S'abonner

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:

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.

  • Popular on energynews.pro
Exus Renewables North America secures $308.2 million for solar and wind projects
Turkey proposes new expanded energy deal to Iraq with oil, gas and electricity
NANO Nuclear reaches key milestone with prototype induction pump for reactors
Iberdrola raises $5.9 billion to strengthen its grids in the UK and the US
Kazakhstan launches oil refining strategy to 2040 with $5bn in investments
Ramaco opens first US rare earth mine in 70 years
Ramaco Resources officially opens in the United States the first mine dedicated to rare earths in seven decades, also inaugurating Wyoming's first new coal mining operation in over half a century during a ceremony attended by senior political officials.
Turkey’s Eren Energi seeks 375,000 tonnes of thermal coal before December
Turkish power producer Eren Energi Elektrik Uretim has launched a tender to buy 375,000 tonnes of thermal coal to be delivered in five shipments starting from August 2025, according to a document seen by Platts on June 27.
Ireland exits coal permanently with closure of Moneypoint power plant
Ireland ends four decades of coal-based electricity production by converting its Moneypoint power plant to heavy fuel oil, now exclusively reserved for the balancing market until 2029.
China’s Coal Imports Fall by 18%, Affected by Low Domestic Prices
China's coal imports dropped 18% in May, driven by historically low domestic prices and significant growth in national production, shifting the country's energy market dynamics.
India’s coal-fired electricity generation drops 9.5% in May, steepest decline in five years
India’s unprecedented drop in power demand led to a sharp decline in coal-based generation in May, while renewable energy output reached a record high.
China approves 11.29 GW of coal in Q1 despite unprecedented decline in 2024
Greenpeace data shows a renewed wave of coal projects in early 2025, as renewable capacity surpasses thermal energy for the first time.
Coal Lawsuit: BlackRock Warns on U.S. Energy Independence
Financial giant BlackRock highlights economic and strategic risks linked to an antitrust procedure backed by Washington, targeting major asset managers accused of conspiring to reduce coal production in the United States.
Adani Power invests $2bn in a 1,500 MW coal power plant in Uttar Pradesh
Adani Power will supply 1,500 MW to Uttar Pradesh through an ultra-supercritical coal power plant built under the DBFOO model, at a tariff of Rs 5.383 per unit.
Australian coal mines emit 40% more methane than reported, according to EMBER and KAYRROS
A satellite analysis led by Ember and Kayrros shows that methane emissions from Australian mines are 40% higher than official reports, revealing significant gaps in the current coal sector monitoring.
Trump signs executive orders to ease coal industry regulations
Donald Trump issues several executive orders aimed at reducing regulations on the U.S. coal industry, addressing economic expectations from coal-producing states while securing national energy supply.
Zambia and Zimbabwe restart coal-fired power plants despite global decline
Backed by Chinese funding, Zambia and Zimbabwe are reviving coal projects in contrast to international energy sector trends.
New coal-fired power plant additions fall to 20-year low
New coal-fired electricity capacity added in 2024 dropped to 44 GW, driven mainly by China and India, according to a report released on Thursday.
Finland: Helen ends coal use with closure of Salmisaari power plant
Finnish energy company Helen has halted operations at the Salmisaari plant, the country’s last coal facility, halving its carbon dioxide emissions in one year.
Glencore challenged over major discrepancies in methane emissions at Australian mine
An independent study suggests that the Hail Creek mine may emit up to eight times more methane than reported in Glencore's official disclosures.
Eskom adds 800 MW to South Africa’s grid with Kusile Unit 6
Eskom has connected Unit 6 of the Kusile coal-fired power station, adding 800 MW to the national grid amid efforts to stabilise electricity supply in South Africa.
India Proposes the Creation of a Coal Exchange for the Domestic Market
The Indian government presents a project to create a coal exchange for the domestic market, a measure aimed at improving transparency and regulating the local coal market.
Indonesia introduces a reference price to regulate its coal market from March 2025
Indonesia sets a floor price for coal to strengthen its control over domestic prices and influence international markets. This new strategy will take effect on March 1, 2025.
Indonesia: Growing Dependence on Coal Undermines Climate Commitments
Indonesia continues to strengthen its dependence on coal, jeopardizing its greenhouse gas emission reduction commitments. This paradox is highlighted in a recent report, emphasizing the tension between environmental goals and economic realities.
BHP Reports Strong Demand Despite Falling Mineral Prices
Australian mining giant BHP saw its net profit multiply fivefold, reaching $4.4 billion, despite an 8% drop in revenue. Sustained demand and signs of recovery in China strengthen its outlook.
China starts new coal plants, jeopardizing its climate goals
In 2024, China began building new coal power plants, a decision that threatens its goal of reaching peak carbon emissions by 2030, according to a report published by the Centre for Research on Energy and Clean Air (Crea) and Global Energy Monitor (GEM).

FOSSILS

POLICY

RENEWABLE

PLUS

© XMARKET PUBLISHING