South Africa says it notes the US’ 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.
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 US from the Paris Agreement. The agreement was designed to combat climate change by curbing global greenhouse gas emissions.
Energy transition investment plan
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, 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 said.
With the US withdrawal, the department said associated financial pledges are also withdrawn.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.”
SA committed to Paris Agreement
However, Dirco said the country remains committed to implementing international agreements. These include 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.
During a parliamentary discussion regarding the US decision to reduce funding from the 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.
USAID cuts
“We must act in unison to mitigate the negative impact of the USAID cuts. And we must seize this moment to reconceptualise our global system. To ensure that our domestic imperatives serve our nation efficiently and sustainably,” Lamola told MPs.
He highlighted that the US 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 said in 2023, bilateral trade between the US and South Africa equalled US$22 billion. The US is a significant agricultural export destination for South Africa, he said.
South Africa exports platinum, motor vehicles, reaction initiators, ferroalloys, citrus, jewellery, nuts, chemicals, wines, engines, turbines, and ships and boats to the US.
According to Lamola, about 22 South African companies are currently invested in the US. These provide about 6, 900 jobs.
- SAnews.gov.za
