The United States withdrew from the massive climate agreement known as Just Energy Transition Partnerships (JETP), the deal goal is to assist South Africa, Indonesia, and other developing countries in their transition to clean energy.

The multibillion-dollar program started in 2021 to assist emerging economies in transitioning away from coal and other non-renewable energy sources.

The European Union, France, Germany, the United Kingdom, the Netherlands, and Denmark are among the other partners who are still dedicated to the program.

South Africa and Indonesia, two of the program’s beneficiaries, will be significantly impacted by the US withdrawal.

Prior grant projects that were “in planning or implementation phases have been canceled,” according to a statement from the office of South African President Cyril Ramaphosa.

Billions for projects in South Africa, Indonesia and Vietnam

Citing an executive order from President Donald Trump, Paul Butarbutar, head of Indonesia’s JETP Secretariat, confirmed that he was notified of Washington’s decision by the US embassy in Jakarta.

He pointed out that the US withdrawal will affect transition studies and grant funding in Indonesia, even though the $21.6 billion (€20.70 billion) pledge from private and public donors has not changed.

$56 million (€52.37 million) in grants and an additional $1 billion in possible commercial investments were promised to the nation under the terms of the South Africa agreement. Vietnam and Indonesia also reached similar agreements.

Can South Africa afford a green transition?

While calling the US withdrawal “regrettable,” UK climate envoy Rachel Kyte assured South Africa that “the rest of the world moves on.”

With 80% of its electricity coming from coal, South Africa is among the biggest polluters in the world. “Our commitment to a just energy transition is not conditional on other sovereign powers,” said Kgosientsho Ramokgopa, minister of energy.

But the nation’s frequent power outages have strengthened political resistance to coal plant closures.

In 2021, the JETP was heralded as a breakthrough because it provided a model for combining public and private funding to assist developing countries’ transitions to clean energy. However, because of financial difficulties, changes in leadership in Vietnam and Indonesia, and the difficulties of power plant shutdowns, progress has been slow to materialize.

Photo of Cape Town by Tim Johnson on Unsplash.