LED Programme: The Green Fund
The Government of South Africa, through the Department of Environmental Affairs (DEA) has set aside R800 million to establish the Green Fund. This allocation 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. A Green Fund Management Committee comprising representatives of the DEA, the DBSA and the National Treasury provide the direction and make final decisions on applications made to the Green Fund.
Programme Background & Rationale
The Green Fund is a unique, newly established national fund that seeks to support green initiatives to assist South Africa’s transition to a low carbon, resource efficient and climate resilient development path delivering high impact economic, environmental and social benefits.
The objective of the Green Fund is to lay the basis for the South African economy to make a transition to a low carbon, resource efficient and climate resilient development path delivering high impact economic, environmental and social benefits. The Green Fund aims to provide catalytic finance to facilitate investment in green initiatives that will support South Africa’s transition towards a green economy.
Importantly, the Fund will only support initiatives which would not have been implemented without its support. The Green Fund is additional and complementary to existing fiscal allocations supporting the transitioning of the South African economy to a low-carbon, resource efficient and climate resilient growth path. 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, and
- Attracting additional resources to support South Africa’s green economy development.
The Green Fund provides support through three funding Windows. The focus areas and eligibility criteria for each window is different and informed by key national policies. These policies include, the National Strategy for Sustainable Development and Action Plan, the New Growth Path and The National Development Plan.
The second request for proposals closed in March 2013. Further calls will be announced via the programme website