JETPs (LINGO Incentives)

JETPs are financial collaborations between Global North and Global South nations. JETP processes are currently underway in South Africa, Vietnam, Indonesia and Senegal. Originally designed to support the transition away from coal, Senegal’s JETP now extends to gas-dependent countries, though the government has assured that extraction of its fossil gas resources will not be targeted by the initiative. The contributing nations, forming the International Partnership Group, actively seek to leverage their investments by engaging with multilateral development banks, the private sector, sovereign wealth funds, and philanthropic foundations. 

The first JETP, announced at COP26 in 2021, was an $8.5 billion package from the EU, US, UK, Germany, and France to support South Africa’s energy transition. Three years later, the Just Energy Transition Investment Plan includes $329.7 million, with 4% in grants and the majority as concessional loans. As of now, coal plant closures in South Africa have been delayed due to the country’s unreliable electricity supply, resulting in rolling blackouts known as “load-shedding”.

Resources :

• The Rockefeller Foundation (2024) Scaling the JETP Model – Prospects and Pathways for Action Report, February (2024)
•  Lehmann-Grube, Valodia, Taylor & Phalatse (2024) What happened to the Just Energy Transition grant funding? Research News, March 2024