Making the Leap

This policy brief examines Just Energy Transition Partnerships (JETPs) in South Africa, Indonesia, India, Vietnam, and Senegal. It argues that these partnerships should facilitate a direct leapfrog from fossil fuels to renewable energy, rather than using fossil gas as a bridging fuel, which the author claims is economically risky, technically unnecessary, and climatically dangerous.

• Just Energy Transition Partnerships (JETPs) are a financing mechanism designed to help emerging economies transition from fossil energy to clean energy while addressing social consequences, such as job creation and training for affected workers. The first JETP was announced in 2021 for South Africa with USD 8.5 billion in financing from the UK, US, France, Germany, and the EU; subsequent partnerships were named for India, Indonesia, Senegal, and Vietnam.
• The document argues against using fossil gas as a 'bridging fuel' because gas prices are highly volatile and subject to geopolitical shocks, as evidenced by the 2022 Russian invasion of Ukraine which caused European gas prices to surge by 50% day-on-day and Asian LNG spot prices to rise by 30%. Transitioning directly to renewables would avoid this volatility and provide greater economic security.
• Renewable energy is presented as a cost-competitive and job-creating alternative to gas. In 2021, 62% of new renewables added had lower costs than the cheapest new fossil option. Furthermore, clean energy investments generate significantly more jobs per USD 1 million than fossil fuels; for example, in South Africa, clean energy generates 66 jobs compared to 33 for fossil fuels, and in Indonesia, 103 jobs compared to 22.
• The JETP countries possess substantial untapped renewable potential. South Africa could realistically supply 49% of its electricity mix from renewables by 2030. Indonesia's 2050 renewable target could be met by 2030 with USD 16 billion in investment. Vietnam has significant solar (4–5 kWh per m2) and wind potential (3,000 km of coastline), while India added a record 15.5 GW of new renewable capacity in FY 2021/2022.
• Renewable energy is better suited for expanding energy access in remote areas where grid extension is expensive. This is critical for JETP countries: 9.4 million people lacked electricity in South Africa (2020), 8.6 million in Indonesia, 13.8 million in India, and 5.1 million in Senegal (29.6% of the population).
• Investing in gas infrastructure risks creating stranded assets—investments that suffer premature write-downs or devaluation as the world decarbonizes. India already faces USD 103 billion in potentially stranded assets for gas pipelines alone, and gas power plants in India ran at only 23% capacity in FY 2019/2020.
• New gas infrastructure is incompatible with the 1.5°C Paris Agreement goal. Global gas power generation capacity must decrease by over 55% by 2035 compared to 2020 levels. Additionally, fossil gas contributes to climate change through methane leakage; methane is 82.5 times more potent than CO2 over a 20-year horizon, and 22% of global CO2 emissions result from fossil gas.

APA

Kramer, K. (2022). Making the Leap. International Institute for Sustainable Development. https://www.iisd.org/system/files/2022-11/just-energy-transition-partnerships.pdf

Chicago

Kramer, Katherine. Making the Leap. International Institute for Sustainable Development, 2022. https://www.iisd.org/system/files/2022-11/just-energy-transition-partnerships.pdf.

Wikipedia

{{cite report |last1=Kramer |first1=Katherine |title=Making the Leap |publisher=International Institute for Sustainable Development |date=November 2022 |url=https://www.iisd.org/system/files/2022-11/just-energy-transition-partnerships.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kramer2022making, author = {Kramer, Katherine}, title = {{Making the Leap}}, institution = {International Institute for Sustainable Development}, year = {2022}, month = nov, url = {https://www.iisd.org/system/files/2022-11/just-energy-transition-partnerships.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }