The South African Climate Finance Landscape 2025

South African Climate Finance Landscape 2025" is a technical guide providing empirical evidence on climate finance investment flows directed toward low-carbon and climate-resilient interventions in South Africa for the calendar years 2022 and 2023. Prepared for the Presidential Climate Commission, this report serves as a vital resource for policymakers, regulators, and financial institutions by mapping project-level investments, identifying financial sources and instruments, and highlighting sectoral gaps. By tracking these flows, the guide aims to inform evidence-based decision-making to facilitate the scaling up of climate finance and support a just and equitable transition toward a low-emissions, climate-resilient economy.

Key insights and highlights from the report include:

• Investment Scale: The report tracked an annual average of ZAR 188.3 billion in climate finance for 2022–2023. However, achieving national net-zero targets requires a two- to threefold increase in annual investment, with potential needs reaching up to ZAR 499 billion.
• Sectoral Dominance: Energy remains the primary focus of climate investment, capturing approximately 74.1% (ZAR 139.5 billion) of all tracked flows, largely driven by the urgent need for renewable electricity generation.
• Lagging Adaptation: Adaptation finance remains modest, representing only 11.3% of total tracked investment. This creates a critical funding gap given the country’s vulnerability to climate risks and the often-fragmented nature of adaptation projects.
• Source of Funds: Nearly 60% of tracked climate finance originated from domestic sources, underscoring the strength and participation of South Africa’s local financial sector, while international finance was primarily led by public actors.
• Methodological Advances: This 2025 edition introduces important improvements, including closer alignment with the South African Green Finance Taxonomy, greater data granularity, and a pilot methodology for tracking just transition–aligned investments.