Green Fund Progress and Lessons “Impacts of Investment”

NCPC, 22 July Durban

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Green Fund Establishment & ImplementationFY2012/13-FY2015/16

National Treasury allocation of R1,1 billion

April 2012

DBSA MoA with DEA implementing partner of GF(FY2012/13-FY2015/16)

RFP3- Targeted/Active origination/Strategic engagements

(Oct 2014)

Programme Implementation, M&E, Knowledge Management, Lessons Learned

RFP1- Project Finance (Sept/Oct 2012)

RFP2- Research Grants(Feb/March 2014)

WE ARE HERE

Green Fund Objectives & Programming

Green Fund Portfolio of

Projects

(75%)

Capacity Building

(20%)

Research

(5%)

Build evidence base for

legislative reform

Develop an investment

environment for leveraging of non-public sector funds

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2012/2013 2013/2014 2014/2015 2015/2016 Cumulative

Approvals 331,314,439 339,818,897 455,108,100 - 1,126,241,436

Commitments 212,514,439 319,218,897 103,150,840 - 634,884,176

Disbursements 35,109,806 189,340,234 229,522,856 11,589,531 453,972,896

Green Fund Investments

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Series1

532,630,899

36,270,177 65,974,110

Total Commitments (R634.9 millionZAR) by

Project type as at 31 March 2015

Investment Projects Research Projects Capacity Building

Green Fund Investments

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…Green Fund Investments

2012/2013 2013/2014 2014/2015 Total

16,711,868 13,321,568

39,258,740

69,292,176

18,397,938

114,448,656

47,192,381

180,038,975

-

25,299,833

107,639,570

132,939,403

Investment project disbursements (R) by Funding window

Environmental and Natural Resources Management Green Cities and Towns Low Carbon Economy

Series1

103,874,990

213,231,909 215,524,000

Investment project commitments (R) by Funding window

Environmental and Natural Resources Management Green Cities and Towns

Low Carbon Economy

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Green Fund Progress

• Project Investments

• Green Fund’s portfolio of investment projects are a total of 31 approved projects

of which 19 are signed contracts

• 4 of the approved projects were withdrawn from the contracting process & 1

project was discontinued due to non-performance

• In addition to on-site monitoring, off-site monitoring of projects are engaged with

on an ongoing basis

• Capacity Building Portfolio

• Capacity Building grants support initiatives at a programmatic level which have

sector-wide impacts in support of South Africa’s transition to a green economy

• Approval of eight (8) capacity development projects and programmes in 2014

(amounting to R65 million in grant funding) focussing on

programmatic/institutional capacity interventions

• Total of 8 approved projects have been contracted by March 2015- with a 3-year

duration implementation period

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Environmental & Natural Resource

ManagementSustainable agricultureEcological

InfrastructureWildlife Economy

Green Cities & Towns

Cities Green Transport

ProgrammeWaste Cooperatives

Lithium Battery Recycling

Renewable Energy solutions for mine

rehabilitation

Innovation for the Green Economy

Green economy discourse, financial instruments, bio-

based composites, bio-refineries, green construction, green

microbicides

Low Carbon Economy

Carbon offsets trading platform

Small-scale wind energy

Green Fund Research Portfolio Overview

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…Green Fund Research Portfolio Progress

• 16 Research grants (valued at R36.9 million) were awarded in December 2013.

• Thematic spread of the Research Portfolio is as follows: Low Carbon Economy (13%),

Environmental and Natural Resource Management (25%), Green Cities and Towns

(25%) and Innovation for the Green Economy (37%)

• Research grants were mainly awarded to research institutes and universities (44%),

with the remainder going to NGOs (31%), the private sector (19%) and public sector

institutions (6%).

• Research portfolio period is on average 18 months, which was initiated in April 2014,

will be ending in September 2015 and 80% of the grantees are on track

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Research Portfolio: Key Achievements

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• Building of an evidence base and knowledge economy in support of the green economy in key economic sectors, including agriculture, energy, waste, biodiversity, wildlife, construction and transport.

• Human Capital Development- opportunities have arisen to support training and development of researchers, undergraduate and post-graduate students in green economy knowledge areas (127 research staff trained)

• Knowledge Development- Research into cutting-edge green technologies- Innovative finance, policy and planning models- Green economy potential of key sectors e.g. wildlife, agriculture

- Communication of project information and findings to communities of interest, including policy makers and industry players.

• Translational Science Capacity- Build research↔ industry synergies (applied science)- 6 Patents and 3 Prototypes developed and grantees (6) require support to develop technological applications further (TIA, the dti)

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• Successful projects will demonstrate to both the public and private sector investors that green investments are bankable and that fiscal support can catalyse investment by the private sector

• Green Fund offers opportunity to be instrumental in development of SA green finance architecture and its articulation with global funds such as the Global Environmental facility (GEF) and the Green Climate Fund (GCF)

• High demand for green finance was illustrated through the overwhelming response to the public calls for proposals

• Strategic partnerships with key stakeholders have been critical to the success of the funded initiatives

Green Fund Lessons

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Way Forward

• Build an Evidence Base in Support of SA’s Green Economy Transition

• Institutionalise the Green Economy Research Agenda in SA Research Funding Landscape

• Continuous Engagement with DEA, DST and others to Increase and Support Policy Engagement to Promote Sharing and Uptake of Research Findings

• Identify Opportunities to Support Viable Innovations

• Publish and Distribute Research Reports and Policy Briefs

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Michelle LayteGreen Fund- Secretariat Manager

Development Bank of Southern Africa (DBSA)+27 11 313  5237 (office)

Website: www.sagreenfund.org.za