U.S. Delays $2.6 Billion Climate Finance Package for South Africa

The U.S. has delayed a $2.6 billion climate finance package for South Africa, including a key $500 million disbursement from the Climate Investment Funds, which was expected to attract an additional $2.1 billion from other sources. This move aligns with previous actions by the Trump administration to decrease participation in international climate efforts.

The United States has reportedly postponed a $2.6 billion climate finance package destined for South Africa, as indicated by Bloomberg News. A significant component of this package involves a $500 million disbursement from the Climate Investment Funds (CIF), which was anticipated to facilitate an additional $2.1 billion from multilateral development banks and other financial institutions. Future discussions to potentially approve this funding will occur during CIF meetings scheduled for June.

CIF is recognized as one of the vastest multilateral funds dedicated to enhancing climate solutions in developing nations. Should this delay be substantiated, it would reflect a continuation of former President Donald Trump’s administration’s pattern of reducing U.S. involvement in international climate frameworks. In a related development in March, the U.S. withdrew from the board of the United Nations’ climate damage fund, which is instrumental in supporting nations vulnerable to climate-related disasters.

Currently, both the U.S. Treasury and the CIF have not provided comments in response to requests from Reuters regarding this matter. In related news, readers can subscribe to the Economic Times for updates on business and financial news through WhatsApp, or opt for the ET ePaper for digital reading.

In summary, the United States has delayed a significant climate finance package aimed at South Africa, which underscores a shift in its participation in global climate initiatives. This decision not only impacts the disbursement from the CIF but may also hinder additional funding from other sources. The delay reflects broader trends in U.S. climate policy since the previous administration.

Original Source: m.economictimes.com