Just Energy Transition Partnerships at Risk in Indonesia and Vietnam

Abstract

Reducing global greenhouse gas emissions to net zero is a major challenge, particularly in coal-dependent emerging economies. Just Energy Transition Partnerships (JETPs) have been promoted as a novel mechanism to accelerate coal phase down. Yet, implementation has stalled despite strong political commitments. Drawing on 30 stakeholder interviews with government, civil society and international organizations in Indonesia and Vietnam, this policy note examines why JETP implementation has stalled. We identify a core misalignment between recipient country expectations for early concessional finance and international partners’ emphasis on reform conditionality. Low grant shares, slow disbursement and weakened trust—exacerbated by recent geopolitical shifts, including the withdrawal of the United States from JETPs in 2025—have further constrained progress. We argue that re-energizing JETPs requires an explicit sequencing strategy that front loads concessional finance and prioritizes politically and economically feasible pioneer projects delivering clear emissions reductions and development co-benefits. Such an approach can rebuild confidence, enable risk sharing and create conditions for boosting energy transition. Show more