EU boost for SA’s at risk Just Energy Transition

THE International Partners Group (IPG), a coalition comprising countries including the UK, Germany, France, and the European Union, has announced its intentions to fill the funding gap left by the US after its withdrawal from the Just Energy Transition Partnership (JETP).

- BANELE GININDZA [e-mail]

This decision follows the US sever-ing its financial support, which previously included $56 million (R1 billion) in grant funds and $1bn in commercial debt and equity aimed at aiding South Africa's transition from coal to cleaner energy sources. In a statement, the UK’s Foreign Commonwealth and Development Office highlighted discussions among IPG partners to continue sup-porting initiatives that had been finan-cially backed by the US.

The total initial international pledges to South Africa now amount to $12.8bn, which incorporates more than $9bn from the IPG along with contri-butions from Spain, Switzerland, and Canada. However, this total excludes Spanish export credits.

In their statement, the IPG reiter-ated their commitment to collaborating with the South African government and other stakeholders to allocate exist-ing funding effectively.