Assessing International Interoperability and Usability of the South African Green Finance Taxonomy

This research paper evaluates the international alignment and interoperability of the South African Green Finance Taxonomy (SA GFT). While the SA GFT shows high alignment regarding the 'Make Substantial Contribution' (MSC) principle, it faces challenges in usability and adoption concerning 'Do No Significant Harm' (DNSH) and 'Minimum Social Safeguards' (MSS) pillars, as well as gaps in governance and disclosure frameworks.

• The South African Green Finance Taxonomy (SA GFT) exhibits high international interoperability and alignment, particularly regarding the 'Make Substantial Contribution' (MSC) principle. This is attributed to its broad coverage of economic sectors, activities, and environmental objectives, with a specific priority placed on climate change mitigation to align with the Paris Agreement.
• The usability and adoption of the SA GFT are hindered by difficulties in demonstrating alignment with the 'Do No Significant Harm' (DNSH) and 'Minimum Social Safeguards' (MSS) pillars. Additionally, the framework suffers from a lack of clarity in governance and disclosure roles and a lack of compliance incentives.
• To improve the 'Do No Significant Harm' (DNSH) pillar, the report recommends moving away from an 'all-or-nothing' approach by introducing an 'eligible vs aligned' classification system. It also notes that while 57% of generic DNSH criteria include thresholds, many lack links to specific regulations or standards, creating uncertainty regarding alignment with international goals.
• Recommendations for the 'Minimum Social Safeguards' (MSS) pillar include integrating national regulations such as the Women Empowerment and Gender Equality Bill of 2013 and the Broad-based Black Economic Empowerment (B-BBEE) Act 53 of 2003. The report also suggests developing standardised metrics aligned with the Johannesburg Stock Exchange (JSE), SASB, and GRI.

APA

Climate Policy Initiative (2025). Assessing International Interoperability and Usability of the South African Green Finance Taxonomy. https://www.climatepolicyinitiative.org/publication/assessing-international-interoperability-and-usability-of-the-south-african-green-finance-taxonomy/

Chicago

Climate Policy Initiative. Assessing International Interoperability and Usability of the South African Green Finance Taxonomy. 2025. https://www.climatepolicyinitiative.org/publication/assessing-international-interoperability-and-usability-of-the-south-african-green-finance-taxonomy/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Assessing International Interoperability and Usability of the South African Green Finance Taxonomy |date=27 February 2025 |url=https://www.climatepolicyinitiative.org/publication/assessing-international-interoperability-and-usability-of-the-south-african-green-finance-taxonomy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025assessing, author = {{Climate Policy Initiative}}, title = {{Assessing International Interoperability and Usability of the South African Green Finance Taxonomy}}, institution = {Climate Policy Initiative}, year = {2025}, month = feb, url = {https://www.climatepolicyinitiative.org/publication/assessing-international-interoperability-and-usability-of-the-south-african-green-finance-taxonomy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }