The US has announced its withdrawal from the Just Energy Transition Partnership (JETP), an initiative to support developing countries to transition from coal to clean energy. With the Donald Trump administration’s decision to halt international climate funding, countries such as South Africa, Indonesia and Vietnam will have to continue their projects without US support.
The JETP initiative was launched at the COP26 Climate Summit in 2021 with the support of countries such as the European Union, Germany, the UK, France and the United States. The program aimed to accelerate the transition from fossil fuels to clean energy in developing countries. However, with the withdrawal of the US, a significant portion of the 45 billion dollars of funding committed to the project was lost.
Germany and the UK called the US decision “regrettable”, while other donor countries and financial institutions said they would continue to support JETP projects. German State Secretary for Development Jochen Flasbarth stressed that mobilizing private investment is critical.
The environmental organization 350.org described the US withdrawal as a “dangerous precedent” and stated that major polluters must fulfill their responsibilities towards the climate crisis. The South African government announced that they will seek alternative sources of financing and continue the transition to clean energy.
The US decision calls into question its commitment to global climate finance and could complicate the transition of developing countries to renewable energy.