The U.S. has pulled out of a $9.3 billion climate finance pact between richer nations to help developing countries transition from coal to cleaner energy.
- The U.S. has withdrawn from a $9.3 billion climate finance pact aimed at helping developing countries transition from coal to cleaner energy.
- The U.S. had planned to contribute about $1 billion in commercial loans to the deal.
- South Africa, Indonesia, Vietnam, and Senegal were announced as the first beneficiaries of loans, financial guarantees, and grants to move away from coal.
The U.S. has pulled out of a $9.3 billion climate finance pact between richer nations to help developing countries transition from coal to cleaner energy.
The Just Energy Transition Partnership, which consists of 10 donor nations, was first unveiled at the U.N. climate talks in Glasgow, Scotland in 2021.
South Africa, Indonesia, Vietnam and Senegal were announced as the first beneficiaries of loans, financial guarantees and grants to move away from coal.
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But for a country like South Africa, where coal generates about 70% of the electricity and provides jobs for thousands, making the switch won’t be easy.
The US had planned to contribute about $1 billion in commercial loans to the deal. Meanwhile, France and Germany have taken the lead in implementing the agreement, providing €1.5 billion in concessional loans, Reuters reported.
Joanne Yawitch, head of South Africa’s Just Energy Transition Project Management Unit, confirmed on Wednesday that the U.S. had formally communicated its withdrawal from the country’s plan.
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In Vietnam, two foreign officials with direct knowledge of the situation stated that Washington was also pulling out of its Just Energy Transition Partnership (JETP) there. One of them further indicated that the U.S. was withdrawing from all JETP programs, including in Indonesia.
Additionally, another source familiar with the matter confirmed that the U.S. had exited JETP agreements in both Indonesia and South Africa.
U.S. commitments for Indonesia and Vietnam exceeded $3 billion in total, mostly through commercial loans, while in South Africa the commitment was for $1.063 billion out of $11.6 billion pledged for the country.
