Development finance institution the Development Bank of Southern Africa (DBSA) has announced the availability of funding towards green economy development projects and programmes under the Green Fund.
The Green Fund has been set up to contribute towards a range of goals in transitioning to a greener economy, including the financing of projects and programmes that reduce the impact on climate change, the institution says.
“The main objectives of the fund are to promote high-impact, innovative, low-carbon, inclusive programmes, while reinforcing climate policy objectives and sustainable development imperatives that fall in line with social, economic and environmental priorities.
“There is also a focus on building an evidence base for the advancement of a climate-resilient, inclusive economy, together with the mobilising and leveraging of additional resources to support the country’s low-carbon economy,” the DBSA notes.
The Green Fund investment criteria are designed to support the National Development Plan and the Sustainable Development Goals. As such, it will prioritise projects with clear environmental benefits and that align with important environmental or climate policies and that have the potential to improve the delivery of public goods and services and support transformation objectives.
The Green Fund will further support the development of the local labour market, with improved opportunities for employment and green skills development to promote sustainable socioeconomic development.
It will also 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 or partner participation in co-funding the project, it says.
The current focus areas of the Green Fund include supporting a just transition to a low-carbon economy through exploring opportunities that have the potential to catalyse initiatives that drive a just transition such as new or emerging energy generation and storage technologies.
Further, it will also support local environment-friendly building technologies that promote the use of energy efficient materials for sustainable human settlements and focus on accelerating green technologies that support beneficiation of local mineral resources, as well as supporting greening within the transport sector, DBSA says.
The Green Fund will also aim to support resilience within the water sector, including wastewater treatment programmes, in consultation with all relevant government and private sector stakeholders, as well as developing and funding waste management programmes and projects including initiatives such as national solid waste programmes within municipalities, including establishment of material recovery facilities and waste pelletisation, besides others.
The DBSA says the Green Fund will also promote market-based adoption of integrated biogas technologies in small, medium-sized and microenterprises to promote the development of the renewable energy sector and the green economy. It will also provide support for youth development (including skills development and enterprise development) within a sustainability context.
“Applications for funding should demonstrate commercial viability and will be assessed through a competitive process. The fund will also consider projects that are in advanced stages of development and are strategically aligned with the objectives of the Green Fund and demonstrate strong potential to reach bankability with the support of the DBSA.
“The DBSA has the sole discretion to respond to multiple green economy objectives, including climate, environmental impact, and gender mainstreaming potential, in making its selection,” it points out.
As part of companies' introductions to the Green Fund, each must provide an incorporation certification, a comprehensive business plan, their latest audited annual financial statements and financial projections for at least three years.
To apply, interested parties are asked to send an electronic introduction of the project to greenfund@dbsa.org.
Further information is also available on the DBSA's website.