The United States has put a hold on $2.6 billion in climate finance earmarked for South Africa, raising fears that the funds could be withheld altogether, Bloomberg News reported Thursday, citing sources familiar with the matter.
According to the report, U.S. officials recently blocked the Climate Investment Funds (CIF), a World Bank-linked initiative, from approving an initial $500 million disbursement to South Africa. The financing was expected to unlock an additional $2.1 billion from multilateral development banks and other funding sources. A renewed effort to approve the package may take place at CIF meetings in June, the report added.
CIF is one of the world’s largest multilateral funding mechanisms for climate solutions in developing nations.
If confirmed, the delay would align with broader U.S. policy shifts, echoing past decisions under former President Donald Trump to scale back involvement in global climate initiatives. Earlier this month, Washington withdrew from the board of the UN’s climate damage fund, which supports nations facing climate-related crises.
The U.S. Treasury and CIF have not yet responded to Reuters’ requests for comment.