The United States has withdrawn from a climate funding agreement designed to support developing countries in transitioning to clean energy, according to South Africa and Indonesia.
The Just Energy Transition Partnerships (JETP) were established to help emerging economies move away from coal with financial assistance from wealthier nations. South Africa was the first country to sign such a deal in 2021, followed by Indonesia in 2022 with a $20 billion funding pledge.
The South African government confirmed that the US formally withdrew from the agreement on February 28, 2025, citing executive orders issued by President Donald Trump.
“The Just Energy Transition Project Management Unit in the Presidency acknowledges the decision of the United States of America to withdraw from the Just Energy Transition Partnership with South Africa,” the statement partly read.
“The South African government was formally informed of this decision by the US Embassy on 28 February 2025,” it added.
Indonesia also received notification from the US embassy in Jakarta.
While the overall funding pledge for Indonesia remains unchanged, officials anticipate the withdrawal will affect research and grant allocations.
The US had committed $56 million in grants and $1 billion in potential commercial investments for South Africa. Despite the withdrawal, the country still has $12.8 billion in pledged support from other partners, including France, Germany, Britain, Canada, and the EU.
South Africa’s government reaffirmed its commitment to clean energy, stating that its transition plans would continue, with greater emphasis on private sector partnerships. The country remains heavily reliant on coal, which generates 80 percent of its electricity.
