Philanthropy's role in powering South Africa's Just Transition
South Africa, much like other emerging economies, faces a complex climate finance landscape, with much higher investment needed than what is currently available, the writer says.
Image: Supplied
The F20 Climate Solutions Forum convenes in Cape Town from May 27–28, 2025, when the urgency to mobilise climate finance has never been more pronounced and the climate crisis and the economic wars more than ever protracted
Under the theme 'Trust. Transition. Transformation: Building Relationships for Climate Solidarity', the Forum was an opportunity to shape an agenda that accelerates the implementation of the Sustainable Development Goals (SDGs) and advances Africa's priorities in the G20 dialogue, as a pre-cursor engagement complementing South Africa's G20 Presidency's rallying call for "Solidarity, Equality, and Sustainability".
South Africa, much like other emerging economies, faces a complex climate finance landscape, with much higher investment needed than what is currently available.
High capital costs coupled with shifting global geopolitical priorities make attracting climate finance for large-scale climate action increasingly difficult.
Public sector finance while crucial, falls short of meeting the scale of investment necessary to achieve meaningful climate action.
The picture is bleaker for adaptation investments, mainly driven by public sector spend.
F20 Climate Solutions Forum, recognised philanthropies' potential to build a resilient foundation for inclusive sustainable development, primarily because philanthropy's role and investment in climate action goes well beyond monetary contributions.
Philanthropy bridges this critical funding gap, offering flexible, grant-based financing that can underwrite high-risk, early-stage investments, thus de-risking projects to attract private capital. Moreover, philanthropy can offer the flexibility to experiment with innovative solutions and invest in communities that often fall through the cracks of traditional financial systems.
Philanthropic organisations have a distinctive capability to support innovative approaches and experimental solutions, which traditional finance systems often overlook due to perceived risks. Crucially, philanthropy's contribution extends into social dimensions, embedding equity and inclusivity at the core of climate finance strategies.
This unique agility enables philanthropy to catalyse pioneering technologies, novel practices, and community-driven initiatives essential to tackling climate change's intricate challenges.
For instance, in the energy sector, philanthropic investment has accelerated renewable energy projects by underwriting initial feasibility studies and early-stage technological development, thus significantly mitigate investment risks for subsequent public and private sector funders, creating a catalytic ripple effect.
In regions whose economies and livelihoods were built and bolstered on coal power electricity generation such as Mpumalanga's coal-mining communities, philanthropic funding may, and is being mobilised to address the ' just elements ' of our energy transitions through initiatives like social ownership of micro grids, local economic diversification, workers reskilling and job market transitioning .
The PCC's Just Transition Framework Mechanism (JTFM) offers a structured, equitable approach to financing decisions, prioritising transparency and community involvement.
By anchoring philanthropic investments within this structured framework, funds directly contribute to equitable outcomes, reinforcing the principles of procedural justice, distributive justice, and restorative justice essential for a just transition.
Additionally, the Just Adaptation and Resilience Investment Plan (JARIP) integrates philanthropy into its funding strategy, targeting adaptation and resilience initiatives tailored for municipalities and vulnerable communities.
This intentional alignment ensures that philanthropy effectively enhances local resilience efforts, investing in nature-based solutions and community infrastructure, ultimately fortifying South Africa against climate-induced vulnerabilities.
However, harnessing philanthropy's full potential requires concerted efforts in partnership building.
Strengthening collaboration across governmental institutions, private sector actors, civil society, and philanthropic entities is critical.
Each stakeholder brings distinct strengths, and synchronising these diverse contributions optimises outcomes, reinforcing collective resilience and sustainable development.
The PCC continues to advocate for an increased role of philanthropy in national climate finance strategies, through transparent, inclusive country platforms that systematically coordinates and crowd-in philanthropic contributions alongside public and private financing, aligning investments with national climate objectives and local community priorities to enhances coherence and impact.
Transparency and accountability in philanthropic involvement are equally indispensable. Systematic integration of philanthropic funds into national climate strategies, supported by robust accountability mechanisms, ensures clarity in resource allocation and effectiveness in implementation.
Philanthropic actors must commit to clear, measurable targets aligned with national climate objectives, fostering mutual trust and accountability among stakeholders.
Moreover, inclusivity must remain central to all climate actions supported by philanthropy. Vulnerable communities should not merely be beneficiaries of philanthropic largesse but active participants in decision-making processes.
Elevating community voices ensures climate initiatives accurately reflect local realities, needs, and aspirations, thereby avoiding the exacerbation of existing inequalities and actively promoting social equity.
South Africa's proactive engagement of philanthropy within structured climate finance frameworks serves as a learning curve for many developing economies, but with early signs of best practice in demonstrating the successful integration of philanthropic finance can inspire broader international collaboration, encouraging similar engagements across Africa.
Such leadership is essential in addressing global climate equity, ensuring resources flow not only to high-profile projects but also towards vulnerable communities disproportionately impacted by climate change.
Philanthropy's agility and willingness to experiment positions it uniquely to champion innovation, equity, and resilience in climate finance.
By strategically embedding philanthropic contributions within transparent and inclusive frameworks, South Africa can amplify the effectiveness and fairness of climate finance, driving transformative systemic change.
Dorah Modise is the Presidential Climate Commission, Executive Director.
Dorah Modise is the Presidential Climate Commission, Executive Director.
Image: Supplied.
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