The Green Fund is committed to preserving the environment for future generations while promoting the development of SA's economy.
The Green Fund is committed to preserving the environment for future generations while promoting the development of SA's economy.
Image: Supplied/DBSA

South Africans with green economy development projects and programmes will be pleased to know the government-owned Development Bank of Southern Africa (DBSA) has announced the availability of funding for such initiatives through its Green Fund.

This fund has been set up to contribute towards a wide range of goals in transitioning SA to a greener economy. This includes the financing of projects and programmes that reduce the impact of climate change.

The main objectives of the Green Fund are to promote high-impact, innovative, low-carbon and inclusive programmes, while reinforcing climate policy objectives and sustainable development imperatives that align with the country's social, economic and environmental priorities.

It also aims to build an evidence base for the advancement of a climate-resilient and inclusive economy, and to mobilise and leverage additional resources to support the country’s transition to a low-carbon economy.

Main areas of focus

The Green Fund has three main areas of focus:

1. Supporting a just transition to a low-carbon economy by:

  • Exploring opportunities that have the potential to catalyse initiatives that drive a “just transition”, such as emerging energy-generation and storage technologies;
  • Supporting local environmentally-friendly building technologies that promote the use of energy-efficient materials for sustainable human settlements;
  • Accelerating green technologies that support the beneficiation of local mineral resources;
  • Supporting “greening” within the transport sector;
  • Supporting resilience within the water sector, including wastewater treatment programmes in consultation with all relevant government and private sector stakeholders; and
  • Developing and funding waste management programmes and projects, including initiatives such as national solid waste programmes within municipalities, the establishment of material recovery facilities, and waste pelletisation.

2. Promoting the market-based adoption of integrated biogas technologies in small-, medium- and micro-scale enterprises to promote the development of the renewable energy sector and the green economy.

3. Providing support for youth development, including skills development and enterprise development, within a sustainability context.

Investment criteria

The Green Fund's investment criteria are designed to support the national development plan and the UN sustainable development goals.

As such, the fund will prioritise projects that:

  • Have clear environmental benefits that align with important environmental and climate policies;
  • Have the potential to improve the delivery of public goods and services;
  • Support transformation objectives and the development of the local labour market,
  • Improve opportunities for employment and green skills development;
  • Promote sustainable socioeconomic development; and
  • Support the capacity of a committed project sponsor to oversee and implement the project, while providing financial and management capacity for operations and maintenance, together with a high degree of sponsor/partner participation in co-funding the project.

Projects that are in advanced stages of development, are strategically aligned with the objectives of the Green Fund and demonstrate strong potential to reach bankability with the support of the DBSA, will also be considered.

How to apply for funding

To apply for funding, send an electronic introduction of the project or programme to greenfund@dbsa.org.

This introduction must include:

  1. An incorporation certificate;
  2. A comprehensive business plan;
  3. The latest audited annual financial statements; and
  4. Financial projections for at least three years.

Applications should demonstrate commercial viability and will be assessed through a competitive process.

The DBSA has the sole discretion to respond to multiple green economy objectives in making its selection, including climate and environmental impact, and gender mainstreaming potential for the project.

This article was paid for by DBSA