The U.S. has delayed a $2.6 billion climate finance package intended for South Africa, raising concerns about the complete withdrawal of funds. Recent actions include blocking a $500 million disbursement via the Climate Investment Funds. This move could echo previous reductions in U.S. participation in multilateral climate initiatives initiated by the previous administration.
The United States has postponed the release of a $2.6 billion climate finance package intended for South Africa, which raises concerns about the potential total withdrawal of these funds, according to a report by Bloomberg News from Thursday. This delay follows a recent action where U.S. representatives intervened to halt the approval of a $500 million disbursement by the Climate Investment Funds (CIF), which is associated with the World Bank.
This funding was anticipated to enable the unlocking of an additional $2.1 billion from multilateral development banks and various financial sources. A new request for approving this disbursement is expected to be presented in June during CIF meetings, as CIF remains a significant multilateral fund focused on enhancing climate solutions in developing nations.
If this situation is verified, it would represent a continuation of actions initiated during former President Donald Trump’s administration, which sought to limit U.S. participation in global climate efforts. For instance, in March, the U.S. exited its role on the board of the United Nations’ climate damage fund, designated to assist vulnerable countries affected by climate-related incidents.
As of now, both the U.S. Treasury and the Climate Investment Funds have not provided a response to inquiries from Reuters regarding this matter.
In summary, the United States has delayed the $2.6 billion climate finance package to South Africa, causing concerns over potential withholding of these essential funds. The U.S. has previously taken steps to limit its involvement in international climate initiatives, further complicating global climate action efforts.
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