South African Climate Finance Landscape 2023 report released

  • The South African Climate Finance Landscape 2023 report seeks to map climate finance investment in South Africa by way of tracking project-level investments thereby identifying sources and intermediaries of climate finance; financial instruments used; uses of climate finance; and ultimately which sectors benefit from climate finance flows in South Africa.
  • The report was prepared for the Presidential Climate Commission by the Climate Policy Initiative and GreenCape.

The report aims to provide clear and consistent information on current climate finance investments in South Africa to help highlight existing gaps, spotlight opportunities, and provide a foundation to mobilise and scale climate finance in South Africa. The data informing the report was sourced from both international and domestic sources and falls within calendar years 2019, 2020 and 2021. The data tracks primary capital investment directed toward low-carbon and climate-resilient development interventions with direct or indirect greenhouse gas mitigation or adaptation benefits.

Main takeaways:

  • The private sector provided 86% of all climate finance to South Africa (R113 billion p.a.), while public actors provided the remaining 14% (R18 billion p.a.).
  • 75% of finance is market-rate debt with a cost of capital between 10% and 12%. The remaining climate finance was delivered via equity (18%), government budgets (4%), concessional debt (2%), and grants (1%).
  • Grants dropped from an annual average of R3.5 billion (5%) in 2017/18 to an annual average of R993 million (1%) per year in 2019-21. The was also a decrease in concessional debt, and in the blending ratio for that debt.

Link to the full report here:  PCC-SA-CLIMATE-FINANCE-LANDSCAPE

Author: Bryan Groenendaal

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Green Building Africa promotes the need for net carbon zero buildings and cities in Africa. We are fiercely independent and encourage outlying thinkers to contribute to the #netcarbonzero movement. Climate change is upon us and now is the time to react in a more diverse and broader approach to sustainability in the built environment. We challenge architects, property developers, urban planners, renewable energy professionals and green building specialists. We also challenge the funding houses and regulators and the role they play in facilitating investment into green projects. Lastly, we explore and investigate new technology and real-time data to speed up the journey in realising a net carbon zero environment for our children.

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