The US is withdrawing from the Just Energy Transition Partnership (JETP), a multinational initiative launched at the 2021 UN climate talks in Glasgow to aid coal-dependent developing nations in shifting to cleaner energy.

This decision, confirmed by sources in South Africa, Vietnam, and Indonesia, that the US is withdrawing from the Just Energy Transition Partnership marks a significant policy shift under President Donald Trump, who took office in January 2025 and has prioritized fossil fuel development over foreign climate aid.

With JETP pledges totaling billions for countries like South Africa, Indonesia, Vietnam, and Senegal, the US exit raises concerns about the future of global clean energy efforts.

Background and Scope of JETP

JETP was established in 2021 by 10 donor nations, including the US, UK, France, Germany, and the EU, to mobilize funds and technical support for a “just” transition from coal in emerging economies.

South Africa received an $11.6 billion pledge (US contribution: $1.063 billion), while Indonesia and Vietnam together secured over $3 billion, primarily in loans, grants, and guarantees.

The partnership aimed to cut up to 1.5 gigatonnes of emissions over 20 years, supporting renewable energy infrastructure and job retraining for coal-dependent communities.

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Details of the US Withdrawal

Joanne Yawitch, head of South Africa’s JETP Project Management Unit, confirmed on March 5, 2025, that the US notified its exit from the South African program.

Two officials in Vietnam reported the US withdrawal from JETP there, with one stating it extends to all JETP programs, including Indonesia, though the US State Department has not commented.

A source in the International Partners Group (IPG) in South Africa verified the US pullout but emphasized that remaining donors are committed, with “significant finance” still available, reversing Biden-era climate commitments.

Impact on Global Clean Energy Efforts

The US exit threatens JETP’s momentum, potentially delaying coal phase-outs in recipient countries and undermining the Paris Agreement‘s target, as coal accounts for a major share of global emissions.

Indonesia and Vietnam, key coal producers, may face funding gaps, slowing renewable energy adoption despite their abundant solar and wind potential. South Africa’s transition, reliant on JETP for grid upgrades and worker support, could stall, though IPG partners like the UK and EU vow to continue support.

Critics warn that this move weakens US climate leadership, possibly emboldening other nations to scale back clean energy commitments while fossil fuel reliance grows amid global energy demands.

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