U.S. Delays $2.6 Billion in Climate Finance to South Africa

The United States is delaying the disbursement of $2.6 billion in climate finance to South Africa, raising concerns that the funds could be withheld entirely, Bloomberg News reported Thursday, citing sources familiar with the matter.

Earlier this month, U.S. representatives blocked the Climate Investment Funds (CIF), a World Bank-linked initiative, from approving a $500 million disbursement to South Africa, the report said. The funding was expected to unlock an additional $2.1 billion from multilateral development banks and other financial sources. A fresh attempt to approve the disbursement may be made at CIF meetings in June. CIF is one of the world’s largest multilateral funds focused on scaling climate solutions in developing countries.

If confirmed, the move would align with broader efforts by former President Donald Trump’s administration to reduce U.S. participation in international climate initiatives. In March, the U.S. also withdrew from the board of the United Nations’ climate damage fund, which supports nations vulnerable to climate-related disasters.

Reuters/Patience Ameh