A spokesperson for the US Treasury said that this move aligns with an executive order signed by President Donald Trump, which stated that the initiative "does not reflect America's values or its contributions to achieving economic and environmental goals."

JETP was first announced at COP26 in Glasgow, the UK, in 2021. South Africa, Indonesia, Vietnam, and Senegal were subsequently announced as the first beneficiaries of loans, financial guarantees and grants to move away from coal.

Washington has cut foreign aid and supported the development of fossil fuels since President Trump returned to the White House in January.