The U.S. has delayed a key climate finance package of $2.6 billion to South Africa, including a $500 million grant from CIF, which may unlock an additional $2.1 billion. This decision reflects a trend of diminishing U.S. involvement in multilateral climate initiatives.
The U.S. has delayed a $2.6 billion climate finance package intended for South Africa, according to Bloomberg News. This package includes a critical $500 million disbursement from the Climate Investment Funds (CIF), which is designed to enable substantial additional investments of $2.1 billion from multilateral development banks and other financial entities. The CIF plans to re-evaluate the disbursement in meetings scheduled for June.
The CIF is recognized as one of the most significant multilateral funds focused on promoting climate solutions in developing nations. The postponement aligns with former President Donald Trump’s administration’s broader trend of diminishing U.S. engagement in multilateral climate initiatives. Notably, earlier this year, the U.S. exited the board of the United Nations’ climate damage fund dedicated to aiding nations affected by climate change.
The U.S. Treasury and the CIF did not provide immediate responses to inquiries from Reuters regarding this decision. This setback raises concerns about the future of U.S. support for global climate efforts amid shifting political priorities.
The U.S. has postponed a significant climate finance package for South Africa, potentially affecting future investments and commitments to global climate initiatives. The delay stems from previous administrative trends that have seen a reduction in U.S. participation in multilateral climate agreements. Attention will now turn to the upcoming CIF meetings in June for possible resolutions.
Original Source: m.economictimes.com
