U.S. Exits Just Energy Transition Partnership

The United States is withdrawing from the Just Energy Transition Partnership, affecting its commitments in South Africa, Indonesia, and Vietnam. Initiated in 2021 to aid nations transitioning from coal, the partnership faces challenges as the U.S. slashes foreign aid under President Trump's administration, yet other partner nations remain committed.

The United States has announced its withdrawal from the Just Energy Transition Partnership (JETP), initially launched to support developing countries in transitioning from coal to greener energy sources. This decision comes as a significant development in global efforts towards sustainable energy, especially affecting nations like South Africa, Indonesia, and Vietnam, who were set to benefit from financial aid and loans.

According to multiple sources, JETP, unveiled during the U.N. climate talks in Glasgow in 2021, included financial commitments from 10 donor countries. However, recent moves by the Trump administration to cut foreign aid and prioritize fossil fuel development have resulted in the U.S. exiting the partnership, raising concerns about the future of these energy projects.

Despite the U.S. withdrawal, significant finance remains available from other international partners committed to delivering on the energy transition goals. Washington's commitments for Indonesia and Vietnam were previously estimated to exceed $3 billion, with South Africa allocated $1.063 billion. As this development unfolds, the other donor nations in the partnership remain steadfast in their support to help these countries transition away from coal reliance.

(With inputs from agencies.)