In March 2025, the U.S. Treasury announced its withdrawal from the Just Energy Transition Partnership (JETP) with South Africa, Indonesia, and Vietnam, putting the $45 billion initiative in limbo.
The move is part of the Trump administration’s broader rollback of climate commitments following its exit from the Paris Agreement, the withdrawal of a $4 billion pledge to the Green Climate Fund and the departure from the Loss and Damage Fund board.
Launched at COP26 in 2021, JETP was designed to help developing countries to transition from coal to clean energy. The partnership, backed by 10 donor nations, provides loans, grants, and technical support for energy transitions in emerging economies. The 10 include the United States (before its withdrawal), the United Kingdom, the European Union, Germany, France, Canada, Italy, Japan, Norway, and Denmark.
What’s at stake
South Africa, which generates 80% of its electricity from coal, was the first to sign the deal. The South African presidency confirmed the U.S. withdrawal, stating that the U.S. had committed $56 million in grants and $1 billion in potential investments.
“The withdrawal of the U.S. from the JETP reduces overall international JET pledges to South Africa from $13.8 billion to $12.8 billion, largely in respect of commercial investment potential,” the presidency explained.
Nevertheless, Joanne Yawitch, head of South Africa’s JETP PMU, reaffirmed the country’s commitment to a just energy transition, reiterating that other partners “remain firmly committed to supporting South Africa’s JET P.”
Paul Butarbutar, head of Indonesia’s JETP Secretariat, also confirmed the U.S. withdrawal while speaking to Eco-Business but noted that France, Germany, the UK, Canada, the EU, and private donors remain engaged.
Indonesia, where coal powers 61.8% of the grid, secured $20 billion in pledges through JETP in 2022 at the G20 Summit to cap emissions, expand renewable energy to 34% by 2030, and achieve net zero in the power sector by 2050. The U.S. had pledged $2 billion, including a $1 billion World Bank loan guarantee and a $1 billion investment via the U.S. International Development Finance Corporation (DFC).
Vietnam’s JETP secured $15.5 billion in pledges, with $7.75 billion from the International Partners Group – including the U.S., EU, and other nations – and $7.75 billion from the Glasgow Financial Alliance for Net Zero to support its transition from coal to clean energy. As of April 2024, coal accounted for approximately 64.6% of Vietnam’s electricity production.
U.S. exit by numbers
Source: Government statements, World Bank
Global actors cautiously optimistic
During a visit to South Africa last Thursday, UK climate envoy Rachel Kyte called the U.S. withdrawal “regrettable” but emphasized, “The rest of the world moves on,” confirming the UK’s commitment to the transition.
Norly Mercado, Asia Regional Director at 350.org, criticized the move, stating that as a major polluter, the U.S. has a duty to support vulnerable nations.
“Big polluters like the United States are financially obligated to support climate-vulnerable nations. The U.S. exit from JETP sets a dangerous precedent, signaling that it is no longer accountable to its climate obligations.”
Landry Ninteretse,350.org Africa’s Regional Director, called the decision a “regressive step” and a “betrayal of trust,” urging South Africa to persist in its clean energy commitments.
Conversely, Germany reaffirmed its dedication to JETP. Jochen Flasbarth, German State Secretary, expressed “regret” over the U.S. withdrawal but emphasized:
“We are convinced that the work of the energy transition partnerships can continue successfully.”
