Just Energy Transition Partnerships: An inclusive climate finance approach?

The Just Energy Transition Partnerships (JETPs) - between G-7+ countries and South Africa (2021), Indonesia (2022), Viet Nam (2022), and Senegal (2023) - aim to expedite coal phase out, promote renewables and incentivize a just transition. Past climate finance initiatives often fell short in terms of recipient countries’ autonomy and their financing terms, transparency and objectives. Against this background, we ask: how can the JETPs initiate an inclusive and effective fossil fuel phase out and accelerate the energy transition? This study is the first comparative analysis of all four partnerships from a justice perspective. Drawing on institutional analysis, key policy documents and twenty-two expert interviews, we conclude that the JETPs: receive strong host country political support; involve a significant public finance pledge ($30.8 billion); prioritize country-owned investment plans; advance just transition frameworks; and spark vital discussions about the just energy transition. Nevertheless, the JETPs are inequitable because: of the International Partners Group’s financial intransparency; a lack of high-quality just transition finance (only 3-4 % grants); distorted and untransparent consultations; numerous financial conditionalities; and a privatization focus. Moreover, they exclude the Global South countries facing the biggest challenges in phasing out fossil fuels. For the JETPs to be inclusive and effective, involved governments need to disclose financial terms from the outset, improve financing terms, streamline the number of funding schemes, add localization criteria, halt new fossil fuel investments, conduct robust emission target modelling, include and inform affected communities more actively, enhance accountability and prioritize more community based small-scale projects.