U.S. Exits Just Energy Transition Partnership, Impacts Global Clean Energy

March 5 – The United States is pulling out of the Just Energy Transition Partnership (JETP), a global initiative designed to support developing countries in shifting from coal to cleaner energy sources, according to multiple sources from key participating nations.

JETP, launched at the 2021 U.N. climate talks in Glasgow, includes 10 donor countries and has provided financial assistance to nations like South Africa, Indonesia, Vietnam, and Senegal. The initiative offers a mix of loans, financial guarantees, and grants to help phase out coal dependency.

Joanne Yawitch, head of South Africa’s Just Energy Transition Project Management Unit, confirmed on Wednesday that the U.S. had officially communicated its withdrawal from the partnership. In Vietnam, two foreign officials with direct knowledge of the situation also stated that Washington was exiting the program there, with one noting that the U.S. was pulling out of all JETP initiatives, including in Indonesia.

A separate source familiar with the matter confirmed the U.S. had withdrawn from JETP programs in both Indonesia and South Africa. "We have been informed by the U.S. of their withdrawal," said a South Africa-based source from the donor group. Despite the exit, the source emphasized that “significant finance remains available, and the International Partners Group remains fully committed to supporting South Africa’s energy transition.”

The decision aligns with broader policy shifts under President Donald Trump, who returned to office in January. His administration has prioritized fossil fuel development and made deep cuts to foreign aid.

U.S. financial commitments under JETP included over $3 billion in commercial loans for Indonesia and Vietnam and $1.063 billion for South Africa, out of a total $11.6 billion pledged for the country.

The U.S. State Department has yet to comment on the withdrawal. Sources requested anonymity as they were not authorized to discuss the matter publicly.