As a result of the U.S. exit, South African President Cyril Ramaphosa's office indicated that previously funded grant projects in South Africa have been canceled.

The JETP was initially celebrated for securing funding for clean energy transitions in developing nations, but progress has been hampered by financial difficulties and leadership changes.

The shift in U.S. policy follows the return of President Donald Trump to office in January 2025, during which the administration has reduced foreign aid and promoted fossil fuel development.

The recent withdrawal of the United States from the Just Energy Transition Partnership (JETP) has significant implications for international climate initiatives, particularly affecting the International Partners Group that includes the EU, U.K., Germany, and Japan.

Initially, South Africa secured $13.8 billion in pledges under a just energy transition agreement at the UN climate conference in 2021, aimed at supporting its shift away from coal.

Chrispin Phiri, spokesperson for South Africa's Foreign Ministry, confirmed that the U.S. withdrawal is effective immediately, impacting ongoing and planned projects in South Africa, Indonesia, and Vietnam.

The U.S. also ceased funding for Indonesia's energy transition program, which was previously supported by the U.S. aid agency and the Department of Energy, further complicating the transition efforts in the region.

Sources in Vietnam have reported that the U.S. is exiting JETP programs there as well, indicating a broader withdrawal from the initiative.

This withdrawal has raised concerns among international climate advocates regarding the future of global climate funding and the ability to meet climate targets set by international agreements.

Despite the U.S. withdrawal, South Africa remains committed to its energy transition goals, as expressed by officials involved in the Just Energy Transition Project Management Unit.

The United States has withdrawn from a significant $45 billion global climate finance coalition, which was seen as a key mechanism for mobilizing financial support and technology transfer to emerging economies.

While the U.S. withdrawal is a setback, a South African source noted that significant financing remains available through the International Partners Group.