Last week, the South African government formally noted the United States’ decision to revoke the US International Climate Finance Plan, which led to the US’ withdrawal from the Just Energy Transition (JET) partnership with South Africa.
The South African government last week confirmed the US’ withdrawal from the Just Energy Transition (JET) partnership.
In February, US President Donald Trump signed Executive Order 14162 to revoke and rescind this US International Climate Finance Plan. According to reports, this also means the immediate withdrawal of the United States from the Paris Agreement, which is foundational to combatting 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).
“As a result of the Executive Order, effective immediately, the US has announced the termination of its membership of the International Partners Group (IPG) for South Africa, Indonesia and Vietnam,” the department said.
With the United States’ withdrawal, associated financial pledges are also withdrawn.
“Grant projects that were previously funded and in planning or implementation phases have been cancelled,” the department said.
However, DIRCO said South Africa 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 and move forward.
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. The country should view this situation as an opportunity for transformation, he said.
“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.
He highlighted that the United States is South Africa’s biggest trading partner internationally after China. South Africa is home to 601 American companies, accounting for 143 000 jobs.
The minister said in 2023, bilateral trade between the US and South Africa amounted to US$ 22 billion, with the United States being a significant agricultural export destination for South Africa. As well as citrus, nuts and wine, South Africa exports platinum, motor vehicles, reaction initiators, ferroalloys, jewellery, chemicals, 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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