U.S. Delays $2.6 Billion Climate Fund to South Africa

The United States is postponing $2.6 billion in climate finance for South Africa, leading to speculation it could be withheld completely. This delay affects a broader $2.1 billion funding plan from multilateral development banks. Earlier U.S. actions under Trump also reduced involvement in climate initiatives.

The United States has postponed the disbursement of $2.6 billion in climate finance to South Africa, triggering fears that the funds might be completely withheld, according to Bloomberg News sources.

This follows a recent blocking by U.S. representatives of a $500 million disbursement by the World Bank-linked Climate Investment Funds (CIF), which was intended to unlock additional financing of $2.1 billion from multilateral development banks. An attempt to approve this funding may occur at CIF meetings in June.

CIF, one of the leading global multilateral funds, supports climate solutions in developing nations. Meanwhile, the U.S. also withdrew from the UN climate damage fund board in March, a move reminiscent of Trump's administration's retreat from multilateral climate efforts.

(With inputs from agencies.)