Pretoria: The United States has withdrawn from a climate funding agreement aimed at assisting developing nations in transitioning to clean energy, according to South Africa, the first country to benefit from the initiative. The Just Energy Transition Partnerships (JETP) are designed as ambitious financing arrangements between developed and developing nations to reduce reliance on coal and promote cleaner energy sources.
According to Bangladesh Sangbad Sangstha, South Africa, which has significant coal reserves yet faces energy shortages, was the inaugural beneficiary of a JETP agreement established in 2021. However, under the administration of President Donald Trump, the United States has exited its multi-million-dollar deal with Pretoria, as announced by a unit within the South African presidency. In a statement, the Just Energy Transition Project Management Unit confirmed that the South African government was officially notified of the decision by the US Embassy on February 28, 2025. The withdrawal was attributed to executive orders issued by Trump in earlier months.
The United States had committed $56 million in grants to the initiative, along with an additional $1 billion in potential commercial investments. The initiative, introduced during the United Nations climate talks in Scotland in 2021, garnered support from France, Germany, Britain, Canada, and the European Union. Alongside South Africa, countries such as Senegal, Vietnam, and Indonesia were identified as initial recipients of support.
Despite the US withdrawal, South Africa continues to have $12.8 billion in pledges, as noted by Pretoria. The relationship between Pretoria and Washington has been strained over several policy disagreements, including a new land ownership law in South Africa. Last month, Trump froze aid to South Africa over the law, alleging it would permit land seizures from the white minority, although these claims lack evidence. The executive order also highlighted foreign policy disputes between the United States and South Africa, particularly concerning the conflict in Gaza and South Africa’s legal action against Israel at the International Court of Justice.
In response to the situation, South Africa has expressed its determination to proceed with the clean energy transition, exploring partnerships with the private sector. “Our commitment to a just energy transition is not conditional on other sovereign powers,” stated Energy Minister Kgosientsho Ramokgopa at a Group of 20 meeting. As Africa’s most industrialized nation and one of the world’s largest polluters, South Africa generates approximately 80 percent of its electricity from coal.