SA Responds to US Withdrawal from Just Energy Transition Partnership

Despite this setback, South Africa remains steadfast in its commitment to international climate agreements, including the objectives set forth in the Paris Agreement.

South Africa has acknowledged the United States’ decision to revoke the US International Climate Finance Plan, leading to its withdrawal from the Just Energy Transition (JET) partnership. This move comes after US President Donald Trump signed Executive Order 14162, effectively rescinding the plan and signaling the United States’ departure from the Paris Agreement, which aims to curb global greenhouse gas emissions.

The Department of International Relations and Cooperation (DIRCO) confirmed that President Trump’s executive action has significantly impacted South Africa’s Just Energy Transition Investment Plan (JETP). Effective immediately, the United States has terminated its membership in the International Partners Group (IPG) for JETPs in South Africa, Indonesia, and Vietnam. The withdrawal also means the revocation of associated financial pledges and the cancellation of previously funded grant projects, whether in planning or implementation phases.

Despite this setback, South Africa remains steadfast in its commitment to international climate agreements, including the objectives set forth in the Paris Agreement. DIRCO emphasized that South Africa and other international partners will assess the broader implications of the US withdrawal and explore alternative measures to sustain the energy transition goals.

In a parliamentary discussion on the matter, DIRCO Minister Ronald Lamola encouraged South Africa to view this change as an opportunity rather than a loss. Instead of lamenting the reduction in US funding from the United States Agency for International Development (USAID), he urged the nation to reevaluate and transform its approach to global partnerships and domestic sustainability.

“We must act in unison to mitigate the negative impact of the USAID cuts. We must seize this moment to reconceptualize our global system and ensure that our domestic imperatives serve our nation efficiently and sustainably,” Lamola told Members of Parliament (MPs).

Despite the diplomatic shift, the United States remains a crucial trade partner for South Africa, ranking second after China. Currently, 601 American companies operate in South Africa, supporting 143,000 jobs. In 2023, bilateral trade between the two nations reached $22 billion, with the US serving as a key market for South African agricultural exports.

South Africa’s exports to the United States include platinum, motor vehicles, reaction initiators, ferroalloys, citrus fruits, jewelry, nuts, chemicals, wines, engines, turbines, and ships. Additionally, 22 South African companies have invested in the United States, collectively providing approximately 6,900 jobs.

As South Africa navigates the evolving geopolitical landscape, its leaders are expected to explore new avenues for energy transition funding and strategic partnerships to uphold the nation’s climate commitments.