US Delays $2.6B Climate Funds For South Africa

The United States has put a hold on the disbursement of $2.6 billion in climate finance to South Africa, raising concerns that the funding may be withheld entirely, according to a report by Bloomberg News.

Earlier this month, U.S. representatives blocked the World Bank-linked Climate Investment Funds (CIF) from approving an initial $500 million disbursement to South Africa. This funding was intended to unlock an additional $2.1 billion from multilateral development banks and other financial sources.

A new attempt to approve the disbursement may be made during CIF meetings in June. The CIF is one of the world’s largest multilateral funds dedicated to scaling up climate solutions in developing countries.

If confirmed, this delay would align with previous actions by the Trump administration to scale back participation in global climate initiatives. In March, the U.S. withdrew from the board of the United Nations’ climate damage fund, which provides support to nations affected by climate-related disasters.