The United States is delaying the release of $2.6 billion in climate finance to South Africa, raising concerns that the funds may not be disbursed at all, Bloomberg News reported on Thursday, citing sources familiar with the matter.
According to the report, U.S. representatives blocked a $500 million disbursement from the World Bank-linked Climate Investment Funds (CIF) earlier this month. This funding was expected 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.
CIF is one of the world’s largest multilateral funds dedicated to scaling climate solutions in developing nations.
If confirmed, the delay would align with other steps taken by former President Donald Trump’s administration to reduce involvement in global climate initiatives. In March, the U.S. withdrew from the board of the United Nations’ climate damage fund, which provides support to countries facing climate-related disasters.
The U.S. Treasury and CIF have not yet responded to Reuters’ requests for comment.
