THE US has withdrawn from a climate agreement where rich nations have pledged billions of dollars to help a small group of developing countries switch from coal to green energy, one of the participating countries said today.

South Africa said it had received notice that the US had withdrawn from the International Partners Group (IPG), a bloc of rich countries that has pledged money for energy transitions in South Africa, Indonesia, Vietnam and Senegal.

The bloc includes the European Union, Britain, Germany, France, Italy, Canada, Japan, Norway and Denmark.

The US had declared, effective immediately, its withdrawal from the agreements in South Africa, Indonesia and Vietnam, said Chrispin Phiri, a spokesperson for the South African Foreign Ministry.

The US had not pledged money for Senegal’s energy transition, although other members of the IPG did.

It’s another move by US President Donald Trump to take the US out of global climate pacts after he signed an executive order in January to withdraw from the landmark Paris climate agreement that brings countries together to combat global warming.

That agreement is aimed at limiting long-term global warming to 1.5°C above pre-industrial levels or, failing that, keeping temperatures at least well below 2°C above pre-industrial levels.

The US withdrawal from the IPG meant South Africa would lose more than $1 billion (£774 million) in future investment pledges from the US to gradually decommission its polluting coal-fired power stations in favour of renewable energy, according to a statement from the office of South African President Cyril Ramaphosa.

Mr Phiri said grant projects in South Africa that were previously funded “and in planning or implementation phases have been cancelled.”

The US had cancelled future funding for Indonesia’s energy transition programme that had been provided through the US aid agency and the Department of Energy, said Fabby Tumiwa, executive director of the Institute for Essential Services Reform, a climate-focused non-profit.

Officials said the other rich countries were still part of the agreements and they would continue to provide support.

“South Africa remains steadfast in its commitment to achieving a just and equitable energy transition,” said Joanne Yawitch, the head of the Just Energy Transition Project Management Unit in South Africa. “All other IPG partners remain firmly committed.”

South Africa was the first country to sign up to a so-called just energy transition agreement at the United Nations climate conference in 2021.

It said it had received $13.8bn (£10.6bn) in pledges before the US withdrawal. Indonesia and Vietnam signed their multibillion-dollar deals in 2022.

The agreements are meant to recognise that some developing countries are reliant on coal to keep their economies going. They don't have the money or the green energy capacity to swiftly change and need to convert more gradually.

South Africa, the most advanced economy in Africa, relies on coal for more than 80 per cent of its electricity supply. Nearly all of Indonesia’s energy needs are currently met by fossil fuels, with 60 per cent coming from coal.

South Africa, Indonesia and Vietnam are all among the world’s top 20 emitters of greenhouse gases, according to ClimateWatch, which compiles data on climate change.