U.S. pulls out of JETP

The U.S. is withdrawing from the Just Energy Transition Partnership (JETP), a global initiative to help developing countries transition from coal, sources confirmed. The move, part of President Donald Trump’s policy shift, affects projects in South Africa, Indonesia, and Vietnam.

U.S. Ends Participation in JETP

The U.S. withdrawal from JETP was confirmed by sources in South Africa, Indonesia, and Vietnam. The initiative, launched at the 2021 U.N. climate talks, aimed to provide financial support for clean energy transitions in developing countries.

Joanne Yawitch, head of the Just Energy Transition Project Management Unit in South Africa, said on Wednesday that the U.S. had formally communicated its exit. Officials in Vietnam and Indonesia also confirmed the decision.

“We have been informed by the U.S. of their withdrawal,” a source in the South Africa donor group said. “There remains significant finance available, and the International Partners Group remains fully committed.”

Impact on Climate Finance

Under JETP, the U.S. had pledged more than $3 billion in loans and financial support for Indonesia and Vietnam, and $1.063 billion for South Africa as part of an $11.6 billion package. The decision raises concerns about funding gaps for clean energy projects in these countries.

Since Trump returned to office in January, his administration has prioritized fossil fuel development and cut back on foreign climate financing. The U.S. State Department has not yet responded to requests for comment.

Future of JETP

Despite the U.S. exit, other donor nations, including the EU, UK, and Germany, are expected to continue supporting JETP. However, the withdrawal raises questions about long-term funding commitments and the feasibility of transitioning away from coal without U.S. backing.

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