The US has backed out of the Just Energy Transition Partnerships. Southeast Asia should double down - Lowy Institute
Published February 03, 2026
The US Withdraws from Just Energy Transition Partnerships: Implications for Southeast Asia
The recent announcement that the United States has decided to withdraw from the Just Energy Transition Partnerships (JETPs) has raised significant concerns regarding the future of energy transition efforts in Southeast Asia. The JETPs were initially designed to facilitate a just transition away from fossil fuels, providing financial and technical support to countries aiming to shift toward renewable energy sources. The withdrawal of the US from this initiative could have far-reaching implications for the region, which is already grappling with the challenges of climate change and energy security.
Background on Just Energy Transition Partnerships
Established to address the urgent need for climate action, JETPs were launched to support developing nations in their transition from coal and other fossil fuels to cleaner energy alternatives. The partnerships aimed to mobilize financial resources, technical expertise, and capacity-building initiatives to ensure that the transition is equitable and just for all stakeholders involved. This initiative was particularly focused on countries that are heavily reliant on fossil fuels for their energy needs, including several in Southeast Asia.
The partnerships were seen as a critical step towards achieving the goals set out in the Paris Agreement, which aims to limit global warming to well below 2 degrees Celsius. By providing support to countries in their transition efforts, JETPs were intended to help mitigate the adverse impacts of climate change while promoting sustainable development.
The US Withdrawal: A Setback for Southeast Asia
The US's decision to back out of the JETPs has been met with disappointment by many stakeholders in Southeast Asia. The US was expected to play a pivotal role in providing financial assistance and technical support to countries in the region, particularly those with high levels of coal dependency. The withdrawal raises questions about the future of these partnerships and the commitment of other nations to fill the void left by the US.
Countries in Southeast Asia, such as Indonesia, Vietnam, and the Philippines, have been at the forefront of efforts to transition to renewable energy. However, these nations face numerous challenges, including a lack of financial resources, technological expertise, and political will. The absence of US support could hinder progress in these areas, making it even more difficult for these countries to achieve their energy transition goals.
Regional Responses and Opportunities
In light of the US withdrawal, Southeast Asian countries must double down on their commitment to energy transition and seek alternative sources of support. Regional cooperation will be essential in addressing the challenges posed by the transition. Countries can work together to share best practices, pool resources, and develop joint initiatives that promote renewable energy development.
One potential avenue for collaboration is through the Association of Southeast Asian Nations (ASEAN). As a regional bloc, ASEAN can play a crucial role in coordinating efforts to transition to cleaner energy sources. By leveraging the collective strengths of its member states, ASEAN can create a more resilient and sustainable energy future for the region.
Engaging with Other Global Partners
In addition to regional cooperation, Southeast Asian nations should actively seek partnerships with other countries and international organizations that are committed to supporting energy transitions. Countries such as Germany, Canada, and the European Union have demonstrated a strong commitment to climate action and may be willing to provide the necessary support to Southeast Asia.
Furthermore, multilateral development banks and financial institutions can play a significant role in financing renewable energy projects in the region. By tapping into these resources, Southeast Asian countries can accelerate their energy transition efforts and reduce their reliance on fossil fuels.
Investing in Renewable Energy Technologies
To successfully transition to cleaner energy sources, Southeast Asian countries must invest in renewable energy technologies. This includes solar, wind, hydro, and geothermal energy, which have significant potential in the region. By prioritizing investments in these technologies, countries can create a more diversified and sustainable energy mix.
In recent years, several Southeast Asian nations have made strides in expanding their renewable energy capacities. For instance, Vietnam has emerged as a leader in solar energy deployment, while Indonesia is exploring geothermal energy potential. These efforts highlight the region's commitment to transitioning away from fossil fuels and embracing cleaner energy alternatives.
Addressing Social and Economic Impacts
As countries in Southeast Asia move forward with their energy transition efforts, it is crucial to address the social and economic impacts of this transition. The shift away from fossil fuels has the potential to disrupt communities that rely on coal and other fossil fuel industries for their livelihoods. Ensuring a just transition means providing support for affected workers and communities, including retraining programs and social safety nets.
Governments must engage with local communities and stakeholders to develop comprehensive strategies that address these challenges. By fostering inclusive dialogue and collaboration, Southeast Asian nations can ensure that the benefits of the energy transition are shared equitably among all members of society.
The Path Forward for Southeast Asia
The withdrawal of the US from the Just Energy Transition Partnerships presents both challenges and opportunities for Southeast Asia. While the loss of US support may complicate efforts to transition to renewable energy, it also underscores the importance of regional cooperation and alternative partnerships. By doubling down on their commitment to energy transition, Southeast Asian countries can forge a path toward a more sustainable and resilient energy future.
As the region navigates the complexities of this transition, it is essential to prioritize investments in renewable energy technologies, engage with global partners, and address the social and economic impacts of the shift away from fossil fuels. By taking these steps, Southeast Asia can continue to make progress in its energy transition efforts, ensuring a cleaner and more sustainable future for generations to come.
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