Climate Finance Inflows to South

Africa (Mitigation versus

adaptation)
28 November 2017
 Financing the Transition to a Low-carbon and
Climate Resilient Economy and Society
• The Climate Change Flagship Programmes, in section 8 of the National Climate
Change Response Policy (NCCRP) are South Africa’s response to implementing
climate action at a national scale
• They provide the greatest opportunity for high impact climate action in the near to
medium term, responding to the three key challenges facing South Africa and
other countries as global efforts to address climate change intensify:
1) Demonstrating the course of actions needed to respond to climate change effectively
and efficiently unlocking and realising significant social and economic benefits;
2) Attracting resources at the scale required to enable meaningful transformation, i.e. at
the scale that effectively limits atmospheric GHG emissions and/or enables adaptation to the
impacts of unavoidable climate change;
3) Igniting national-scale action at the speed required to respond to climate change, i.e.
limiting GHG emissions and/or enabling adaptation change with the necessary urgency
• They provide the greatest opportunity for high impact climate action pre-2020
The Climate Change Flagship Programmes and
National Climate Change Response Policy
•National
“A set ofClimate
Near-term PriorityResponse
Change Flagship Policy • 2014-2019: NDP
Planning,
VisionPiloting
2030 and
Programmes will be implemented…These Investing (Outcome 10 Delivery
programmes will include both the Agreement)
scaling-up of existing climate change • Creation of an implementation framework
initiatives and new initiatives that are • Unblocking regulatory constraints
ready to come on-stream” • Testing concepts and ideas to determine if
these can be scaled up

• Front-runners in the transition, catalysing sector-wide transformation

• Build on existing expertise and experience of key sectors which have extensive
experience in implementing climate change relevant policies and measures
• Represent an important aspect of the practical implementation of the National
Climate Change Response Policy (NCCRP) and National Development Plan (NDP)
• Provides a coordination and consolidating structure for enable national-scale
implementation – providing the mechanism the implementation of projects or groups
of projects
 Climate Change Flagship Programmes and
South Africa’s Climate Change Response
South Africa’s Nationally
Determined Contribution to the
UNFCCC

South Africa’s GCF

Country Programme and
Investment Framework South Africa’s NDC to UNFCCC

CLIMATE CHANGE South Africa’s NAMA Portfolio

FLAGSHIP PROGRAMMES

National GCF Country Programme

South Africa’s Portfolio of
Nationally Appropriate
Mitigation Actions (NAMAs)
The Climate Change Flagship Programmes and
South Africa’s NDC
Climate
Climate Change
Finance Flagship
Programmes

• Economy-wide Financing
• Scale and Transformative Action
• Institutional Arrangements
• Monitoring and Evaluation

South Africa is in the final appraisal phase by NAMA Facility fund a National Energy
Efficiency in Public Infrastructure and Buildings Programme to be implemented in
2018 as part of the Energy Efficiency and Demand Management Flagship Programme
led by the Department of Energy and Department of Public Works
 Climate Change Flagship and the NDC
Investment & Implementation Preparation
High
1 Full-scale Deployment

Full Investment Market Refining &

2 Proposal & Detailing
Business Plan Refine Implementation/
optional
3 Full Feasibility Report operation Delivery Models
scenario
Implementation

Select Assessing viable

4 preferred
Readiness

Prefeasibility options project ideas for

Report preferred options
Define
5 project
Scoping Report potential
Project Criteria:
6 Concept Note
Generate Flagship
project ideas
Low Programme Fit &
Climate change
Impact
 Climate Change Investment & Implementation
Preparation Focus Areas

Programme Preparation Finance and Operationalise

and Support Implementation at Scale
Climate Change Flagship
Programmes

Leveraging Existing Public and

Private Finance Pools Integrate all Spheres of Government
Target Beneficiaries of Climate Change Flagship
Programmes Pipeline Development
Sector Role in Programme Implementation
• National, provincial and • Drive and coordinate programme development
local government • Anchor supply chains and stimulate demand at scale
• Incentive the supply of required services to meet
demand for low carbon/climate resilience

Enable Lead
• Private sector • Partner in programme conceptualization and
• Civil society implementation
• Beneficiaries as providers of relevant services
• Anchor supply chains and stimulate demand at scale
The Climate Change Flagship Programmes and
South Africa’s GCF Country Programme
• The Climate Change Flagship Programmes currently constitute the majority of South
Africa’s GCF country programme proposal pipeline.
• The Climate Change Flagship Programme team, in collaboration with the relevant lead
partners, is actively involved in the development of 9 funding proposals to the GCF

Diversion of Solid
National Public and
National Public Sector Waste from Landfills –
Private Sector Energy Embedded Renewable
Renewable Energy Alternative Waste
Efficiency Programme Energy Programme
Programme Management
Proposal
Technologies

National Land
Climate Resilient Credit Lines for Greening Higher
Restoration and
Agriculture Climate Resilient Education Residences
Rehabilitation
Programme Agriculture Programme
Programme
 South Africa’s Green Climate Fund Strategic
Investment Framework
• The purpose of this investment framework is to ensure that South Africa’s
GCF investments are aligned with national climate change priorities

Objective Strategic Approach Key Actions

• To ensure SA’s GCF • Describe and act on • Description of SA’s
portfolio is country what needs to be done priority climate change
owned and country to access the GCF actions
driven • Describe short term • Structured dialogue
(2018 -2020) and with accredited entities
medium term (post on SA’s priority climate
2020) investment GCF change actions
portfolio
Climate Change Flagship Programmes and GCF
Strategic Investment Framework
Agriculture, Food Energy Efficiency Disaster Risk
Carbon Capture and
Systems and Food and Energy Demand Reduction and
Storage
Security Management Management

Low Carbon, Climate

Resilient Built Low Carbon Climate
Land, Biodiversity
Health Environment, Resilient Spatial
and Ecosystems
Communities and Development
Human Settlements

Low Carbon, Climate Social Protection

Resilient Transport Renewable Energy Systems and Public Waste Management
Systems Works Programmes

Water Conservation
and Water Demand
Management
 Linking the GCF to National Climate Change
Response Priority Areas and Outcomes (1)
GCF Results Area National Climate Change Outcome Statement
Response Priority Area
Small‐, medium‐ and Renewable Energy • Widespread development, integration, use, and affordable
large‐scale access to South Africa’s abundant renewable energy (RE)
low‐emission power resources driving innovation; localisation of RE services and
generation technologies; energy security and economic growth
Waste Management • Accelerated investment in and implementation of large scale
Low‐emission energy
waste minimisation, recycling and composting of organic
access
waste and waste-to-energy opportunities
Carbon Capture and • Enhanced country readiness and capacity for full-scale
Storage (CCS) implementation of integrated CCS, realising opportunities
for the deployment of commercially oriented CCS activities
and technologies
Energy efficiency of Energy Efficiency and • Urgent, comprehensive and coordinated large scale
buildings and Energy Demand implementation of energy efficiency measures and
appliances Management technologies, across all sectors of South Africa’s economy
and society stimulating the establishment of inclusive and
Energy efficiency of
localised energy services and technologies
industrial processes
 Linking the GCF to National Climate Change
Response Priority Areas and Outcomes (2)
GCF Results Area National Climate Change Outcome Statement
Response Priority Area
Adaptation Social Protection Systems • Large scale implementation of climate-smart social
activities to reduce and Public Works protection systems which effectively integrate adaptation;
climate‐related Programmes mitigation; health and disaster risk reduction and
vulnerabilities management interventions
Water Conservation and • Urgent and large scale implementation of efficient water
Scaling up of
Water Demand systems, water storage and infrastructure coupled with
effective
Management prudent resource and demand management and; informed
community‐based
behavioural change
adaptation (CBA)
Disaster Risk Reduction and • Development and implementation of proactive, systematic
actions
Management and integrated approaches to disaster risk identification and
reduction and; strengthening disaster management and
recovery mechanisms to safeguard communities,
livelihoods and infrastructure
Health • Enhanced health infrastructure and services, integrated with
climate-orientated investments in agriculture, food security
and natural resource management
 Linking the GCF to National Climate Change
Response Priority Areas and Outcomes (3)
GCF Results Area National Climate Change Outcome Statement
Response Priority Area
Sustainable land use management Agriculture, Food Systems • Widespread and urgent establishment of
to support mitigation and and Food Security climate-smart agriculture, agro-processing
adaptation and food production systems, to enhance
productivity and resilience, at all scales of
Sustainable forest management to
production, successfully integrating a suite
support mitigation and adaptation
of sustainable agro-ecological practices
including afforestation and
and resource efficient approaches
reduction of forest degradation
Land, Oceans, Biodiversity • Large-scale investment in and expansion of
REDD+ implementation and Ecosystems the restoration and rehabilitation of South
Africa’s natural resource base; enhancing
Scaling up of effective
ecosystem integrity and resilience, the
community‐based adaptation
creation and enhancement of carbon sinks;
(CBA) actions
ecosystem-based adaptation approaches
and better management of marine
resources, fisheries and ecosystems
 Linking the GCF to National Climate Change
Response Priority Areas and Outcomes (4)
GCF Results National Climate Change Outcome Statement
Area Response Priority Area
Design and Low Carbon Climate • Efficient and integrated spatial planning and development to enhance
planning of Resilient Spatial resilience and resource efficiency; incorporating disaster risk reduction
cities to Development and preparedness; transit-oriented development; high density and
support multimodal approaches to land use; the protection and enhancement
mitigation of natural ecosystems and extensive green infrastructure networks
and Low Carbon, Climate • Resilient, low emissions and spatially efficient, rural, urban and coastal
adaptation Resilient Built communities, settlements and infrastructure incorporating a high
Environment, performance green built environment, green retrofits of existing
Communities and buildings, protecting and enhancing natural ecosystems and extensive
Settlements green infrastructure networks
Low‐emissio Low carbon, climate • Accessible and integrated transport systems that prioritise the use of
n transport resilient transport more efficient spatial design, transport networks and operations; low
systems emissions transport modes, vehicles, fuels, technology; non-motorised
transport; and climate-resilient infrastructure
Crosscutting Themes GCF Results Area
• Readiness and capacity building for adaptation and mitigation activities
• Supporting the coordination of public goods such as “knowledge hubs
UNFCCC FINANCIAL MECHANISMS

