US Backs Out of $9.3 Billion Climate Finance Deal for South Africa, Senegal, and Others

The US has withdrawn from a $9.3 billion climate finance deal aimed at helping developing countries transition from coal to renewable energy. The Just Energy Transition Partnership (JETP), launched in 2021, was designed to assist developing nations in shifting to cleaner energy through loans and grants, beginning with South Africa, Indonesia, Vietnam, and Senegal. The US had pledged over $1 billion to South Africa’s plan and $3 billion for Indonesia and Vietnam, but has now exited all JETP agreements. The withdrawal casts doubt on the transition efforts, particularly in coal-reliant South Africa, where 70% of electricity comes from coal, and thousands depend on the sector for jobs.

Source: Africa Business Insider