Key Takeaways:

• The United States has officially withdrawn from the Just Energy Transition Partnership (JETP), a multi-billion-dollar initiative aimed at assisting developing countries with their energy transitions.
• Countries like South Africa and Indonesia, which were set to benefit significantly from the program, will face funding challenges as a result of this exit.
• Other nations involved in JETP, such as France, Germany, and the European Union, remain committed to supporting climate initiatives.
• US officials cited executive orders from President Donald Trump as the rationale for the withdrawal.

The United States is withdrawing from the Just Energy Transition Partnership (JETP), an initiative aimed at helping developing nations transition from coal to cleaner energy sources, according to multiple sources. Announced during the U.N. climate talks in Glasgow in 2021, this program involved ten donor nations collaborating to provide financial and technical assistance to countries like South Africa, Indonesia, and Vietnam.

Joanne Yawitch, head of the Just Energy Transition Project Management Unit in South Africa, confirmed that the United States communicated its decision to withdraw on February 28, 2025. Both South Africa and Indonesia have acknowledged that this exit will negatively impact their planned projects. According to a statement from the South African presidency, the US commitment of $56 million in grants and an additional $1 billion in commercial investments has now been rescinded, leading to the cancellation of several grant projects already in development.

Paul Butarbutar, the head of Indonesia's JETP Secretariat, stated that the US embassy in Jakarta officially notified them of the withdrawal, which he attributed to executive orders initiated by President Trump. Although the $21.6 billion pledged from private and public donors remains intact, the US exit is expected to affect transition studies and grant funding in Indonesia.

In light of this withdrawal, UK climate envoy Rachel Kyte expressed her disappointment but reassured South Africa that "the rest of the world moves on." South Africa, which generates approximately 80% of its electricity from coal, is one of the largest polluters globally, making the need for a transition even more pressing.

In response, South Africa’s Energy Minister Kgosientsho Ramokgopa confirmed that their commitment to a just energy transition remains steadfast, stating, "Our commitment to a just energy transition is not conditional on other sovereign powers." Despite the challenges posed by frequent power outages and political opposition to shutting down coal plants, they will continue to seek funding and partnerships for their clean energy goals.

As the world moves forward in combating climate change, the implications of this US withdrawal could resonate beyond immediate national projects, potentially influencing similar initiatives aimed at global clean energy transition efforts. For further details, visit The Jakarta Post.