• Operating Entities of the Financial Mechanism

– Global Environment Facility

– Green Climate Fund

• Kyoto Protocol “Mechanism”

– Adaptation Fund (Revenue levy on CERs)

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 GLOBAL ENVIRONMENT FACILITY
• Capacity Building Programme to Implement South Africa's Climate National System
Life (US$ 1,100,000 - Co Financing US$ 2,289,065) (UNEP). To enhance human and
institutional capacity related to transparency in South Africa.

• Cities-IAP: Building a Resilient and Resource-efficient Johannesburg: Increased

Access to Urban Services and Improved Quality of (US$ 8,093,171 - Co-Financing US$
124,439,330) (Development Bank of Southern Africa) - The project will foster city level
resilience, resource efficiency, emission reductions and other co-benefits through area-
based pilot demonstrations, systems analysis (food), and improved integrated planning.

• Equity Fund for the Small Projects Independent Power Producer Procurement
Programme (non-grant) (DBSA) (US$15,000,000 - Co-Financing 147,006,333) -
Removing Financial Barriers in the Small Scale Renewable Energy Projects: Establishment
of an Equity Fund.

17
 GLOBAL ENVIRONMENT FACILITY
• Cleantech Programme for SMEs in South Africa (UNIDO) (US$ 1,990,000- Co-
Financing US$ 6,000,000) - Promotion of clean energy technology innovations and
innovative clean energy technology entrepreneurship in South Africa through Clean Energy
Technology Innovation Competition and Entrepreneurship Accelerator Programme

• Energy Efficient Low-carbon Transport (US$1,300,000 - Co-Financing US$ 7,115,000)

(UNIDO) - Promotion of the widespread use of electric vehicles (EVs) and non-motorized
transport (NMT), and the development of the necessary infrastructure, as part of the Green
Transport and Green Cities initiatives of South Africa.

• Wind Energy Project (SAWEP) – Phase II (US$ 3,554,250 - Co-Financing US$

35,667,936) - To assist government and industry stakeholders overcome strategic barriers
to the successful attainment of South Africa’s Integrated Resource Plan target of 3,320 MW
of wind power online by 2018/2019.

18
 GLOBAL ENVIRONMENT FACILITY
• “Improvement of industrial energy efficiency in South Africa through
mainstreaming the introduction of energy management systems and energy
systems optimization.” (UNIDO) (US$ 5,776,484) - Co-Financing US$ 38,439,000)
- To accelerate and expand the introduction of Energy Management Systems
(EnMS), Industrial Energy Systems Optimization (ESO), and the Energy
Management Standard ISO50001 within the South African industrial (and selected
commercial) context in order to realize increased investment in industrial energy
efficiency through the wide-scale adoption of the two methodologies and ISO 50001
under (i) enhanced institutional frameworks and regulatory environments, (ii)
technical and implementation assistance to industry and (iii) multi-level engineer,
technician and operator capacity building programmes.

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 GLOBAL ENVIRONMENT FACILITY
• Promoting Organic Waste-to-Energy and other Low-carbon Technologies in
Small and Medium-scale Enterprises (SMMEs): Accelerating Biogas Market
Development (UINDO) (US$ $ 4,222,110 - Co-Financing 41,884,888) - Promote
market based adoption of waste-to-energy and other low-carbon technologies in
small and medium scale industries of South Africa.

• Global: Preparation of Intended Nationally Determined Contribution (INDC) to

the 2015 Agreement under the United Nations Framework Convention on
Climate Change (UNFCCC) (UNEP) (US$ 220,000)

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ADAPTATION FUND

21
The Adaptation Fund (AF) was established by the Parties to the Kyoto Protocol
of the United Nations Framework Convention on Climate Change (UNFCCC), as
a mechanism to finance concrete adaptation projects and programmes in
developing country parties. The fund is capitalised mainly from a percentage
of proceeds of the Clean Development Mechanism. Future capitalisation in
discussion.

Adaptation Fund resources are accessed via Multilateral Implementing Entities

(MIEs) and National Implementing Entities (NIEs).

Initial country cap of USD10 million – but under revision

Direct Access = the Big Innovation of the Adaptation Fund

SANBI is South Africa’s National Implementing Entity (NIE) of the Adaptation

Fund
Building resilience in the
Greater uMngeni Catchment,
South Africa
(USD 7.5 million)

• Early warning systems that support

local communities and small scale
farmers
• Climate-proof settlements (built and
ecological infrastructure) and
informing settlement planning
• Climate resilient agriculture
• Lessons learnt
 uMngeni Resilience Project
High level updates as of October 2017
• An early warning system is now
providing farmers with localized
information.

• Plans are being developed to

rehabilitate degraded wetlands and
grasslands.

• Development of awareness raising

material on the projects and the
importance of adapting to climate
change.

• Continued support of Small scale

farmers in the project target sites
 Taking Adaptation to the Ground:
A Small Grants Facility for enabling
local level responses to climate change

(USD 2.5 million)

• Fund at least 12 small grants in
predetermined investment windows
** ADCI led study testing
• Approx. USD100 000 each
downscaling of climate models
• Provide ongoing support
Adaptation actions through 3 Investment Windows

Climate-smart Climate-resilient Climate-proof

Taking Adaptation to the Ground:
Agriculture Livelihoods Settlements
A Small Grants Facility for enabling
12 small grants in 2 target areas local levelat
valued responses
US$ 1.5 to climate
millionchange
(USD 2.5 million)
• Fund at least 12 small grants
• Approx. USD100 000 each
• Provide ongoing support
 Small Grants Facility
High level updates as of October 2017
• 11 projects approved projects (6 Nam/5 Mop)
• 8 SGR’s contracted
• 2 Pipeline projects in development

Interventions include:
• Raising climate resilient livestock
• Producing climate resilient rooibos tea
• Climate smart vegetable production
• Investments in water security
• Investments in saving schemes
• Investments in climate proof infrastructure

2931* direct project beneficiaries Enhancing Food Security with Climate-

Smart Agriculture - Khanimamda
12 Small Grant Facility Projects Approved to date!
 GREEN CLIMATE FUND
• Projects Approved:

– SCF Capital Solutions: Facility which uses supply chain financing techniques to
provide working capital to MSMEs involved in Renewable Energy and energy
efficiency projects. (US$ 12.2 million – DBSA has not been able to fulfil the
conditions and the project will need to be revised and re-submitted for GCF
Board approval)

– Catalyzing private sector investment for renewable energy and energy efficiency
projects across the developing world – European Investment Bank (Global
Project – 30 Countries) US$ 265 million (Potential US$ 10 - 15 million for South
Africa)

29
 GREEN CLIMATE FUND
• Readiness Funding

– Building SANBI’s capacity to develop GCF funding proposals and manage and
monitor GCF projects in South Africa (US$ 380,000)

• Projects submitted but not yet approved:

– SANBI (Adaptation – Enhanced Direct Access)

– LandBank (Mitigation – Mobilizing finance at scale) Approximately US$ 40 million

• Project Preparation Funding - PPF (up to max of US$ 1.5 million)

– Renewable Energy - Solar Photovoltaic (PV) Programmatic Solutions for the South
African Public Sector: Rail and Government Buildings Programme. (DBSA)

– Municipal Solid Waste Management Programme – (DBSA)

– Public Private Sector Energy Efficiency Programme (PPSEEP) (DBSA)

30
 GREEN CLIMATE FUND
• Concept Notes

– Credit Enhancement Mechanism for non-Sovereign Backed PPAs - To source a

first loss/guarantee facility, to be used as a credit support mechanism to support
non-sovereign guarantee backed PPAs for RE Projects in South Africa (DBSA –
US$ 253 million)

