The US is stalling the distribution of $2.6 billion in climate finance to South Africa, stoking concerns the money might be blocked outright, people familiar with the situation said.
The US is stalling the distribution of a $2.6 billion climate finance package to South Africa, preventing a $500 million disbursement via the World Bank-linked Climate Investment Funds, which would unlock an additional $2.1 billion. This is due to actions by US representatives and pre-existing tensions between the US and South Africa, including halted aid and accusations of land expropriation. This action is part of a larger US pullback from global climate initiatives, including withdrawing from the Paris Agreement and cancelling pledges to other climate funds. This has already cost South Africa $1 billion in loans.
