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The United States is delaying the release of $2.6 billion in climate financing to South Africa, sparking concerns the funds could be withheld entirely, Bloomberg News reported. The decision reportedly blocked a $500 million disbursement from the World Bank-linked Climate Investment Funds (CIF), which was expected to unlock an additional $2.1 billion from other financial sources.
A new attempt to approve the funding may be made at CIF meetings in June. However, the U.S. Treasury has declined to comment, and CIF has not responded to media inquiries.
CIF, one of the world’s largest multilateral climate funds, plays a critical role in supporting climate initiatives in developing countries. If confirmed, the U.S. move would align with previous actions by President Donald Trump’s administration, which has scaled back participation in global climate initiatives.
In March, the U.S. withdrew from the board of the United Nations’ climate damage fund, which provides financial aid to vulnerable nations facing climate disasters.
The delay in South Africa’s climate funding raises uncertainty over its energy transition efforts and underscores ongoing geopolitical shifts in global climate financing.
