The United States is delaying a US$2.6 billion climate finance package for South Africa, raising fears of permanent blockage. US actions blocked a US$500 million disbursement needed for further funding. This delay may worsen existing tensions, with previous aid halts and accusations from the Trump administration. The situation reflects a broader US retreat from global climate initiatives, impacting international partnerships and assistance.
The United States is currently delaying the allocation of a substantial US$2.6 billion climate finance package intended for South Africa, raising concerns over the possibility of permanent blockage. Sources indicate that actions taken by US representatives have thwarted the Climate Investment Funds (CIF) from approving a crucial US$500 million disbursement, which was essential for unlocking an additional US$2.1 billion from various multilateral development banks and financing sources.
There may be another attempt to secure this funding during the CIF meetings scheduled for June, yet the implications of this delay threaten to exacerbate tensions between the two nations. The Trump administration has already ceased aid to South Africa, recognized its ambassador as “persona non grata,” and accused the country of land expropriation, despite South Africa not having confiscated private land since apartheid ended in 1994.
Moreover, this situation arises concurrently with a broader retreat by the US from international climate initiatives. Shortly after taking office, President Trump committed to withdrawing the United States from the Paris Agreement and canceled a previous US$4 billion commitment to the Green Climate Fund, alongside halting support for efforts aimed at reducing coal dependency in emerging economies such as Indonesia, Vietnam, and South Africa, which resulted in a loss of US$1 billion in loans for South Africa.
Disbursement of CIF funds can be obstructed if any of the 15 contributing nations express objections or require further information regarding the intended use and conditions of these funds. The specific actions taken by the United States to impede this approval process remain ambiguous, as a representative from the US Treasury declined to provide comments. The CIF has stated it cannot disclose member deliberations before they are officially approved.
As of late 2024, the United States remains the largest contributor to the CIF, having contributed approximately US$3.84 billion, followed closely by the United Kingdom at US$3.63 billion. Other significant contributors include Germany, Japan, and Canada, each providing over US$1 billion. The CIF manages its funding through various multilateral development banks, including the World Bank and the African Development Bank.
In summary, the delay in approving the US$2.6 billion climate finance package for South Africa illustrates rising tensions between the two countries. The Trump administration’s previous actions have strained relations and led to significant financial consequences for South Africa. The upcoming CIF meetings in June will be critical in determining whether the funding can eventually be secured. This situation highlights a broader trend of US withdrawal from global climate commitments, impacting international cooperation on climate change initiatives.
Original Source: www.thestar.com.my
