US withdraws from Just Energy Transition partnership with SA
South Africa says it notes the United States’ decision to revoke the US International Climate Finance Plan, which had led to the withdrawal from the Just Energy Transition (JET) partnership with South Africa.
Image source: Petr Malinak – 123RF.com
Last month, US President Donald Trump signed Executive Order 14162 to revoke and rescind this plan.
According to reports, this also means the immediate withdrawal of the United States from the Paris Agreement designed to combat climate change by curbing global greenhouse gas emissions.
The Department of International Relations and Cooperation (Dirco) said President Trump’s recent actions have affected the policies aimed at advancing South Africa’s Just Energy Transition Investment Plan (JETP).
Projects cancelled
“As a result, effective immediately, the US has announced the termination of its membership of the International Partners Group (IPG) for JETPs South Africa, Indonesia and Vietnam,” the department explained.
With the United States withdrawal, the department said associated financial pledges are also withdrawn.
“Grant projects that were previously funded and in planning or implementation phases have been cancelled.”
However, Dirco said the country remains committed to implementing international agreements, including the decisions taken at the historic Paris Agreement.
“South Africa and other international partners will evaluate the implications of the US withdrawal from the JETP,” the department said.
Opportunity for transformation
During a parliamentary discussion regarding the United States’ decision to reduce funding from the United States Agency for International Development (USAid), Dirco Minister Ronald Lamola said South Africa should not lament this change. Instead, the country should view this situation as an opportunity for transformation.
“We must act in unison to mitigate the negative impact of the USAid cuts. We must seize this moment to reconceptualise our global system and ensure that our domestic imperatives serve our nation efficiently and sustainably,” Lamola told Members of Parliament (MP).
He highlighted that the United States is South Africa’s biggest trading partner in the world after China. South Africa is home to 601 American companies, accounting for 143,000 jobs.
The Minister told MPs that in 2023, bilateral trade between the US and South Africa equalled $22bn, with the United States being a significant agricultural export destination for South Africa.
South Africa exports platinum, motor vehicles, reaction initiators, ferroalloys, citrus, jewellery, nuts, chemicals, wines, engines, turbines, and ships and boats to the United States.
According to Lamola, about 22 South African companies are currently invested in the United States, providing about 6,900 jobs.
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Source: SAnews.gov.za
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