Standard Bank has earmarked between R250bn and R300bn for sustainable finance projects by the end of 2026.
This target includes financing R50 billion for renewable energy and writing down an additional R15 billion for renewable energy by the end of 2024.
This was announced by Kenny Fihla, CEO of Corporate and Investment Banking at Standard Bank Group.
The minister said this this week at the second climate conference organized by Standard Bank in collaboration with the University of London’s School of Oriental and African Studies.
“I am pleased to announce that since the launch of our climate policy this year, we have committed almost R40bn of sustainable financing and are on track to exceed these targets ahead of schedule,” said Fihla.
“Energy supply may be more subject to geopolitical competition than it is now.
“Regions and groups want to be energy self-reliant – or at least rely on countries that are not their rivals. In this context, building Africa’s capacity to meet our own energy needs will always be important,” said CEO Standard Bank Group, Sim Tshabalala.
“Similarly, there will be huge opportunities for African exporters of transitional and renewable energy. Increasing our sustainable and transitional energy capacity will increase the fiscal head of African countries – which is critical to effective sovereignty. It will allow us to move deeper into global supply chains – very helpful for broader industrial development.”
This year’s Climate Summit comes on the back of Standard Bank Group’s climate policy announcement earlier this year, which commits to achieving a net-zero portfolio mix by 2050.
The one-day event built on last year’s Net Zero theme and looked at climate change in the context of energy supply, and focused on a fair energy transition to identify, integrate and make African voices heard on this important topic.
For this, four in-depth panel discussions were held on the following topics: energy transition; opportunities and risks; green investment; and the role of government.
South Africa’s Minister of Forestry, Fisheries and Environment, Barbara Creasy, said: “To reach our net zero goals, we must remember that we need to put our people and communities at the center of a real transition that ensures better and decent jobs, social protection, more training. Greater job security for all workers affected by global warming and climate change policies.
“This is a very important and cornerstone of our development agenda to establish a green economy in South Africa.”
Industry leaders, investors, government, civil society and some of Africa’s leading policy makers have suggested that Africa should join efforts to limit greenhouse gas emissions, a move that should be considered in Africa’s just transition to a low-carbon economy. .
He said this should be done in a way that recognizes and addresses the deep energy shortage in African economies where less than 43 percent of the population has access to the national grid.
The world’s focus is on COP27 in Sharm el-Sheikh, Egypt, where the forum promises to unlock Africa’s potential to generate significant capital to deploy climate change mitigation solutions. A key player in the low carbon economy.
The call to action now is that Africa must urgently access technology and finance, prioritizing capacity building support.
