The U.S. has delayed a $2.6 billion climate finance package for South Africa, which includes a $500 million CIF disbursement expected to trigger an additional $2.1 billion in funding. This decision reflects a continuing trend from the previous administration to withdraw from multilateral climate agreements. Future discussions regarding this funding may occur at CIF meetings in June.
The United States has postponed a $2.6 billion climate finance initiative intended for South Africa, as reported by Bloomberg News. This initiative includes a $500 million allocation from the Climate Investment Funds (CIF), which aims to catalyze an additional $2.1 billion from multilateral development banks and other financial institutions. A renewed proposal for the disbursement may be presented at CIF meetings scheduled for June.
CIF stands as one of the most significant multilateral funds dedicated to advancing climate solutions in developing nations. Should this postponement be officially confirmed, it would reflect a broader trend initiated by former President Donald Trump’s administration, which sought to reduce American involvement in multilateral climate activities.
In March of this year, the United States withdrew from the board of the United Nations’ climate damage fund, a program designed to aid vulnerable countries impacted by climate change. As of now, the U.S. Treasury and CIF have not responded to inquiries from Reuters seeking comments regarding this development.
In summary, the delay of the $2.6 billion climate finance package to South Africa signals a potential shift in U.S. engagement with multilateral climate initiatives. As the CIF prepares for meetings in June, the implications of this postponement may resonate throughout international climate financing efforts, particularly amidst the U.S.’s recent trend of reassessing its commitments to global climate agreements.
Original Source: m.economictimes.com
