The Just Energy Transition Partnerships (JETPs) are a novel approach to intensifying ongoing efforts toward carbon neutrality, combining country-led strategies to decarbonize the energy sector and addressing development priorities resulting from the ensuing structural transformation with focused, long-term, and plurilateral partnerships. The launches of the $8.5 billion JETP for South Africa in 2021 and the $20.0 billion JETP for Indonesia in 2022 provide momentum for this effort. However, the legacies of coal-based power and modest renewable energy deployment in both countries present key challenges in the areas of political economy, policy alignment, finance, and supply chain development.
This paper consolidates available information about these two JETPs and analyzes the approaches taken by South Africa and Indonesia, with the aim of providing a thought framework for these JETPs. It seeks to identify risks and gaps that could obstruct these JETPs’ advancement and to assess whether these JETPs can serve as blueprints for other countries looking to accelerate their move away from coal. Further, this paper highlights complementary action that could enhance the effectiveness of these JETPs and guide the development of similar partnerships in the future. The paper finds that while the JETPs for South Africa and Indonesia appear to deliver a blueprint for moving away from coal in their respective contexts, barriers, risks, and gaps call into question whether the targets can be delivered at the planned pace and scale.
