The United States has postponed the disbursement of $2.6 billion in climate finance intended for South Africa, sparking concerns about the future of these funds. The funding, composed of $500 million from the Climate Investment Funds (CIF) and an additional $2.1 billion from multilateral development banks, was expected to support South Africa’s climate initiatives.
The delay was reportedly prompted by U.S. representatives blocking a $500 million allocation from CIF earlier this month. This delay raises questions about the potential impact on South Africa’s efforts to tackle climate challenges, as the funding plays a crucial role in supporting climate solutions in developing nations.
Complications surrounding the release of these funds mirror previous actions under former President Donald Trump’s administration, which saw a reduction in U.S. participation in global climate initiatives. This includes the egress from the United Nations’ climate damage fund in March, which aids countries dealing with climate-related disasters.
The U.S. Treasury and CIF have yet to issue statements regarding the situation. Efforts to approve the fund disbursement may be renewed during upcoming CIF meetings in June.
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