The South African government has demonstrated its commitment to fighting climate change by increasing funding for “disaster planning, preparedness and risk reduction”.
While delivering his budget speech yesterday, the Finance Minister Mr Enoch Godongwana, said the National Treasury is reviewing disaster response grants in order to improve efficiency.
“As climate-related disasters intensify, a multilayered risk-based approach is being developed to manage the associated fiscal risks. We are working with eight municipalities to adapt and mitigate the effects of climate and weather-related events, by providing technical assistance for climate-responsive capital projects,” the Minister explained.
“The government has raised 3.3 billion US dollars so far from multilateral development banks and international finance institutions to support climate change, energy, and just transition objectives,” he said.
Two weeks ago, President Cyril Ramaphosa announced in his State of the Nation Address that the government would soon establish a Climate-Change Response Fund. Minister Godongwana’s said the government’s risks-based approach considered various funding instruments from contingency funds, including the Climate-Change Response Fund.
“The National Treasury plays a crucial role in mobilising resources, designing incentives, and influencing policy to mainstream climate change. It is also developing a climate-budget tagging framework to influence policy, planning, and budget decisions by tracking climate-related expenditures in public budgets.”
He added that bringing in the private sector is necessary to manage the climate disaster fund. “We are actively participating in climate negotiations, aligning with the government’s advocacy for reforming multilateral finance institutions,” the Minister said.
Sibongile Maputi
22 February 2022
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