South Africa will seek private-sector participation in its recently established Climate Change Response Fund, as reported by Bloomberg on February 16. President Cyril Ramaphosa announced the foundation of the fund on February 8 when he was delivering a State of the Nation Address (SONA). The fund will support the development of early-warning systems and adaptation projects to improve the climate resilience of infrastructure, in response to the increased climate-related disasters that happened in South Africa in the past few years. Environment Minister Barbara Creecy affirmed that the government will provide support for the fund, while it also intends to attract other forms of finance from the private sector.

South Africa has grappled with several climate-related crises over the past few years, including wildfires in the Western Cape, floods in KwaZulu-Natal, and persistent drought in the Eastern Cape. In the face of increased extreme weather events, South Africa approved the Just Energy Transition Implementation Plan (JET IP) last November. The plan was introduced to guide the nation’s transition to a low-carbon economy by scaling up renewable energy sources, with nearly ZAR240bn (USD12.5bn) already committed to financing the plan. According to Creecy, the Climate Change Response Fund will complement the JET IP, which focuses on climate mitigation investments rather than adaptation. Furthermore, Creecy noted that the fund could serve as a new channel for climate financing directed towards developing countries, in addition to the loss and damage fund set up at COP28 last year.

Sources:

https://www.bloomberg.com/news/articles/2024-02-16/s-africa-to-include-private-sector-in-climate-response-fund

https://www.parliament.gov.za/news/government-establishes-climate-change-response-fund

https://www.engineeringnews.co.za/article/climate-change-response-fund-to-channel-resources-to-adaptation-early-warning-systems-creecy-2024-02-16#:~:text=Forestry%2C%20Fisheries%20and%20the%20Environment%20Minister%20Barbara%20Creecy%20reports%20that,adaptation%20projects%20to%20improve%20the

https://www.sanews.gov.za/south-africa/cabinet-approves-just-energy-transition-implementation-plan