The South African Climate Finance Landscape 2025

The South African Climate Finance Landscape 2025 reports an annual average of ZAR 188.3 billion in climate finance for 2022-2023, dominated by energy mitigation (74.1%). While flows have increased since previous tracking periods, they remain below the estimated ZAR 499 billion per year needed to meet NDC and net-zero targets. Adaptation finance is significantly lagging at 11.3% of total flows, and just transition-aligned investment remains modest at ZAR 16.0 billion annually. The landscape is characterized by a strong domestic financial sector, with nearly 60% of flows originating domestically, while international finance is primarily driven by public sources and the Just Energy Transition Partnership (JETP).

• Annual average climate finance flows for 2022-2023 were ZAR 188.3 billion, which is insufficient to meet national targets. Meeting NDC and net-zero goals requires an estimated ZAR 499 billion per year, representing a two to threefold increase over current levels.
• Energy investments dominate the landscape, accounting for 74.1% (ZAR 139.5 billion) of annual average finance, driven by the electricity crisis and the shift toward solar PV, wind, and battery storage. Solar PV received the largest share at ZAR 64.8 billion (47%) of energy-related mitigation investments.
• Adaptation finance is significantly underfunded, representing only 11.3% of tracked finance, which is well below the African average of 33.7%. This gap is attributed to a lack of clear revenue streams for private capital, fiscal constraints (debt-to-GDP of ~74% in 2024), and data gaps regarding municipal spending.
• Domestic sources provided nearly 60% of total climate finance, with commercial banks contributing the most (ZAR 36.6 billion annually). International flows are dominated by public intermediaries, with 71.2% originating from Western Europe, largely through the Just Energy Transition Partnership (JETP).
• Just transition-aligned finance is emerging but remains limited, averaging ZAR 16.0 billion over 2022-2023. These flows are primarily sourced from government and development finance institutions, with limited private sector participation due to an underdeveloped project pipeline.

APA

Climate Policy Initiative (2025). The South African Climate Finance Landscape 2025. https://www.climatepolicyinitiative.org/publication/the-south-african-climate-finance-landscape-2025/

Chicago

Climate Policy Initiative. The South African Climate Finance Landscape 2025. 2025. https://www.climatepolicyinitiative.org/publication/the-south-african-climate-finance-landscape-2025/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=The South African Climate Finance Landscape 2025 |date=27 October 2025 |url=https://www.climatepolicyinitiative.org/publication/the-south-african-climate-finance-landscape-2025/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025south, author = {{Climate Policy Initiative}}, title = {{The South African Climate Finance Landscape 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/publication/the-south-african-climate-finance-landscape-2025/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }