South Africa ranks 13th out of 21 countries to use tax as an incentive to drive the green growth agenda (ahead of Australia, Singapore, and Finland) according to the KPMG Green Tax Index. A range of funding solutions is available to green technology manufacturers and service companies, as well as those who use or procure such goods and services. These cover development finance institutions (DFI), local public and private sector financiers and investors, and a considerable range of tax incentives.
GreenCape's work in this space
The Green Finance Desk (GFD) primarily acts as a facilitator in the financing of green projects and green business. GDF works across all sector desks at GreenCape and its objectives are to:
- Develop a network of financial institutions (private and public) with green finance interests.
- Develop an understanding of the main green projects requiring investment/financing.
- Break down any barriers that exist between green finance and green projects.
- Facilitate the implementation/adoption of innovative financing solutions for green economy business models.
- Provide ad hoc support to programmes and initiatives requiring a financial/investment viewpoint.
The GFD has developed a tool to locate financiers in the green funding space, which is hosted on the South African National Energy Development Institute (SANEDI) website.