– Water Resilient programme with City of Cape Town (City of CT/ DBSA – US$ 77
million grant and US$ 38 million loan )

31
8 Strategic Results Areas
 MULTILTERAL DEVELOPMENT BANKS –
WORLD BANK CLEAN TECHNOLOGY FUND

• Eskom’s proposed 100 MW-capacity Upington Concentrated Solar Power (CSP)

plant, (CTF = US$ 250 million – World Bank US$ 200 million and African
Development Bank US$ 64.4 million)

• Development of a utility-scale wind power plant -- Phase 1 of Eskom’s Western

Cape Province Wind Energy Facility, consisting of a 100 MW wind farm -- as
well as support to pioneer private sector projects amounting to 100 MW new
generation capacity - (CTF US$ 100 million – World Bank US$ 50 million and
African Development Bank US$ 35.6 million)

33
 MULTILTERAL DEVELOPMENT BANKS –
WORLD BANK CLEAN TECHNOLOGY FUND
• South Africa Sustainable Energy Acceleration Program - CTF = US$ 77.5 million. This
component addresses use of CTF funds to support private sector megawatt scale sustainable
energy projects, including cogeneration energy efficiency projects and wind and solar renewable
energy projects. More specifically the program seeks to encourage transformation of the private
SE sector by establishing a series of direct, project level interventions in the wind, solar and
cogeneration sectors, all of which are nascent but offer significant potential in South Africa.

– Solar PV (US$ 42.5 million – African Development Bank)

– Solar PV (US$ 42.5 million – International Finance Corporation)

34
 MULTILTERAL DEVELOPMENT BANKS –
WORLD BANK CLEAN TECHNOLOGY FUND

• Scale up energy efficiency investments by catalyzing the expansion of bank

lending to the commercial and industrial sectors through lines of credit to
commercial banks, contingent financing to foster energy service companies (ESCOs),
and financial incentives or risk products to market leaders, such as large industrial
customers - CTF US$ 7.5 million. (International Finance Cooperation)

35
 BILATERAL FINANCE
Germany

•EPBP – Energy Efficiency in Public Building Programme (DoE, DPW, DEA) Euro 4,764,400
(2017 - 2021)

•Climate Support Programme (CSP) - Phase III 9 (DEA) Euro 16,000,000 (2017 - 2020)

Government of Flanders

•Third Country Support Strategy (CSP III) Euro 25 million (2017 - 2021) focusing on Climate
Change Adaptation

Norway

•Environmental Co-operation Programme Capacity Development Within the SA National

Inventory Unit NOK 5 million (Norwegian kroner five million) (2014 - 2017)

US

•LEDS US$ 15 million (2015-2020)

• 36
GREEN FUND

37
• Financial year
• Allocation

38
 Objectives of the Green Fund

• To support initiatives that will contribute to South Africa’s transition to a

• Financial year
low carbon, climate resilient, resource efficient development path.
• Allocation
• To address market weaknesses to transition to a green economy by:
 Promoting innovative and high impact green programmes and projects,
 Reinforcing climate policy objectives through green interventions,
 Building an evidence base for the expansion of the green economy, and
 Attracting additional resources to support South Africa’s green economy development.

• The Green Fund creates the space for catalytic financing

39
 Green Fund Projects
• A total of 55 Projects have been approved (31 Investment, 16 Research and Policy
development and 8 Capacity building)

• 31 investment projects have been approved:

– 12 projects are under implementation,
– 8 projects were withdrawn and 1 project was cancelled as the projects failed to meet terms and
conditions as per approval.
– 10 projects have been completed

• The total number of jobs created to date is 2 355 with the potential of increasing
this number if projects are upscaled

• Total allocation from National Treasury since April 2012 equaled R1.195 Billion

40
 Geographical spread of Investment Projects

• Financial year
• Allocation

41
 Geographic Overview
Investment Research and Policy Capacity Building
projects* Development
National 1 13 6
Western Cape (WC) 5 0 0
Free State (FS) 2 0 0
Kwa-Zulu Natal (KZN) 8 2 0
Gauteng (GP) 5 1 1
Eastern Cape (EC) 2 0 1
Mpumalanga (MP) 1 0 0
North West (NW) 1 0 0
Some investment projects are implemented in more than one province
Figures provided here reflect only active and completed investment projects
 Green Fund Investment Projects Under Implementation
Province Project and Objective Progress

eThekwini Municipality – Reforestation
(R36 940 000):
to replicate and upscale the achievements
KZN
of the on-going reforestation projects in
eThekwini Municipality
Project has exceeded targets with more than 800 000 trees
planted over three target areas
Over the next 20 years the forest is estimated to sequester an
estimate of 42 214tCO2.

