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G7 JETP plans hit global snags
- 2 months ago (2024-09-25)
- David Flin
The Just Energy Transition Partnership (JTP), a G7-backed funding initiative to help developing nations cut carbon emissions has hit a number of snags around the world.
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South Africa
South Africa was the first nation to reach a deal on a JETP in 2021, a $8.5 billion plan to help the country deliver ambitious emissions reductions by 2030. The funding was due to be invested in renewable electricity, low-emissions transport, and green hydrogen.
However, South Africa has said that it will not meet its 2030 targets, and will instead prioritise addressing its power blackout problems, and will delay decommissioning of its coal-fired power plants.
Indonesia
The largest JETP financing grant was for $20 billion to Indonesia. This was to enable Indonesia to sharply reduce its annual carbon emissions and increased the share of renewable energy in its power mix from 12 per cent in 2022 to 44 per cent by 2030.
However, disbursement of the funds has been minimal, with less than $1.5 billion in ongoing projects funds by grants and technical assistance.
Vietnam
Vietnam was the third country to secure JETP funding, receiving a promise for $15.5 billion in late 2022. This funding was to help it to start reducing greenhouse gas emissions from its power sector by 2030, earlier than a projected 2035.
Vietnam announced its plan to investment the JETP grants at COP28 in Dubai in 2023. However, as of July 2024, its Ministry of Natural Resources and Environment has yet to release funds to 220 identified investment projects.
Senegal
Senegal received $2.8 billion in funding in June 2023, mainly from EU countries. Under the deal, Senegal will increase the share of renewables in its energy mix from 29 per cent in 2022 to 40 per cent by 2030.
Senegal has yet to release an investment plan.