Climate Finance Under the South African G20 Presidency

South Africa's 2025 G20 presidency focuses on four key priorities: disaster resilience, debt sustainability for low-income countries, financing just energy transitions, and critical minerals for sustainable development. The presidency aims to elevate 'country platforms' like South Africa's Just Energy Transition Partnership (JETP) and bring African climate finance concerns to the forefront. The Sustainable Finance Working Group (SFWG) for 2025 is tasked with strengthening the global sustainable finance architecture, scaling up adaptation and just transition finance, and unlocking carbon market potential. The report highlights opportunities for South Africa to enhance follow-up mechanisms for G20 commitments, engage African Union (AU) structures, and coordinate with Brazil ahead of COP30. However, the report notes diplomatic challenges regarding the US presidency's approach to climate multilateralism and the Paris Agreement.

• South Africa has identified four primary policy objectives for its 2025 G20 presidency: strengthening disaster resilience and response, ensuring debt sustainability for low-income countries, mobilising finance for a just energy transition, and harnessing critical minerals for inclusive growth and sustainable development.
• The 2025 Sustainable Finance Working Group (SFWG) has three main priorities: strengthening the global sustainable finance architecture, scaling up financing for adaptation and just transitions, and unlocking the financing potential of carbon markets.
• Specific deliverables for the 2025 SFWG include a compendium of co-financed projects, recommendations for scaling up co-financing by vertical climate and environmental funds (VCEFs) and development banks, an analysis of insurance protection gaps in agriculture, infrastructure, and real estate, and the creation of a Common Carbon Credit Data Model.
• South Africa intends to use its presidency to promote 'country platforms' for energy transitions, drawing on its own experience with the Just Energy Transition Partnership (JETP), which launched at COP26 in 2021 with pledges totaling $8.5 billion.
• The report identifies several strategic opportunities for South Africa, including creating enhanced follow-up mechanisms for the Sustainable Finance Roadmap, engaging the African Union (AU), and holding dedicated discussions with credit ratings agencies regarding the high cost of capital for developing countries.
• South Africa can leverage the Global Coalition for Energy Planning (GCEP), established under Brazil's presidency, and the Global Solidarity Levies Task Force (GSLTF) to boost finance for climate actions, particularly through levies on polluting industries.
• The transition of the G20 presidency to the US presents risks to the climate agenda, as the Trump administration has withdrawn from the Paris Agreement and prioritised fossil fuel production, leading some commercial banks to reverse divestment commitments.

APA

PEARSON, K. (2025). Climate Finance Under the South African G20 Presidency. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2025/03/SAIIA_Synthesis_2_G20ClimateFinance-2.pdf

Chicago

PEARSON, KIRSTEN. Climate Finance Under the South African G20 Presidency. South African Institute of International Affairs, 2025. https://saiia.org.za/wp-content/uploads/2025/03/SAIIA_Synthesis_2_G20ClimateFinance-2.pdf.

Wikipedia

{{cite report |last1=PEARSON |first1=KIRSTEN |title=Climate Finance Under the South African G20 Presidency |publisher=South African Institute of International Affairs |date=2025 |url=https://saiia.org.za/wp-content/uploads/2025/03/SAIIA_Synthesis_2_G20ClimateFinance-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pearson2025climate, author = {PEARSON, KIRSTEN}, title = {{Climate Finance Under the South African G20 Presidency}}, institution = {South African Institute of International Affairs}, year = {2025}, url = {https://saiia.org.za/wp-content/uploads/2025/03/SAIIA_Synthesis_2_G20ClimateFinance-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }