| Led by: GreenCape Sector Development Agency |
| Sector: Finance |
“With the aim of improving and deepening interoperability of climate finance instruments we believe this project will support the much needed scaling up of green finance. Providing shared languages across geographies will enhance project credibility, shortening lead-times and accelerating projects in the green economy,” - Mike Mulcahy, CEO, GreenCape Sector Development Agency
This project aims to overcome the challenges South Africa faces in aligning its decarbonisation efforts with global benchmarks due to limited capacity and the lack of standardised data reporting. It will enhance the integration of South Africa's green finance taxonomy, data disclosure standards, and methodologies with those of the UK and other markets.
By fostering integration between South African and UK taxonomies, the initiative seeks to streamline cross-border green finance, thereby supporting the green economies of both nations and assisting them in achieving their transition targets. It will enhance the integration of South Africa’s green finance taxonomy, data disclosure standards and methodologies with those of the UK and other markets. The goal is to simplify the reporting process and lower compliance costs for cross-border green investment entering South Africa The project focuses on removing obstacles that hinder the alignment of South Africa's decarbonisation pathways, investment strategies, and taxonomy with international standards and scenarios, aiming to pave the way for more effective and cohesive global environmental efforts.
“The world is facing more extreme climate events. It has brought into sharp focus the need to scale up climate finance and infrastructure to withstand these shocks and stresses. This project will enable the alignment of projects, allowing increased financial flows into crucial green economy projects.” - Mike Mulcahy, CEO, GreenCape Sector Development Agency
With 91% of South Africa’s tracked climate finance sourced domestically and the remaining 9% sourced internationally, an aligned green finance taxonomy should act as a catalyst for more international finance into South African climate related projects, further driving jobs and investment. The project will further address barriers affecting the alignment of South Africa’s decarbonisation pathways and investment trajectories with global scenarios and benchmarks.
