United States Delays $2.6 Billion Climate Finance Package for South Africa
The U.S. is delaying a $2.6 billion climate finance package for South Africa, raising concerns about potential blockage. Recent actions halted a $500 million approval needed to access $2.1 billion more from multilateral sources. Tensions between the U.S. and South Africa may deepen, especially with the backdrop of the Trump administration’s previous cuts to climate aid.
The United States has delayed the distribution of a $2.6 billion climate finance package intended for South Africa, raising concerns about a potential outright block of the funds. Recently, actions by U.S. representatives prevented the Climate Investment Funds (CIF) from approving a $500 million disbursement that would have facilitated an additional $2.1 billion from other multilateral development banks and financing sources. Further attempts to approve this payment could take place during CIF meetings scheduled for June.
This disruption is likely to exacerbate tensions between the U.S. and South Africa, particularly following the Trump administration’s previous actions, which included halting aid and labeling the South African ambassador as a “persona non grata.” Despite accusations of land expropriation, South African authorities have not confiscated any private land since apartheid ended in 1994. Moreover, U.S. withdrawal from international climate protocols further complicates relations, as demonstrated by Trump’s commitment to exit the Paris Agreement immediately after taking office.
The U.S. also withdrew a $4 billion pledge to the Green Climate Fund and halted support intended for countries such as Indonesia, Vietnam, and South Africa aimed at reducing their coal dependency, resulting in $1 billion in lost loans for South Africa. Any of the fifteen contributing nations to the CIF can block fund disbursements if they raise objections or request more time for additional information. The specific objections raised by the United States in this instance remain unclear, as a U.S. Treasury spokesperson refrained from commenting on the situation.
The Climate Investment Funds, which manage a total of $12.5 billion, primarily rely on contributions from countries such as the United States, which has played a significant role, providing $3.84 billion. The UK, Germany, Japan, and Canada also contribute substantial amounts, with the UK providing $3.63 billion and the others contributing over $1 billion each. These funds are distributed through several multilateral development banks, including the World Bank and the African Development Bank.
In summary, the U.S. has stalled a significant climate finance package for South Africa, triggering concerns about the complete blockage of the funds. This development could intensify existing diplomatic strains, particularly highlighting the context of U.S. withdrawal from climate agreements and support programs. Given the CIF’s reliance on agreement among donor nations, the specific rationale behind U.S. obstruction remains ambiguous, emphasizing the complexities of international climate finance negotiations.
Original Source: www.thestar.com.my
