The initiative is intended to help emerging economies move away from coal and other non-renewable energy sources.
The United States has withdrawn from a climate agreement in which rich nations pledged billions of dollars to help a small group of developing countries switch from coal to green energy sources in a possible blueprint for future deals to cut carbon emissions, one of the participating countries said Thursday.
South Africa said it had received notice that the US had withdrawn from the International Partners Group (IPG), a bloc of rich countries that has pledged money for energy transitions in South Africa, Indonesia, Vietnam and Senegal. The bloc includes the European Union, the UK, Germany, France, Italy, Canada, Japan, Norway and Denmark.
The US had declared, effective immediately, its withdrawal from the agreements in South Africa, Indonesia and Vietnam, said Chrispin Phiri, a spokesperson for the South African Foreign Ministry.
The US had not pledged money for Senegal’s energy transition, although other members of the IPG did.
It’s another move by President Donald Trump to take the US out of global climate pacts after he signed an executive order in January to withdraw from the landmark Paris climate agreement that brings countries together to combat global warming.
That agreement is aimed at limiting long-term global warming to 1.5 degrees Celsius above pre-industrial levels or, failing that, keeping temperatures at least well below 2 degrees Celsius above pre-industrial levels.
What was the money being used for?
The US withdrawal from the IPG meant South Africa would lose more than $1 billion (€923 million) in future investment pledges from the US, according to a statement from the office of South African President Cyril Ramaphosa. This money was intended to help gradually decommission its polluting coal-fired power stations in favor of renewable energy.
Phiri said grant projects in South Africa that were previously funded “and in planning or implementation phases have been cancelled.”
The US had cancelled future funding for Indonesia’s energy transition programme that had been provided through the United States aid agency and the US Department of Energy, said Fabby Tumiwa, executive director of the Institute for Essential Services Reform, a climate-focused non-profit.
Officials said the other rich countries were still part of the agreements and they would continue to provide support.
“South Africa remains steadfast in its commitment to achieving a just and equitable energy transition,” said Joanne Yawitch, the head of the Just Energy Transition Project Management Unit in South Africa. “All other IPG partners remain firmly committed.”
UK Climate Envoy Rachel Kyte, who was in South Africa for an energy conference, told the News24 outlet it was “regrettable” that the US had withdrawn.
What is the just energy transition agreement?
South Africa was the first country to sign up to a so-called just energy transition agreement at the United Nations climate conference in 2021.
It said it had received $13.8 billion (€12.7 billion) in pledges before the US withdrawal. Indonesia and Vietnam signed their multibillion-dollar deals in 2022.
The agreements are meant to recognise that some developing countries are reliant on coal to keep their economies going. They don’t have the money or the green energy capacity to swiftly change and need to convert more gradually.
South Africa, the most advanced economy in Africa, relies on coal for more than 80 per cent of its electricity supply. Nearly all of Indonesia’s energy needs are currently met by fossil fuels, with 60 per cent coming from coal.
South Africa, Indonesia and Vietnam are all among the world’s top 20 emitters of greenhouse gases, according to ClimateWatch, which compiles data on climate change.
