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US withdraws from climate deal to help developing nations

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Euronews or enjoy below:

🗞️ Driving the news: The United States has withdrawn from the International Partners Group (IPG), a climate finance deal supporting energy transitions in South Africa, Indonesia, and Vietnam
The agreement was designed to help emerging economies move away from coal toward renewable energy
South Africa confirmed the US withdrawal, stating it would lose over $1 billion in investment pledges

🔭 The context: The Just Energy Transition agreements were launched at COP26 in 2021, with pledges totaling $13.8 billion before the US exit
These deals recognize that coal-dependent developing nations lack the financial capacity for a rapid transition to renewables
While the US withdrawal is a setback, other nations, including the EU, UK, and Japan, remain committed

🌍 Why it matters for the planet: South Africa, Indonesia, and Vietnam are among the top 20 global emitters of greenhouse gases
The loss of US funding could delay coal plant closures, prolonging fossil fuel dependency
A slower transition increases emissions, worsening climate impacts worldwide

⏭️ What's next: Other IPG members will continue supporting energy transitions, but South Africa warns that key grant-funded projects have been canceled
The move aligns with President Donald Trump’s broader rollback of US climate commitments, including withdrawing from the Paris Agreement in January 2025
Experts worry this could undermine global climate cooperation

💬 One quote: “South Africa remains steadfast in its commitment to achieving a just and equitable energy transition.” — Joanne Yawitch, Just Energy Transition Project Management Unit

📈 One stat: South Africa relies on coal for over 80% of its electricity, making a transition to renewables essential but challenging

Click for more news covering the latest on sustainable finance

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