US withdraws from Just Energy Transition partnership with South Africa
The move is among a long list of orders signed by Trump when he returned to the oval office for a second term, rocking the international arena.
US President Donald Trump takes questions during a joint press conference with unseen Indian Prime Minister Narendra Modi in the East Room of the White House in Washington, DC, on 13 February 2025. Picture: Jim WATSON/AFP
JOHANNESBURG - In another blow to ties between Washington and Pretoria, the United States (US) has withdrawn from the Just Energy Transition partnership with South Africa.
This after US President Donald Trump signed an executive order terminating its membership of the international partners group, which saw the launch of the Just Energy Transition partnership at the COP26 climate summit in 2021.
The move is among a long list of orders signed by Trump when he returned to the Oval Office for a second term, rocking the international arena.
The US’s 2021 pledges to South Africa’s Just Energy Transition Investment Plan (JET IP), included $56 million in grant funds and $1 billion in potential commercial investments by the US international development finance corporation.
No concessional loans were offered by the USA to South Africa for the investment plan.
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The withdrawal of the US reduces the current overall international JET pledges to South Africa from $13,8bn to $12,8bn.
South Africa’s just energy transition project management unit, housed under the Presidency, said it was actively engaging with other grant-making organisations to source alternative funding.
“South Africa remains steadfast in its commitment to achieving a just and equitable energy transition,” said Joanne Yawitch, head of the JET PMU in the presidency.
“All other IPG partners remain firmly committed to supporting South Africa’s jet IP.”
Trump’s withdrawal from climate financing initiatives comes as no surprise for the 78-year-old politician who has previously downplayed the impact of climate change.
His return to office also saw the u-s being the first nation to walk away from the 2016 Paris Agreement on Climate Change, which was established to substantially reduce global greenhouse gas emissions and provide financing to emerging economies to help transition to a low carbon economy.
During the G20 finance ministers’ meetings in Cape Town last week, the bloc finance track was unable to reach consensus on some priorities to address.
It’s understood the US led a pushback on climate financing.
The move will also impact other emerging economies, including Indonesia and Vietnam.