SANPARKs (R3 635 200): Project completed

to assist communities living adjacent to
Agulhas National Park to plan & implement Through the extension of the protected area the last intact
lowland fynbos region in the region will be secured in
development initiatives using conservation perpetuity
for rural development - replication request Total area to be protected is 7 259.42 ha comprising 28 land
EC & WC for 2 sites owners

Tourism Investment Booklet was developed.

Identification of Strategic projects include the Karoo Corridor
Urban gardening project, Camdeboo township tourism
project and Karoo Corridor Cradock Gateway node project.

43
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress

CoCT Thermal Efficiency Low cost 4 619 units retrofitted to date – phase 1 complete It is
estimated that the project would curb carbon emissions by
Housing (R25 000 000): 5 000 tonnes
Installation of a number of energy
WC efficiency interventions (including Phase 2 commenced beginning of 2017 targeting 3 451
ceilings, energy efficient lighting and additional units
solar water heating) in low income
households
City of Tshwane –Energy Efficient The feasibility study revealed an associated cost saving per
building varying between R124 and R17 729 per annum.
Municipal Buildings (feasibility The payback period ranged between four years and 10.9
study) years for lighting. The potential energy savings ranged
(R780 000): between 124 kWh and 17 729kWh for newer and older
GP To replace existing lighting buildings respectively.
A select number of recommendations from the study are
equipment with energy efficient currently being implemented by the municipality.
lighting technologies

44
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective
Wildlands Conservation Trust (Msunduzi)
(R62 547 929):
expands an existing pilot initiative to
enable the economic transformation of 21
KZN
communities, through the establishment
of over 4400 wastepreneurs that will
collect and barter over 13 200 tons of
recycling in 4 years
Jobs in Waste for Youth (R67 370 240):
to address youth unemployment (50.3%
for 14-24 year olds, 29.5% for 25-35 year
olds). Waste is one of top sectors to
FS & NW generate jobs in South Africa in green
economy, improve service delivery and
address unemployment
Progress
The network of wastepreneurs stands at 7 815 spread in more
than 151 communities in three provinces. The network also
includes 82 schools and 11 charities.
154 Wastepreneur sorters have been recruited
The project has since January 2014 collected 26 263 907kg
recyclable waste has been collected. 19 256 tCO2e emissions
avoided to date
To date 1 243 youth have been recruited and trained (534
accredited training and 709 non-accredited), this number
exceeded the planned 777 (384 in NW and 393 in FS).
To date 754 employment opportunities created for youth
45
 Green Fund Investment Projects Under Implementation
Province Project and Objective Progress
Smarter Cities for a Greener Economy A system has been developed that is able to
(R15 000 000): measure metered servicers like the energy usage
research and development that will form the basis of
Technical pilot to be further developed and
a commercial smart city roll-out plan. The project will enhanced by Council for Scientific and Industrial
GP develop and validate a smart green platform (smart Research (CSIR)
infrastructure and analytics
which is based upon standards) in a real city
environment that allows for seamless and simple

46
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress
Farming the Wild: Wildlands Improved land use management of 15 100ha (11 600ha at Somkhanda and
Conservation Trust 3 500ha at Usuthu)
(R22 732 416):
A total of 1 227 game from different species have been introduced to the
land-use management model designed reserves (including wild dogs which will be closely monitored). This
to establish community greening excludes the population of giraffe, hyena and leopard that pre-existed.
KZN conservation initiatives along critical
climate change corridors of Total number of 86 people employed (69 permanent, 44 full time and 25
Somkhanda and Usuthu Gorge in part time). Permanent and semi-permanent jobs created for two
traditional Zululand. communities
Two training sessions for rangers have been undertaken in partnership with
Ezemvelo Wildlife – 64 people trained in total

Hammersdale Waste Beneficiation Assessment of the site design was finalised. The findings were that road
Centre access, storage, traffic and civil construction works required could not be
accommodated, without design modifications.
(R29 600 000):
community collection and recycling A new site measuring eight hectares has been identified adjacent to the
facility. Also establishment of a waste original site which was proving costly to develop. The Environmental
KZN beneficiation hub training facilities for Impact Assessment (EIA) has been approved as well as the waste license
a compressed earth block yard, e- (2015).
waste processing centre, a composting
yard and a plastic processing centre Construction of the HWBC is currently underway with civil works and
infrastructure development. Full project commissioning is expected in
March 2018.

