In an effort to combat climate change, South Africa’s cabinet will be deliberating whether to include the Netherlands and Denmark in an $8.5 billion climate finance pact with some of the world’s richest nations, Bloomberg has reported.
It comes as the country plans to expand the so-called Just Energy Transition Partnership, which could give momentum to the implementation of an agreement that’s been bogged down by delays and opposition from South African coal miners since it was announced almost two years ago at the COP26 climate summit in Glasgow.
The king and queen of the Netherlands are currently in South Africa, accompanied by cabinet ministers and business leaders from that country.
This potential collaboration aims to leverage the expertise of these European countries in renewable energy and sustainable development to bolster South Africa’s own efforts to combat environmental challenges.
The climate pact is politically perilous for Ramaphosa.
“The matter will be tabled before cabinet, and thereafter a decision will be communicated,” said Vincent Magwenya, South African President Cyril Ramaphosa’s spokesman. He declined to comment further.
The pact with the UK, US, France, Germany, and the European Union to help South Africa reduce its reliance on coal, which is used to generate more than 80% of its electricity, is seen as a blueprint for deals agreed later with other coal-dependent developing nations such as Indonesia and Vietnam. South Africa is the world’s 14th-largest source of climate-warming greenhouse gases.
The proposed climate pact, initiated by South Africa, seeks to accelerate the country’s transition to a low-carbon economy and reduce greenhouse gas emissions. By engaging with the Netherlands and Denmark, known for their advancements in renewable energy technologies, South Africa hopes to benefit from their knowledge and experience in implementing effective climate solutions.
The proposal to include the Netherlands and Denmark was made by the existing pact signatories several months ago, people familiar with the situation said. Their admission would ease earlier tensions between rich nations aiming to bolster their climate credentials, as the JETP funding partners group had initially been confined to a group of seven members, they said.
It’s unclear what the Netherlands and Denmark would contribute to the pact. Both countries have already invested in helping South Africa transition away from fossil fuels and have courted the country diplomatically in recent months.
In an interview in September, Dan Jorgensen, Denmark’s climate minister, said talks were being held with South Africa over participation in its energy transition and that his country had allocated “a very big amount” of funding to help support it. He didn’t specify if Denmark wanted to enter the JETP.
Mark Rutte, the prime minister of the Netherlands, and Mette Frederiksen, his Danish counterpart, visited South Africa in June, accompanied by business delegations. During that visit, state-backed Dutch firms pledged backing for the creation of a $1 billion green hydrogen fund in South Africa and a €300 million ($317 million) public infrastructure fund to invest in water and energy.
Green Energy
Frederiksen said her country would contribute about 3.2 billion rand ($171 million) to green energy projects in South Africa. Denmark has also been advising Pretoria on wind energy and the creation of an electricity market, while the Netherlands has funded a project to replace jobs at a coal-fired power plant with an agriculture initiative.
