Reflections on climate finance in South Africa

Transcription

1 Reflections on climate finance in South Africa Presenter: Chantal Naidoo (formerly Divisional Executive, Environmental Finance, Development Bank of Southern Africa )

2 NATIONAL SOURCES INTERNATIONAL SOURCES National Government (National Treasury) Provinces Investors Municipalities Development corporations Development World Bank GEF, adaptation fund, others mechanism Individual governments Investors National Government (Departments) Provinces Municipalities Development Development Corporations Individuals projects NGO s Source: Graphic Imbewu, 2011 Significant climate related commitments since 2003 with limited impact Poor alignment with national development priorities - deeply fragmented lacking in scale High transaction costs and no legacy Development partner reflections on challenges Capacity shortages to initiate, develop and take programmes and projects to financial close Lack of awareness of available resources Fragmentation and need for more coordination 2

3 Early market development agency arrangements with national development banks for demonstration and pilot projects Key driving force towards IPP implementation was deep collaboration between Dept of Energy and National Treasury (PPP Unit) despite single power utility challenges Domestic project manager to support national gov t - DBSA (National development bank) facilitated the enabling environment work streams regulatory, legal, technical and provided upfront funding commitments Extensive stakeholder engagements technical, procurement, tariff structure, legal docs including domestic banks & industry associations Localisation policies enabled large and small IPP programmes to ensure inclusive green growth Development partners from several countries provided strong technical & financial support different support mechanisms: access to experts, full time consultants, funding for technical support, funding lines for private and national banks Resource mobilisation SARI proposal migrating into specialist funds for renewable energy Installed: MW IPP process: Bid per kwh Potential: Gwh Current R/E bids : MW Early difficulties is a great mirror for future effectiveness Source: SA Dept of Energy,

4 National Climate Change White Paper & Green Economy policies Recognises all stakeholders in financial sector as co-implementer Climate finance coordination mechanism for tracking and resource mobilisation Technical working group on enabling financial sector Related stakeholder agreements and research: Green Accord and Green Jobs report National Treasury taking bold steps Existing market mechanisms for renewables and energy efficiency Cities Support Programme includes project prep funding for climate related projects National Green Fund - $100m from budget (est 2012) Work commissioned around climate finance & tracking within National Treasury National Treasury taking leading role on domestic climate finance issues Broader work around carbon tax to be implemented between 2015 and 2020 Significant interest in understanding barriers to finance Barriers to accessing climate finance by private sector (NBI) Barriers to municipalities developing and financing climate projects (TAU) Institutional investors 10% portfolio recommendation for ESG and CRISA Banking Association of South Africa Sustainable Finance Forum Issuance of 1 st Green Bond by IDC - $500m for renewables issued to GEPF 4

5 1. Owning the word soup - equity, pragmatism, trust, innovation, transparency, accountability 2. Take ownership important to have detailed programme, determine implementation path, map resources available and needed 3. Power of innovation relevant and responsive resources to bridge gaps 4. Power of the package finance, technology transfer, technical assistance 5. Power of the network right partners for the right programmes 6. Power of the pack calling the finance system to action 7. Matchmaking and role clarity risk & return matched to finance stakeholders 8. From commitment to action start now for business unusual 9. Lighthouse watch focusing on long road, not only short term 10. Remaining relevant Iterative processes to ensure maximum effectiveness 5

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