JOHANNESBURG — The United States has announced its withdrawal from a climate accord designed to aid a select group of developing nations in transitioning from coal to renewable energy, putting a damper on what was considered a potential model for future efforts to curb carbon emissions. This decision was confirmed by one of the involved countries on Thursday.
South Africa revealed that it had received notification regarding the U.S. exit from the International Partners Group, a consortium of wealthy nations dedicated to funding energy transitions in countries like South Africa, Indonesia, Vietnam, and Senegal. This group includes the European Union, the U.K., Germany, France, Italy, Canada, Japan, Norway, and Denmark.
According to Chrispin Phiri, spokesperson for South Africa’s Foreign Ministry, the U.S. declared its immediate withdrawal from agreements concerning South Africa, Indonesia, and Vietnam. The agreements had not included U.S. financial commitments for Senegal although other IPG members had pledged support.
This move is consistent with previous actions by former President Donald Trump, including the decision to exit the global Paris climate agreement in January. The Paris agreement aims to restrict global temperature increases to 2.7 degrees Fahrenheit (1.5 degrees Celsius) above pre-industrial levels, or to remain well below 3.6 degrees Fahrenheit (2 degrees Celsius) should the first goal be unattainable.
South Africa stands to lose over $1 billion in future U.S. investment pledges dedicated to phasing out coal-fired power plants in favor of renewable energy, as highlighted by a statement from President Cyril Ramaphosa’s office. Phiri indicated this has resulted in the cancellation of planned grant projects within South Africa that were in various stages of development.
In addition, the U.S. has withdrawn future funding for Indonesia’s energy transition efforts. These funds were previously sourced from the United States aid agency and the U.S. Department of Energy, according to Fabby Tumiwa, executive director at the Institute for Essential Services Reform, a non-profit organization focused on climate issues.
Despite the U.S. pulling out, other affluent countries remain committed to the agreements and intend to continue their support. “South Africa remains steadfast in its commitment to achieving a just and equitable energy transition,” expressed Joanne Yawitch, head of the Just Energy Transition Project Management Unit in South Africa, affirming the solidarity of the remaining IPG members.
Reflecting on the U.S.’s decision, U.K. Climate Envoy Rachel Kyte, attending an energy conference in South Africa, described it as “regrettable” when speaking to the news outlet News24.
South Africa was the pioneer in signing up for a “just energy transition” agreement during the 2021 United Nations climate conference, having secured $13.8 billion in pledges before the U.S. withdrawal. Following its lead, Indonesia and Vietnam entered their own multibillion-dollar deals in 2022.
These agreements aim to acknowledge the reliance that some developing countries have on coal to sustain their economies, given the financial and infrastructure challenges in abruptly shifting to green energy. South Africa, as Africa’s most industrialized nation, generates over 80% of its electricity from coal, while around 60% of Indonesia’s energy needs are fulfilled through coal.
These countries—South Africa, Indonesia, and Vietnam—are recognized among the top 20 emitters of greenhouse gases globally, based on ClimateWatch’s data compilation.