47
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress
The re-SA Organic Waste Treatment to Energy Post initial approval of R25 million the
subsequent decision was to undertake a
Project feasibility study and to the decision to finance
(R 25 000 000): the construction of the facility was withdrawn.
develop a dry anaerobic digestion (AD) facility
that will process 25,000tpa of waste in order
KZN
to produce electricity. The project will involve
the manual separation and recovery of food-
wastes from existing mixed solid waste
streams throughout the regions of Durban and
northern Ballito
Operation Ox-pecker (R3 000 000): Capture and translocation guidelines for the ox-
Capture and relocation of the near extinct Ox- pecker are complete
The project has to date captured and relocated
KZN & MP pecker bird more than 126 Ox-peckers to identified sites in
Eastern Cape and Kwa Zulu Natal.

48
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress
Muthi Futhi (R 3 058 720): Approximately 500 000 indigenous seeds,
seedlings, and plants have been purchased and
assist the Trust to scale up to commercial propagated on site (27 Ha under cultivation)
level the cultivation and harvesting of four
selected traditional medicinal plants on a 25 The project to date employed 30 permanent
ha piece of land. Rural marginalized women employees of which 25 are female.
KZN will be supported, and the project will provide Traditional formulae and raw materials have
biodiversity benefiting business through been supplied to partner company which
sustainable farming, while at the same time manufactures and distributes retail products to
Dischem, independent pharmacies and cash and
reducing wild harvesting of indigenous carry chains nationally
plants.
Kevcon Belt (R12 300 000): New bonding layers have been developed
success rate was at 48% which is on par with
to demonstrate the environmental and mechanical fasteners.
GP financial benefits of the Kevlar belt so as to
enable wider scale rollout and adoption of Teams have been deployed to Northern Cape
the technology in South Africa and globally. and North West and have established
subsidiaries in these provinces.

49
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress
iShack (R17 000 000): Project has assisted households to realise an imputed saving
The project will provide solar power to of as much as 203 000KWh of energy – resultant CO2
citizens in informal settlements. This emissions could be as much as 322 tonnes per annum
initiative is a viable short term measure 1400 installations have been completed of a target of 1500.
WC to assist government to provide the poor Currently 1119 users are accessing the systemPay as you go
with basic services such as access to pilot is being implemented
electricity.
Free Basic electricity subsidy awarded to the programme by
Stellenbosch municipality.
Beema Bamboo (R162 000 000): A total of 800 000 shoots have been planted to date on
to provide a product that can create a approximately 320ha.
sustainable supply of biomass feedstock
Off-take agreement has been signed with SAPPI for purchase
by establishing, a tissue culture of green energy.
KZN laboratory for the propagation of the
bamboo shoots, a bamboo plantation
and a power plant that will use the
bamboo as a feedstock to generate
electricity.

50
 Green Fund Investment Projects Under Implementation
Project, Budget and
Province
Objective
Camdeboo Satellite Aquaculture
(R23 500 000):
focuses on offering an alternative to
canned pilchards, for which the SA
fishing quota has been reduced by
EC 80% since 2004. CSAP is a project
which will establish a preserved
freshwater fish industry in the
Eastern Cape to address fish supply
shortfalls
Shepherding Back biodiversity
(R7 500 000):
will focus on the sector to
mainstream biodiversity
conservation through control land
uses in the productive agricultural
landscapes. This will be achieved
WC
through mainstreaming biodiversity
conservation leading to a return to
human shepherding and the
development of a range of wildlife-
friendly produce i.e Fair Game.
Progress
To date a total 119 direct jobs and/or trainees have been appointed
and 142 indirect jobs have been created.
8 new economic entities created
4 prototypes created
Livestock (800 sheep and about 250 antelope) from land acquisition
to be used in training and production in the pilot
Currently 3 farms have been acquired with a total area of 22 000Ha
– all operations are predator friendly, therefore no killing of
predators is allowed
10 Farms workers and 2 farm managers have been appointed as
well as 2 research managers (Benefiting 9 households).
Content for training manuals have been sourced/finalized covering:
• Predator Management
• Cattle Management
• Herder and general farm management
Fair Game ethical brand has been developed
In the process of updating species lists and setting up continual
monitoring through direct counts and camera traps 51
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress
SEFA Botala Supply Chain Management 16 SMMEs in the green supply
R30 000 000 sector supported

Successful application to the

The objective of this project was to use supply chain Green Climate Fund for
National further funding
finance to solve the problem of lack of access to finance for
Small Medium and Micro Enterprises (SMMEs) in the green
economy.

