The U.S. has delayed a $2.6 billion climate finance package for South Africa, including a $500 million CIF disbursement that could unlock an additional $2.1 billion in funding. This move reflects ongoing reductions in U.S. participation in multilateral climate initiatives initiated under the Trump administration.
The United States has reportedly postponed a $2.6 billion climate finance package intended for South Africa, as indicated by Bloomberg News. This package includes a notable $500 million from the Climate Investment Funds (CIF) that was anticipated to also attract an additional $2.1 billion from various multilateral development banks and other financial entities. Discussions regarding a potential re-approval of this disbursement are expected during CIF meetings scheduled for June.
The Climate Investment Funds represent one of the largest multilateral funds focused on enhancing climate solutions in developing countries. If these postponements are confirmed, they could be seen as a continuation of the efforts made by the former President Donald Trump’s administration to reduce U.S. engagement in multilateral climate initiatives. In March, the United States had withdrawn from the United Nations climate damage fund, which provides support to vulnerable nations adversely affected by climate change.
As of now, neither the U.S. Treasury nor the CIF has provided comments in response to requests made by Reuters. Furthermore, readers are encouraged to follow economic developments through available platforms like WhatsApp and subscriptions to economic publications.
In summary, the U.S. has delayed the approval of a significant climate finance package for South Africa, which has the potential to secure additional funding from international sources. This decision aligns with previous actions taken by the Trump administration to minimize participation in global climate initiatives. The situation remains fluid, with a possibility of review at upcoming CIF meetings.
Original Source: m.economictimes.com
