Green Fund Progress and Lessons “Impacts of Investment” NCPC, 22 July Durban

|| 2 Green Fund Establishment & Implementation FY2012/13-FY2015/16 National Treasury allocation of R1,1 billion April 2012 DBSA MoA with DEA implementing partner of GF (FY2012/13-FY2015/16) RFP3- Targeted/Active origination/Strategic engagements (Oct 2014) Programme Implementation, M&E, Knowledge Management, Lessons Learned RFP1- Project Finance (Sept/Oct 2012) RFP2- Research Grants (Feb/March 2014) WE ARE HERE

Green Fund Objectives & Programming Green Fund Portfolio of Projects (75%) Capacity Building (20%) Research (5%) Build evidence base for legislative reform Develop an investment environment for leveraging of non-public sector funds

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|| 6 …Green Fund Investments

|| 7 Green Fund Progress Project Investments Green Fund’s portfolio of investment projects are a total of 31 approved projects of which 19 are signed contracts 4 of the approved projects were withdrawn from the contracting process & 1 project was discontinued due to non-performance In addition to on-site monitoring, off-site monitoring of projects are engaged with on an ongoing basis Capacity Building Portfolio Capacity Building grants support initiatives at a programmatic level which have sector-wide impacts in support of South Africa’s transition to a green economy Approval of eight (8) capacity development projects and programmes in 2014 (amounting to R65 million in grant funding) focussing on programmatic/institutional capacity interventions Total of 8 approved projects have been contracted by March with a 3-year duration implementation period

| Environmental & Natural Resource Management Sustainable agriculture Ecological Infrastructure Wildlife Economy Green Cities & Towns Cities Green Transport Programme Waste Cooperatives Lithium Battery Recycling Renewable Energy solutions for mine rehabilitation Innovation for the Green Economy Green economy discourse, financial instruments, bio- based composites, bio-refineries, green construction, green microbicides Low Carbon Economy Carbon offsets trading platform Small-scale wind energy Green Fund Research Portfolio Overview

|| 9 …Green Fund Research Portfolio Progress 16 Research grants (valued at R36.9 million) were awarded in December Thematic spread of the Research Portfolio is as follows: Low Carbon Economy (13%), Environmental and Natural Resource Management (25%), Green Cities and Towns (25%) and Innovation for the Green Economy (37%) Research grants were mainly awarded to research institutes and universities (44%), with the remainder going to NGOs (31%), the private sector (19%) and public sector institutions (6%). Research portfolio period is on average 18 months, which was initiated in April 2014, will be ending in September 2015 and 80% of the grantees are on track

|| Research Portfolio: Key Achievements 10 Building of an evidence base and knowledge economy in support of the green economy in key economic sectors, including agriculture, energy, waste, biodiversity, wildlife, construction and transport. Human Capital Development- opportunities have arisen to support training and development of researchers, undergraduate and post-graduate students in green economy knowledge areas (127 research staff trained) Knowledge Development - Research into cutting-edge green technologies - Innovative finance, policy and planning models - Green economy potential of key sectors e.g. wildlife, agriculture - Communication of project information and findings to communities of interest, including policy makers and industry players. Translational Science Capacity - Build research↔ industry synergies (applied science) - 6 Patents and 3 Prototypes developed and grantees (6) require support to develop technological applications further (TIA, the dti)

| Successful projects will demonstrate to both the public and private sector investors that green investments are bankable and that fiscal support can catalyse investment by the private sector Green Fund offers opportunity to be instrumental in development of SA green finance architecture and its articulation with global funds such as the Global Environmental facility (GEF) and the Green Climate Fund (GCF) High demand for green finance was illustrated through the overwhelming response to the public calls for proposals Strategic partnerships with key stakeholders have been critical to the success of the funded initiatives Green Fund Lessons

| Way Forward Build an Evidence Base in Support of SA’s Green Economy Transition Institutionalise the Green Economy Research Agenda in SA Research Funding Landscape Continuous Engagement with DEA, DST and others to Increase and Support Policy Engagement to Promote Sharing and Uptake of Research Findings Identify Opportunities to Support Viable Innovations Publish and Distribute Research Reports and Policy Briefs

| Michelle Layte Green Fund- Secretariat Manager Development Bank of Southern Africa (DBSA) (office) Website: Michelle Layte Green Fund- Secretariat Manager Development Bank of Southern Africa (DBSA) (office) Website: