UK government-funded technical assistance organisation the Climate Finance Accelerator (CFA) South Africa has called for proposals for low-carbon projects that are seeking finance and which can achieve measurable climate outcomes or facilitate greenhouse-gas emission reductions.

The CFA aims to facilitate a collaborative approach to unlocking finance for climate projects at scale and create a pipeline of investment-ready low-carbon projects.

It is calling for applications, until November 17, from climate projects seeking support in accessing finance.

"Candidate projects should have a minimum total financing need of $4-million, be at least at the technical prefeasibility stage of development​ and have a business model that will generate commercially attractive and sustainable returns in the long term, although some element of concessional financing may be required initially," it said.

Further, candidate projects must also have sound project governance, leadership and management, and include systems to monitor and measure progress against stated targets and goals.

The CFA also strongly encourages projects that can demonstrate positive social impacts and how the projects contribute to furthering gender equality and social inclusion, including financial inclusion for marginalised social groups, the organisation said.

"The application process is not designed to select the most developed or complete projects, but rather those that are aligned with our objective of facilitating climate projects in line with South Africa’s Nationally Determined Contributions (NDCs) to access finance. Projects that meet the criteria are strongly encouraged to apply," it highlighted.

The CFA also seeks to deliver several co-benefits, such as supporting a just transition through green economy efforts that include inclusive approaches to sustainable development, improved social transformation, and building resilience to climate impacts.

Applications will be treated as confidential information and will not be reproduced, disclosed to others or used for any purpose other than for consideration under the CFA, it added.

However, the CFA programme does not provide direct financial or monetary support to projects, but rather provides capacity building and access to financiers.

CFA SUPPORT
The CFA is a practical and deal-oriented programme that supports climate projects to improve their bankability and appeal to financiers.

"Preparing projects that are attractive to investors is challenging. Low-carbon projects are often perceived as higher risk, as new technologies and business models are not widely understood. Regulatory and policy barriers can also create blockages in accessing capital at scale," it said.

Therefore, the CFA offers a range of capacity-building support to assist climate mitigation projects in accessing finance.

"The CFA provides project developers greater opportunities to access finance by working with potential investors to understand their needs. Through the CFA’s reach, project proponents have the opportunity to engage with national and international commercial and concessional investors."

Additionally, participation in the CFA and CFA events can raise the profile of a project among a range of stakeholders from regional and national policy makers, to local and international finance providers, it added.

The CFA also provides access to expert insight, awareness training, coaching and mentorship. Through knowledge-sharing sessions, project developers gain valuable insights and develop capabilities in making projects attractive and investment-ready.

"Project developers will have the opportunity to expand their network with investors and other key stakeholders in the climate finance landscape. These include government representatives at national and local level, national and international development banks and agencies, and a cohort of projects looking to improve their bankability.

"These networks will provide project developers with long-lasting benefits to current and future low-carbon opportunities," the climate organisation said.

Similarly, the CFA supports projects to realise and communicate their positive impacts, which are important to investors alongside commercial objectives.

"The CFA has access to climate, sectoral and social impact specialists and can assist projects to support local and national climate ambitions, as well as helping to unlock co-benefits such as poverty reduction, improved gender equality and social inclusion, and tackling biodiversity loss," it said.