US delays $2.6bn climate finance package to South Africa, Bloomberg News reports
The United States is delaying the disbursement of $2.6bn in climate finance to South Africa, raising concerns the funds could be withheld entirely, Bloomberg News reported on Thursday, citing people familiar with the situation.
Image source: Tanarat Kongchuenjit – 123RF.com
Earlier this month, US representatives prevented the World Bank-linked Climate Investment Funds (CIF) from approving a $500m disbursement to South Africa, 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 United Nations' 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.
Source: Reuters
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Reporting by Surbhi Misra in Bengaluru, editing by Louise Heavens and Tomasz JanowskiRelated
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