COUNTRY READINESS INITIATIVES:

South Africa
August 2014 1
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What woul !"#i$g r#a%& '#a$ for SA(
SA Climate Change Response Strategy clear investment
plan for climate action
Coherent vision for government and the private sector
Understanding the role of public/private sector finance is
needed at different stages of programme development
Goal : Clear implementation and resource mobilisation
strategy e.g. an enabling financial system that has
mainstreamed climate into its decision and ris
management processes ! origination of programmes to
facilitate the transition
Glo"al E$)iro$'#$t *acilit% :
SA #+,#ri#$c#
DBSA is the first DFI to be accredited by G"F
Accreditation process too 2#$ years
DBSA laced understanding of G"F operational re%uirements# and G"F did not
understand DBSA&s procedures.
A site visit by G"F at the start of the process could have cleared up many
misunderstandings
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Glo"al E$)iro$'#$t *acilit% : -2.
D/SA co',arati)# a)a$tag#s
DBSA&s trac record in infrastructure development
Ability to leverage private sector finance
Ability to incorporate capacity building and technical
assistance into pro(ects
"stablished partnerships )ith government and private sector
that provide complementary sills for management of
pro(ects
"*perience in climate mitigation through leveraging finance
for IPP program
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Glo"al E$)iro$'#$t *acilit% :
D/SA ,ro,os# acti)iti#s
DBSA vie) G"F as ey contributor to innovative and ris sharing approaches in pro(ects aligned to
G"F focal areas.
Green Fund can e*pand to other thematic areas aligned )ith G"F# eg )aste management# land
degradation# rene)able and energy efficiency and biodiversity
DBSA to achieve a competitive advantage in leveraging Green Fund funding to transition South Africa
to a lo) carbon# green economy# thus contributing to the generation of global environmental
benefits through G"F funding.
Accreditation provided opportunity to revie) DBSA&s fiduciary and environmental and social
safeguards against G"F standards. Partnership )ith G"F ensures DBSA maintains international best
practice standards
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Glo"al E$)iro$'#$t *acilit% :
D/SA ,ro,os# acti)iti#s -2.
"*pectations of innovative use of G"F grants
Some grant funding may be used as a revolving fund )ith lo) interest
rates.
DBSA )ill still disburse grants for ey G"F focal areas : climate change and
biodiversity
Pilot pro(ect : , -unicipal Summaries. critical biodiversity information
-unicipalities to use this information for cli'at# ,roofi$g of
i$frastructur#
Fit DBSA&s infrastructure mandate for municipalities
Funding also for ecological infrastructure reduce spending on
engineering infrastructure ! rural development
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Th# )alu# of acc#ss to i$t#r$atio$al cli'at# fu$s for
#)#lo,i$g cou$tri#s
Benefits of G"F funding for South Africa :
Improved funding systems )ithin institutions
Create ne) financial products and services for climate action 0using
G"F funds innovatively1
Co2financing opportunities to enable the shift to ,business
unusual.
Ris reduction in terms of using 100% o)n funds vs. co2financing
0po)er of the e*ample and learning e*periences1
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Co$si#ratio$s for #'#rgi$g fu$s a$ faciliti#s
Ability to use the international funds to create enabling conditions 0e.g taing IPP to other
sectors1
SA4BI accredited )ith Adaptation Fund 2 ability to identify viable pro(ects through
community involvement 2 support G"F pro(ects
Use of these funds in strategic conte*t e.g. a country has to have a clear plan of ho) access
enables them to advance pro(ect implementation . SA has US 5 $$0 billion assets under
management by long term insurers. 6o) can GCF# AF and G"F leverage these funds7
Direct access in terms of U4FCCC negotiations implies significant shifts in recipient attitudes
to finance. DBSA to use G"F effectively and innovatively to drive the transition to climate
resilience.
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Glo"al Cli'at# *u$ has to co$)#rt #cisio$s i$to i$)#st'#$t
r#aliti#s
10 Rac# agai$st ti'# for ,vulnerable countries.
20 1o"ili2i$g re%uired resources ensuring predictability
'. "nabling cou$tr% ow$#rshi, ne) models needed for
approval of interventions7
+. "nabling ir#ct acc#ss are standards and safeguards
enablers or disablers7
$. Driving co$)#rg#$c# sustainable development# trade 9
financial regulation
/. Achieving scal# scenario based funding
3. Driving i',act at reduced transaction costs
8. Achieving coh#sio$ with other climate support measures
:
GC* to #al with )ari# local circu'sta$c#s
The GCF )ill have to contend )ith and not duplicate the follo)ing:
Poor cohesion bet)een funders )ith differences in standards and ob(ectives
Fragmented and unreali;ed replication
<o) impact# high transaction costs
GCF must leverage e*isting efforts in climate finance
Competition for a strong program many domestic financiers
Support measures do not readily deliver sustainable pro(ect pipelines
Several ,readiness. programs on offer need for cooperation
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Cr#ati$g ca,acit% withi$ D#)#lo,i$g Cou$tri#s to 'a+i'i2#
i',l#'#$tatio$ 3 #li)#r%
Kno)ledge gaps e*ist at various levels fragmentation and confusion
Achieving desired impact relative to GCF ob(ectives
Striing a balance bet)een country o)ned vs. partner driven
Capacitating the different access modalities of the GCF cooperation vs.
gateeeping perspectives
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Co$clusio$
,Readiness. guided by Climate Strategy
G"F provides e*iting ne) opportunities for climate change
investment
Adaptation Fund to support G"F pro(ects
GCF ob(ectives must become realities 9 overcome varied local
circumstances
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THANK YOU