South Africa is intensifying its efforts to finance a low-carbon and climate-resilient future, according to The South African Climate Finance Landscape 2025, a new technical report for the Presidential Climate Commission. Published by the Climate Policy Initiative (CPI) and GreenCape, with support from the Agence Française de Développement (AFD), the report provides the most comprehensive mapping of climate-related investments in the country. It tracks public and private finance flows across sectors, aligning with the national Green Finance Taxonomy and, for the first time, includes data on just transition-aligned investments.
The report reveals that annual climate finance averaged ZAR 188.3 billion between 2022 and 2023, driven mainly by private investment in renewable energy. This increase highlights the effects of policy reforms, improved project financing capacity, and growing investor confidence in South Africa’s clean energy transition.
However, the data also underscores significant imbalances in funding allocation. Over 70% of total investments went to the energy sector, while critical adaptation areas—such as water, transport, and agriculture—received less than 10% of the funds. To achieve its climate goals and Nationally Determined Contributions (NDCs), South Africa needs up to ZAR 499 billion annually, leaving a financing gap of as much as ZAR 311 billion. The shortfall is particularly severe in adaptation and just transition measures.
Experts say the findings show both progress and challenges. Dr. Barbara Buchner of CPI emphasized that while momentum is growing in clean energy and resilience, scaling up private and concessional finance will be essential for a truly just transition. GreenCape CEO Mike Mulcahy added that recent policy reforms and improved business conditions have helped attract more investment into key sectors, signaling strong opportunities for growth.
The report’s release comes ahead of the upcoming G20 Summit in Johannesburg—the first to be held on African soil—where climate action, debt sustainability, and poverty reduction will be key topics. The South African Climate Finance Landscape 2025 provides crucial data and insights to help shape investment strategies, guide public policy, and strengthen partnerships as the country moves from pledges to tangible action on climate and sustainable development.
