The United States withdraws from energy transition plan with South Africa

The United States has announced its withdrawal from the Just Energy Transition Partnership with South Africa, thereby reducing the country’s international financial commitments in its gradual exit from coal.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The South African government has confirmed the United States’ withdrawal from the Just Energy Transition Partnership (JETP) with South Africa. This plan, launched during COP26 in Glasgow in 2021, aimed to support South Africa’s energy transition, particularly by reducing its reliance on coal, a source that still accounts for 80% of the country’s electricity production. Following this decision, the project’s international financial commitments are reduced from $13.8bn to $12.8bn.

The context of the initial agreement

The JETP was established to help South Africa achieve its climate goals while ensuring a just transition for coal sector workers. The agreement involved several major economic powers, including the European Union, the United Kingdom, France, Germany, and the United States. However, the American commitment was primarily made up of potential commercial investments, rather than concessional loans or direct financial aid, as is the case for some other participating countries.

The consequences of the US withdrawal

The withdrawal of the United States reduces direct funding for the project, which could affect South Africa’s ability to advance its efforts to diversify its energy sources. France, for example, has already provided €700mn to support this process. Kgosientsho Ramokgopa, Minister of Electricity and Energy, emphasised that the country was not solely relying on the United States’ contribution to achieve its energy transition, clarifying that additional resources could be mobilised through the private sector and other international financial institutions.

The challenges of energy transition in South Africa

Despite these financial adjustments, South Africa continues to face major challenges in its energy transition. As one of the world’s 12 largest greenhouse gas emitters, the country stands at a crossroads in terms of energy policy. Its dependence on coal remains a key factor in electricity production, and transitioning to renewable energy will require significant investment and sustained international support. However, South Africa intends to move forward with its climate goals by diversifying its energy sources while protecting jobs in the coal sector.

Chinese buyers begin negotiations for 2026 thermal coal deliveries, favouring shorter contracts to maintain flexibility in a stable price environment.
Queensland coal producers are struggling to rein in costs, which remain above pre-2022 levels as the impact of royalty hikes and margin pressures continues to weigh on the sector.
Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.