Joint article on Just Energy Transition Partnerships (JETPs) from the UK, US, Italy, France, Canada and the European Commission.
The below joint article on Just Energy Transition Partnerships is signed from Minister for Development Anneliese Dodds (UK), Assistant Secretary of the Treasury for International Markets Alexia Latortue (US), State Secretary Jochen Flasbarth (Germany), Deputy Minister of the Environment and Energy Security Vannia Gava (Italy), Secretary of State for Francophonie and International Partnerships Thani Mohamed Soilihi (France) Climate Ambassador Catherine Stewart (Canada) and Director General Climate Action, Kurt Vandenberghe (European Commission).
Leaders from around the world were at COP29 last November, working together to tackle the biggest challenge of our lifetimes - climate change. Energy generates three quarters of the world's greenhouse gas (GHG) emissions. But there is promising news. Technological advances and economies of scale mean that clean energy options are now the cheapest sources of power, making a rapid clean energy transition not just possible, but common sense.
We know that standing still is not an option. The world is moving inexorably in the direction of low carbon energy. Increasing numbers of multinational companies are seeking to manufacture and operate using low carbon energy to power their industries. Increasingly, investments - and the good, decent jobs they create, including high quality jobs for women - will go where emissions are low. Without the investment in clean energy infrastructure now, countries that fail to adjust will be left behind as global markets demonstrate a preference for low carbon energy options.
We also know that public resources are not sufficient to address the magnitude of the energy transition challenge. We must mobilise private investment. This is reflected in the global climate finance goal agreed at COP29 - the New Collective Quantified Goal. Many renewable energy investments are commercially viable with the right enabling environment. This is why the International Partners Group (IPG- consisting of Canada, Denmark, France, Germany, Italy, Japan, Norway, The Netherlands, UK, US) of donor countries is working hand in hand with investors who are part of the Glasgow Financial Alliance for Net Zero (GFANZ). We are working to identify investible opportunities and support partner countries to put in the place the policies that can unlock opportunities at the scale needed.
An energy transition that reduces GHG emissions also helps achieve long-term energy security and fuels high-quality economic growth that will improve the lives of the world's poorest people. This is why we are engaging in Just Energy Transition Partnerships (JETPs) with countries that have set ambitious targets to accelerate their energy transitions, build up renewables, update and improve their grid networks, and implement country-led strategies to move away from fossil fuels in a way which supports inclusive growth. JETP are important tools to support the transition away from fossil fuels in line with the historic decision we made at COP28. The first JETP, with South Africa, was announced at COP26 in Glasgow. The others, with Indonesia, Viet Nam, and Senegal, followed quickly afterwards.
After launching these high-profile JETPs, we worked to identify the technical pathways for a just transition and implement the policies and financing that would deliver on ambitious targets. The level of reform needed to support a clean energy transition is significant. South Africa, as the first JETP country, is paving the way through its energy market reforms, demonstrating such change is achievable.
After meticulous planning, finance is now flowing. In Indonesia, $1 billion has been approved and a further $5.5 billion of financing for renewable energy infrastructure is in the pipeline. In South Africa, nearly $2 billion has been spent. Senegal is finalising an investment plan and has identified priority investments. Viet Nam is working with the IPG on a first tranche of investments valued at $1 billion.
Each JETP country has a unique energy system. Targeted market reforms, high-quality investments and interventions take time to deliver, and there is more work to be done. We know that partner countries need time to finalise and finesse energy transition plans, a process that rightly includes consulting citizens, civil society, and the private sector to arrive at a truly just transition. Domestic politics play a role in the speed at which decisions can be made. The complexity and uniqueness of energy transitions make it essential that countries have the space to get that right. Flexibility, agility and constant iteration - all with the country's stated ambition as the North Star - are needed.
We have always seen the four JETPs as demonstrating that a low carbon energy transition can be successfully achieved even in countries with heavy fossil fuel usage. And while we are not there yet, we are heading in the right direction thanks to the commitment and hard work of our partner countries.
Each JETP financing package includes a mix of loans and grants. Access to capital to on favourable terms is critical and should be strategically used to accelerate reform. We have done this to support "just" initiatives across agriculture, work force skills development, and small and medium enterprise development, providing alternatives to fossil fuel jobs.
The IPG is one half of a partnership. Without partner countries there simply would be no Just Energy Transition Partnerships. And investing now in emissions reduction in partner countries will also reduce the impact of climate change in our own countries in the future, in turn reducing the amount we must pay domestically to adapt to the impacts of climate change. It is a clear win-win proposition. And as with any partnership, communication, compromise, patience, and a commitment to unprecedented collaboration are essential for success on both sides. The rewards are worth it.
