The United States is postponing a US$2.6 billion climate finance package for South Africa, which may lead to the funds being entirely blocked. The Trump administration’s actions against South Africa have heightened tensions, contributing to a wider US withdrawal from global climate commitments. The CIF’s approval process is subject to objections from contributing nations, complicating the disbursement of these critical funds.
The United States is delaying the disbursement of a US$2.6 billion climate finance package to South Africa, raising concerns that the funds may be permanently blocked. According to sources, US representatives recently impeded the World Bank-affiliated Climate Investment Funds (CIF) from approving a US$500 million allocation to South Africa. This release of funds would have subsequently unlocked an additional US$2.1 billion from multilateral development banks and other financing sources.
Another opportunity for approval may occur during CIF meetings scheduled for June, with potential implications for US-South Africa relations. The Trump administration has halted aid to South Africa, designated the South African ambassador to the United States as a “persona non grata,” and accused the nation of land expropriation, despite South African authorities not confiscating any private land since apartheid ended in 1994.
This conflict is exacerbated by the broader US withdrawal from global climate commitments. Following his inauguration, President Trump pledged to withdraw from the Paris Agreement and cancelled a US$4 billion commitment to the Green Climate Fund, additionally retracting support for initiatives aimed at reducing coal dependence in nations such as Indonesia, Vietnam, and South Africa, resulting in a US$1 billion loss in loans for South Africa.
Disbursements from the CIF can be stymied if any of the 15 contributing nations object or require more time for clarification regarding the allocations’ usage and conditions. The United States’ specific method of hindering this approval process remains unclear, while a US Treasury spokesperson declined to comment on the matter. The CIF stated that policy discussions are confidential and that related documents are published post-approval. As of late 2024, the US was the largest contributor to the CIF, having provided US$3.84 billion, with the United Kingdom and other nations also contributing significantly.
In summary, the United States is stalling a significant climate finance package intended for South Africa, generating concerns of a complete blockage. The delay is compounded by ongoing tensions between the two nations, influenced by the US’s broader retreat from international climate initiatives. As the CIF’s approval process unfolds, the implications of these actions may further strain US-South Africa relations.
Original Source: www.thestar.com.my
