The U.S. has delayed a $2.6 billion climate finance package for South Africa, affecting a $500 million disbursement by the CIF. This delay comes as part of a broader pattern of reduced U.S. participation in multilateral climate initiatives. Future discussions regarding the funding will occur in June.
The United States has postponed a significant $2.6 billion climate finance initiative intended for South Africa, with specific reference to a $500 million disbursement by the Climate Investment Funds (CIF). This funding was anticipated to release an additional $2.1 billion from multilateral development banks and other financial institutions. A renewal of discussions regarding this disbursement is expected during CIF meetings scheduled for June.
The CIF is recognized as one of the largest multilateral funds dedicated to promoting climate solutions in developing nations. If the postponement is verified, it would represent another decision reflective of the former administration under Donald Trump, which focused on reducing involvement in international climate initiatives. Notably, in March, the United States also withdrew from the board of the United Nations’ climate damage fund, affecting support for countries most vulnerable to climate-related disasters.
Requests for comments from the U.S. Treasury and CIF have yet to receive a response from Reuters. This development emphasizes the ongoing transition and challenges in international climate finance, particularly concerning commitments from major economies.
In summary, the delay of the $2.6 billion climate finance package to South Africa indicates a significant shift in the U.S. approach to international climate funding, particularly under the former Trump administration’s policies. The anticipated funding from the CIF, which could potentially mobilize further resources, remains uncertain as discussions will be revisited in June. The withdrawal from multilateral initiatives signals a broader trend affecting global climate collaboration.
Original Source: m.economictimes.com
