Just Energy Transition Partnerships: A Mirage or a Climate Solution?

by Anna

Amid the urgency to combat climate change, Just Energy Transition Partnerships (JETPs) have emerged as potential solutions, aiming to help developing countries transition away from coal and reduce carbon emissions. However, as these multi-billion dollar deals gain attention, questions arise about their effectiveness and impact. Here’s what you need to know about JETPs:


What is a JETP?

JETPs are financing agreements between a small group of wealthy countries and a major emerging economy, typically heavily reliant on coal. The primary goals include limiting the environmental and social impacts on communities in developing countries while addressing the donors’ desire for cost-effective emissions reductions and the receiving nations’ aspirations for development and economic growth.


Countries Involved:

The first JETP, valued at $8.5 billion, was established between South Africa and a consortium of wealthy nations led by Britain during the 2021 COP26 climate talks. A second deal worth $20 billion was signed with Indonesia. Vietnam has also presented a $15-billion JETP blueprint. Senegal has announced a deal worth approximately 2.5 billion euros, focusing on gas resources.

Concerns and Criticisms:

Critics have raised concerns about the financial structure of JETPs, particularly in the case of South Africa, where the deal largely consisted of loans with interest rates not significantly better than market rates. The funding provided by JETPs is often deemed insufficient to cover the entire energy transition in recipient countries, acting more as an incentive for attracting private finance.

Financial Shortfalls:

Countries like South Africa and Indonesia have expressed the need for significantly larger sums than what JETPs currently offer. South Africa, for instance, estimates a requirement of around $80 billion over five years, while Indonesia anticipates needing at least $97.3 billion.

Viability and Future Prospects:

Despite criticisms and financial shortfalls, JETPs enjoy high-level support. While there are doubts about a JETP for India, with reports of New Delhi having reservations, these partnerships could still play a role in informing a more comprehensive and systemic approach to support developing countries in their transition away from fossil fuels.


The effectiveness of JETPs remains a subject of debate, with their potential success hinging on high-level support and the ability to attract additional private finance. As the world grapples with the imperative to combat climate change, JETPs could evolve and contribute to a broader strategy for supporting developing nations in their shift towards cleaner energy sources.


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