Philanthropy's role in powering SA's Just Transition

CLIMATE CHANGE

- DORAH MODISE

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.