The U.S. has delayed a $2.6 billion climate finance package for South Africa, raising fears of a total withdrawal of funds. The delay includes blocking a $500 million disbursement from the Climate Investment Funds, a move linked to previous American policy actions reducing multilateral climate engagement.
The United States has postponed the distribution of a $2.6 billion climate finance package earmarked for South Africa, as reported by Bloomberg News. This delay has sparked concerns regarding the possibility of the funds being withheld altogether, according to sources familiar with the matter. Recently, U.S. representatives intervened to block a $500 million disbursement from the Climate Investment Funds (CIF), which is affiliated with the World Bank.
This climate finance was projected to leverage an additional $2.1 billion from various multilateral development banks and other financial entities. It is anticipated that there may be further attempts to secure approval for this disbursement during CIF meetings scheduled for June. CIF is recognized as one of the largest multilateral funds focused on enhancing climate solutions in developing nations.
Should this delay be confirmed, it would align with several actions taken during former President Donald Trump’s administration that reduced U.S. involvement in global climate initiatives. Notably, in March, the U.S. withdrew from the board of the United Nations’ climate damage fund, which provides assistance to nations impacted by climate-related disasters. Requests for comments from the U.S. Treasury and the CIF were not immediately answered by Reuters.
In summary, the U.S. government’s deferment of a significant climate finance package to South Africa raises critical uncertainties regarding international climate funding. This decision echoes previous actions by the former Trump administration aimed at diminishing the United States’ role in global climate initiatives, potentially hindering progress toward climate solutions in vulnerable nations.
Original Source: www.tradingview.com
