US Withdraws from Just Energy Transition Partnership
After reneging on the #ParisAgreement, US President Trump issued another Executive Order to remove the US from the Just Energy Transition Partnership (#JETP) which aims to motivate developing nations to shift to clean and renewable energies.
It is to be recalled that the JETP was launched at #COP26 in Glasgow back in 2021 with the US, UK, EU and several developing countries. Several billions of dollars were pledged to accompany developing countries in their Just Energy Transition (#JET) journey. The most affected countries include South Africa and Indonesia which have huge reserves of coal and have coal as a major source of power in their energy mix.
Actually, South Africa was the first country to sign a JET deal with the International Partners Group (IPG) to incentivize its move away from coal. In 2022, Indonesia signed a similar USD 20 billion JET deal, followed by Vietnam with USD 15 billion. Then, Senegal entered into a similar agreement worth USD 2.7 billion in 2023, but the USA did not get involved.
UK and Germany called ‘regrettable’ the US untimely exit from such a landmark agreement, but remain convinced that JETP can move on without the US.
“Big polluters like the United States are financially obligated to support climate-vulnerable nations. The US is setting a dangerous precedent and is sending a negative signal as the world’s 2nd largest emitter of greenhouse gases (#GHG) is skirting its climate obligations.”
Environmental Group 350.org Director Norly Mercado
The pledge from the US to #South Africa under the JETP amounted to USD 56 million in grants and another USD one billion in green investments. In comparison to the total USD 8.5 billion, the US contribution is neither too big nor too small. South Africa will certainly miss the US, but will be probably be able to survive the breakup.
South Africa generates nearly 80% of its electricity from coal, so the JETP was crucial to sever it from the highly polluting fuel. Nevertheless, South Africa has already initiated policy changes to promote cleaner and renewable energies. It also declared that is pathway toward #NetZero is not dependent on other country.
In the case of #Indonesia, the total JETP pledge totaled USD 21.6 billion. The contribution of the US was mostly in the form of grants of transition studies and amounted to several millions of dollars.
In the face of the retreat of the US, other partner countries such as France, Germany, UK, Denmark and the Netherlands reiterated their commitment to #JETP. “The world will just have to move on without the US,” declared UK Climate Envoy Rachel Kyte.