South Africa is looking elsewhere to raise money for the Just Energy Transition, after the United States (US) withdrew its contribution of an estimated total $45 billion pledge to the climate fund.
The US wrote to Indonesia, Vietnam, South Africa and the Green Climate Fund, notifying them of an immediate withdrawal of funding towards the Just Energy Transition Partnership (JETP).
South Africa’s JETP initiative was launched in 2021 with the International Partners Group (IPG) – including the European Union, Germany, the UK, France and the US – at the COP26 climate summit in Glasgow.
The Just Energy Transition Partnership (JETP) initiative is meant to support several developing countries in their move away from coal to more cleaner alternatives (renewable energy).
Last week, United Kingdom climate envoy, Rachel Kyte said while in South Africa, that the US’ action is “regrettable.”
She also announced additional funding support for South Africa’s JETP.
Joanne Yawitch, head of South Africa’s Presidential Just Energy Transition Project Management Unit, said in a statement on Thursday, that the government remains “steadfast in its commitment to achieving a just and equitable energy transition.”
She also said the country would seek alternative funding.
The US pledged to South Africa an estimated $13,8 billion, but committed to grant funding of $56 million and $1 billion in commercial investments.
Thandolwethu Lukuko, Climate Action Network’s director for South Africa, said South Africa’s aid from the US for its JETP, accounted for about 10% of the initial investment.