The United States withdraws from South Africa’s Just Energy Transition Partnership

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  • Reuters reports that the USA has communicated its withdrawal from South Africa’s Just Energy Transition Programme (JETP).
  • The US has also pulled JETP funding in Indonesia and Vietnam. 

At COP 26 in November 2021, the governments of South Africa, France, Germany, the United Kingdom, and the United States of America, along with the European Union, issued a Political Declaration announcing a new ambitious, long-term Just Energy Transition Partnership (JETP) with a combined pledge of US$ 8,5 billion in funding. The International Partners Group (IPG) as it is called, aims to accelerate the decarbonisation of South Africa’s economy to help it achieve the ambitious goals set out in South Africa’s updated Nationally Determined Contribution emissions goals.

Other nations like Denmark and The Netherlands joined the programme taking the full funding pledged to US $11.6 billion.

The programme has struggled to realise full scale implementation 

In late 2023, the South Africa’s Cabinet approved the Just Energy Transition Implementation Plan,  but there has been a push back from political leaders. The Secretary General of the ruling ANC party in South Africa, Fikile Mbalula, has slammed the JETP offer saying that the pact is responsible for the country’s blackouts. South Africa’s energy minister at the time, Gwede Mantashe, snubbed US1 billion green energy MOU announcement with Denmark and The Netherlands. Read more

South Africa has delayed the planned shutdown of its 14 coal-fired plants to address the energy challenges the country faces. They have yet to set new closure dates.

The IPG’s initial $8.5 billion funding package includes:

  • $2.6 billion through the Climate Investment Funds Accelerating Coal Transition Investment Plan (CIF ACT)
  • $1 billion from France
  • $1 billion from Germany
  • $1.8 billion from the UK
  • $1 billion from the US (now cancelled)
  • $1 billion from the EU

USA pulls Power Africa Programme

Last week the Trump administration listed almost all of Power Africa’s programs for termination and most of its staff fired. Some remaining programs, particularly those aimed at connecting projects with US companies, may be retained under other US agencies, they said. The USAID Power Africa website has been taken down.

“Each program is undergoing a review with the goal of restructuring assistance to serve US interests,” a State Department spokesperson said. “Programs that serve our nation’s interests will continue. However, programs that aren’t aligned with our national interest will not.”

Author: Bryan Groenendaal

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7 Comments

  1. But the Global push towards clean Energy is aligning with united Nations Sustainable development Goal number7 (Affordable and cleaner energy practices or environmentally friendly practices). The decarbonisation of South African economy will sluggish due to USA withdrawal.

    • It is now clear that ‘decarbonisation’ is an unnecessary and costly process. SA is rich in coal and gas and should use it to drive its economic growth.

    • Charles Butcher on

      The best news yet,usa must get out of South Africa and so must the rest,it’s just a way too keep “hooks” into the country and they know the money is being STOLEN by the thieving cANCer governmunt of South Africa, we are BRICS

      • Farida Lukie on

        Loyal South Africanswill/ must put all knowledge oft this matter together.We will have be in a position to think of alternative measures.Hopefully we have suitably knowledgeable individual who can assist.No one must this sit on periphery or criticize Say something .Internationals have been underestimate us long enough .Stealing our resources.

  2. W hitney Smith on

    Trump is a climate denier. Expect more disastrous climate and environmental related decisions from him.

  3. Comfort Nziyane on

    US’s decision to withdraw the proposed funding will be detrimental to RSA’s energy transition plans, exacerbated by Trump’s continuous Executive Orders execution.
    It is improbable to justify the decision by the USA current president Trump. It cannot be the only country withdrawing in the already signed deal.
    It pains our hearts to witness decision taken by the US president severely affecting RSA.

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