IBERT - Biogas and Combined Heat and Power Facility (R5 Phase 1 of the biogas plant
634 000): has been completed and
commissioned. The plant is
feeding energy back into the
The project involves the treatment of biological waste clients network.
Gauteng
generated at an Abattoir near Cullinan to produce methane
and organic fertilizer through Anaerobic Digestion

52
 Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective Progress

Lukhanyiso Compressed Natural Gas (CNG) plant 90 Black economic empowerment

(R 60 000 000): farmers supported
Development of an anaerobic digester and production Co-Funding to the initiative:
compressed natural gas from pig and chicken farms Department of Rural Development
manure and napier gas. and Land Reform (DRDLR) = R61.1
million
FS Innovative farming Systems = R13.4
million

Construction work has commenced.

The project presents a business model
where farming, trading of bulk farming
products and biogas are well-
integrated and centralized

53
Green Fund Investment Projects Under Implementation
Province Project, Budget and Objective
Sustainable Affordable Housing
(R61 000 000):
Catalyze development of a local sustainable
affordable housing market through supporting the
construction of green housing stock
GP
Progress
630 Units development planned for
Belhar in Cape Town servicing lower
income households with an average
income of between R1500 to R7500
per month. Rentals per month range
from R750 to R2250.
Certification received from the Green
Buildings Council (GBSA) based on
green building principles and resource
efficiency
A further 309 units are planned for
construction in Gauteng
54
 Impact
Social Economic Environmental
• Job creation • Revenue streams – • Sustainable
• Empowerment increase investment Environmental
• Financial year
• Skills transfer/capacity flows Management
• Private sector • Greenhouse gas (GHG)
• Allocation
development
• Improvement of quality participation carbon emission
of life • Opportunity for reduction
Sustainability – medium • Reduction on energy
to long term consumption
• Reduction on energy • Diversion of waste from
consumption landfill
• Potential for leveraging
of additional
investments

55
 Research and Policy Development
No Objectives
To inform policy imperatives
A total of 16 research and policy
development initiatives have
been approved to a value of
R36 270 177 million to address
planning, technological,
financial and social innovations
The contracting of all 16
projects has been undertaken
and funds allocated to the
research & development
initiatives have been fully
disbursed.
Progress
All research and policy development projects were completed
The outcomes fall broadly under 4 themes:
•Groundwork for new industries in South Africa
•Technical and economic feasibility studies for the circular economy
•Tools and systems to inform decision making in green economy
investment
•Policy evaluations for green economy advancement
Research reports focused on several economic sectors:
Agriculture, energy, waste, biodiversity, wildlife, construction and
transport
Fund supported the development of 6 patents and 3 prototypes
through relevant research institutions
56
 Capacity Building Initiatives

• In order to assist in the transition to a green economy, the Green Fund

supports strategic capacity building initiatives.
• A total of 8 capacity development projects were approved to a value of
approximately R66 000 000.
• Capacity building project timeframes vary from one to three years.

57
 CLIMATE FINANCE INFLOWS OVERVIEW
CO-FINANCING Fiscal Support
GRANT LOANS US $ (2012-2017/18)
SOURCES (** calculated at current
US $ US $ (in-Cash and in-kind)
USD exchange rate of
(* estimate) R13.88/1 USD)

GEF 78,244,375 15,000,000 402,841,552

GCF 380,000

AF 9,937,737

CTF 442,500,000 2,706,800,000 (*)

Bilateral Fund 69,531,441

National
86,095,100 (**)
Green Fund

Total 158,093,553 457,500,000 3,109,641,552 (*) 86,095,100 (**)

58
 NEW AND ADDITIONAL SOURCES
OF CLIMATE FINANCES
• GCF (US$ 200 million approximately in the current resource mobilization period) and GCF (1st
Replenishment –Potentially in 2019)

• GEF 7 Replenishment (2018 – 2022)

• Bilateral Donors – This may however decline given the emerging view amongst Developed
Countries that SA is a “middle income” country. Furthermore Developed countries are also of the
opinion that so called “middle income” countries should be getting loans from multilateral funds
(GEF and GCF) rather than grants.

• Private Sector – (Focus on catalyzing and leveraging the private sector utilizing the multilateral
funds)

• New emerging Development Banks (Asia Infrastructure Bank)

• Potential New domestic financing facilities (Co-financed through multilateral financing)

• Philanthropic organization and Foundations

59
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