The United States has withdrawn from the Just Energy Transition Partnerships (JETP), a $9.3 billion initiative aimed at helping developing nations like South Africa and Indonesia transition to clean energy. The JETP, launched in 2021, was designed to assist these countries in moving away from coal and other non-renewable energy sources. The US exit will have a significant impact on the program’s beneficiaries.
South African President Cyril Ramaphosa’s office stated that grant projects previously funded and in the planning or implementation phases have been canceled. Paul Butarbutar, head of Indonesia’s JETP Secretariat, confirmed that the US embassy in Jakarta informed him of Washington’s decision, citing an executive order. Under the JETP agreement, South Africa was set to receive $52.37 million in grants and an additional $1 billion in potential commercial investments.
Similar agreements were made with Indonesia and Vietnam.
US withdrawal affects $9.3B JETP initiative
The US withdrawal will affect transition studies and grant funding in these countries.
The JETP initiative has faced challenges in delivering its intended objectives. UK climate envoy Rachel Kyte called the US withdrawal “regrettable” but reassured South Africa that “the rest of the world moves on.”
South Africa, one of the world’s largest polluters, relies on coal for 80% of its electricity. Energy Minister Kgosientsho Ramokgopa stated, “Our commitment to a just energy transition is not conditional on other sovereign powers.” However, frequent power outages in the country have fueled political opposition to closing coal plants.
The JETP was hailed as a breakthrough in 2021, aiming to bring public and private funding together to support clean energy transitions in developing nations. However, progress has been slow due to financing challenges, leadership changes in Indonesia and Vietnam, and the complexities of shutting down power plants. Other partners, including France, Germany, the European Union, the UK, the Netherlands, and Denmark, remain committed to the program.
The future impact of the JETP is uncertain following the US withdrawal.
Image Credits: Photo by Thomas Reaubourg on Unsplash
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
