Exclusive-US withdraws from plan to help major global polluters move from coal

By Tim Cocks, Francesco Guarascio and Fransiska Nangoy

The United States is withdrawing from the Just Energy Transition Partnership, a collaboration between richer nations to help developing countries transition from coal to cleaner energy, the U.S. Treasury Department said on Thursday.

Reuters reported on the withdrawal on Wednesday, based on several sources in key participating countries.

Treasury Secretary Scott Bessent has withdrawn the U.S. from JETP agreements with South Africa, Indonesia and Vietnam, a department spokesperson said.

The move was consistent with an executive order President Donald Trump signed that said the U.S. had previously joined initiatives that "do not reflect our country's values or our contributions to the pursuit of economic and environmental objectives," the spokesperson said.

JETP, which consists of 10 donor nations, was first unveiled at the U.N. climate talks in Glasgow, Scotland in 2021.

South Africa, Indonesia, Vietnam and Senegal were subsequently announced as the first beneficiaries of loans, financial guarantees and grants to move away from coal.

Joanne Yawitch, head of the JETP Management Unit in South Africa, said on Wednesday that the United States had communicated its withdrawal from the plan there.

In Vietnam, two foreign officials with direct knowledge of the matter also said on Wednesday that Washington was withdrawing from JETP in the country.

Another source familiar with the matter said the U.S. had withdrawn from the JETP in Indonesia and South Africa.

"We have been informed by the U.S. of their withdrawal," said another South Africa-based source in the donor group.

"There remains significant finance available, and the International Partners Group remains fully committed to supporting South Africa to deliver on its just energy transition through the partnership," the person said.

Since Trump returned to office in January, Washington has slashed foreign aid and championed development of fossil fuels.

The sources declined to be named as they were not authorised to speak on the matter.

U.S. commitments for Indonesia and Vietnam exceeded $3 billion in total, mostly through commercial loans, while in South Africa the commitment was for $1.063 billion out of $11.6 billion pledged for the country.