US delays $2.6bn climate finance package to SA, reports Bloomberg
This raises concern that the funds could be withheld entirely
20 March 2025 - 15:52
bySurbhi Misra
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The US is delaying the disbursement of $2.6bn in climate finance to SA, raising concern that the funds could be withheld entirely, Bloomberg News reported on Thursday, citing people familiar with the situation.
Earlier this month, US representatives prevented the World Bank-linked Climate Investment Funds (CIF) from approving a $500m disbursement to SA, the report added.
The funding was expected to unlock an additional $2.1bn from multilateral development banks and other financial sources and a fresh attempt to approve the disbursement may be made at CIF meetings in June, the report said.
CIF is one of the world’s largest multilateral funds aimed at scaling climate solutions in developing countries.
If confirmed, the move would be among several actions by former President Donald Trump’s administration to scale back participation in multilateral climate initiatives.
In March, the US withdrew from the board of the UN’s climate damage fund, which supports vulnerable nations facing climate-related disasters.
The US treasury and the CIF did not immediately respond to Reuters' requests for comment.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
US delays $2.6bn climate finance package to SA, reports Bloomberg
This raises concern that the funds could be withheld entirely
The US is delaying the disbursement of $2.6bn in climate finance to SA, raising concern that the funds could be withheld entirely, Bloomberg News reported on Thursday, citing people familiar with the situation.
Earlier this month, US representatives prevented the World Bank-linked Climate Investment Funds (CIF) from approving a $500m disbursement to SA, the report added.
The funding was expected to unlock an additional $2.1bn from multilateral development banks and other financial sources and a fresh attempt to approve the disbursement may be made at CIF meetings in June, the report said.
CIF is one of the world’s largest multilateral funds aimed at scaling climate solutions in developing countries.
If confirmed, the move would be among several actions by former President Donald Trump’s administration to scale back participation in multilateral climate initiatives.
In March, the US withdrew from the board of the UN’s climate damage fund, which supports vulnerable nations facing climate-related disasters.
The US treasury and the CIF did not immediately respond to Reuters' requests for comment.
Reuters
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