Denmark and the Netherlands are reportedly in discussions to join South Africa's historic $8.5 billion climate finance pact. According to anonymous sources familiar with the matter, the prime ministers of Denmark and the Netherlands are set to visit South Africa next week, with an announcement regarding the "just energy transition and green hydrogen" planned for June 20.
The Just Energy Transition Partnership is an initiative between South Africa, the US, UK, France, Germany, and the European Union that aims to help South Africa cut down on its reliance on coal, which is currently used to generate more than 80% of the country's electricity. The partnership also aims to mitigate the impact of job losses on communities that depend on the coal industry. All participating countries have made a financial commitment to the total amount.
The pact was first announced during the 2021 COP26 international climate summit in Glasgow and is seen as a blueprint for similar agreements with other developing nations that are heavily reliant on coal, such as Indonesia and Vietnam. South Africa is currently the world's 14th-largest source of greenhouse gases that contribute to climate change.
While Vincent Magwenya, a spokesperson for South African President Cyril Ramaphosa, declined to comment, the Dutch embassy released a statement indicating the country's intent to make a meaningful contribution to South Africa's just energy transition. The extent and form of this contribution will be announced during the June 20 event. The Danish Prime Minister's office did not comment on the matter.