The Green Fund aims to provide catalytic finance to facilitate investment in green initiatives which will support poverty reduction and job creation. The Fund will only support initiatives which would not have been implemented without its support. The Green Fund is additional and complementary to fiscal allocations supporting the transitioning of the South African economy to a low-carbon, resource efficient and climate resilient growth path.
The Government of South Africa through the Department of Environmental Affairs (DEA) has set up a Green Fund to support the transition to a low carbon, resource efficient and climate resilient development path delivering high impact economic, environmental and social benefits. The allocation of R800m represents the initial resources available for disbursement by the Green Fund. The DEA has appointed the Development Bank of Southern Africa (DBSA) as the implementing agent of the Green Fund.
Due to its focus on innovative projects, unless a strong case is made for the coverage of a funding or financing gap, the Green Fund will not support such projects. The Green Fund will respond to market weaknesses currently hampering South Africa’s 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
- Attracting additional resources to support South Africa’s green economy development
The Green Fund has identified three thematic funding windows which will contribute to the transition to green economy. Local government, through public sector procurement and alignment of spending on infrastructure and services, with environment performance indicators, can play a significant role in generating the demand for green products and services. The vision of the GCT window is to strive for well run, compact and efficient cities and towns that deliver essential services to their residents, utilizing available natural resources efficiently and sustainably.
Focus areas are as follows:
- Sustainable transport
- Sustainable Waste management & recycling
- Renewable energy, including off grid and mini grid
- Sustainable water management
- Energy Efficiency & Demand Side Management
- Sustainable human settlements, the built environment and green buildings
- Ecosystem services
Eligible applicants: this window is open to proposals from municipalities, municipal entities, suppliers to municipalities and small and medium enterprises. For private sector applicants, confirmation of support from municipality must be provided in the application.
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