Independent Assurance Provider’s Limited Assurance Report

KPMG provided a limited assurance report confirming that the City of Cape Town's proposed Green Bond framework and nominated projects conform to the Pre-Issuance Requirements of the Climate Bonds Standard V2.1. The bond focuses on refinancing existing projects, with 92.8% of proceeds allocated to water infrastructure and 7.2% to low-carbon transport (specifically electric buses). While most projects are aligned with Phase 1 water criteria, some are aligned with draft Phase 2 criteria and will be verified post-issuance. The report also highlights the city's response to a climate-change-induced drought through Level 4 water restrictions.

• KPMG Services Proprietary Limited concluded that nothing came to its attention to indicate that the projects listed in the 'Green definitions' section of the 'Climate Bond Information Form' or the processes in the 'City of Cape Town Green Bond Framework V2.3' do not conform to the 'Selection of Nominated Projects & Assets' and 'Internal Processes and Controls' sections of the Pre-Issuance Requirements of the Climate Bonds Standard V2.1.
• The proposed Green Bond is designed to refinance 100% of eligible projects that have already undergone formal budgeting and funding allocation, with 0% allocated to new assets.
• The allocation of proceeds for the Green Bond is split between two categories: Water, which accounts for 92.8%, and Low carbon transport, which accounts for 7.2%.
• The document identifies nine specific projects for the bond. Projects 1 through 5 and 8 are aligned with Phase 1 of the Water Criteria of the Climate Bonds Standard V2.1. Projects 6 and 7 are aligned with the draft Phase 2 Water Criteria.
• Project 6, involving Sir Lowry's Pass River pass upgrades, is subject to a specific condition: because the Water Criteria Phase 2 is in draft, its eligibility will be confirmed during the post-issuance assurance process, and funding will remain unallocated until the criteria are finalised.
• Project 9 involves the procurement of 10 electric buses for the Integrated Rapid Transit (IRT) system to be deployed in the Central Business District of Cape Town and the Metro-South-East region (Khayelitsha and Mitchells Plain), with a budget of R 120,000,000.
• The City of Cape Town's governance for project selection includes the use of the SAP ERP system and the Green Economy and Climate Change Working Group. Projects must be approved capital projects with a CAPEX greater than ZAR 10,000,000 delivered between FY2010/11 and FY2018/19.
• Proceeds for the Green Bond will be held in temporary 'Green' investment instruments (cash or cash equivalents) within the City of Cape Town Treasury Function until allocated to eligible projects.
• The City plans a phased approach to reporting green credentials: initial reporting (1-3 years) will focus on technical implementation inputs, followed by reporting on outputs (1-3 years), and finally reporting on outcomes and impacts (3-10 years).
• The document notes that Cape Town is experiencing a drought directly related to climate change, which led to the implementation of Level 4 water restrictions and a local disaster declaration by the Executive Mayor on 6 March 2017.

APA

Climate Bonds Initiative (n.d.). Independent Assurance Provider’s Limited Assurance Report. https://www.climatebonds.net/files/drupal-files/files/FINAL_Preissuance%20assurance%20report_CCT%20Green%20Bond_with%20Appendices%20(13_06_2017).pdf

Chicago

Climate Bonds Initiative. Independent Assurance Provider’s Limited Assurance Report. n.d. https://www.climatebonds.net/files/drupal-files/files/FINAL_Preissuance%20assurance%20report_CCT%20Green%20Bond_with%20Appendices%20(13_06_2017).pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Independent Assurance Provider’s Limited Assurance Report |url=https://www.climatebonds.net/files/drupal-files/files/FINAL_Preissuance%20assurance%20report_CCT%20Green%20Bond_with%20Appendices%20(13_06_2017).pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiativendindependent, author = {{Climate Bonds Initiative}}, title = {{Independent Assurance Provider’s Limited Assurance Report}}, institution = {Climate Bonds Initiative}, url = {https://www.climatebonds.net/files/drupal-files/files/FINAL_Preissuance%20assurance%20report_CCT%20Green%20Bond_with%20Appendices%20(13_06_2017).pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }