the potential withholding of these funds, according to a report from Bloomberg News citing anonymous sources.
In a recent action, U.S. representatives halted the approval of a $500 million disbursement linked to the World Bank’s Climate Investment Funds (CIF) for South Africa. This funding was anticipated to catalyze an additional $2.1 billion from various multilateral development banks and financial institutions. A renewed effort to secure this disbursement is reportedly planned during CIF meetings scheduled for June.
CIF represents one of the largest multilateral funds dedicated to fostering climate solutions within developing nations. Should this postponement be confirmed, it would align with several initiatives from former President Donald Trump’s administration aimed at reducing U.S. engagement in global climate efforts. Recently, in March, the U.S. also exited the board of the United Nations’ climate damage fund, which provides support to vulnerable countries confronting climate-related challenges.
Neither the U.S. Treasury nor the Climate Investment Funds responded immediately to requests for comments from Reuters, leaving the status of the financing uncertain.
The delay in the U.S. climate finance package for South Africa raises significant concerns about the future of these funds and U.S. commitment to international climate agreements. This action reflects a potential continuation of a trend seen during former administration policies that prioritized disengagement from global climate initiatives. The eventual outcome will depend on forthcoming discussions at future CIF meetings.
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