A January 2025 report commissioned by Independent Philanthropy Association South Africa (IPASA) explores how private funders might effectively engage with climate change. Based on extensive consultations with climate and non-climate funders, government initiatives, and independent experts, the report provides a comprehensive analysis of South Africa’s climate funding landscape.
South Africa, which is Africa’s highest carbon emitter, is already facing climate impacts in the form of severe droughts, flooding, and wildfires, that disproportionately affect the country’s poor. Women, children and the elderly are differentially affected with the country’s high levels of poverty and inequality magnifying the cost of inaction on climate change.
The study explores South Africa’s independent funders with a particular focus on climate, identifying existing climate solutions they are implementing, resistance points for climate integration and how these relate to foundations’ investments, endowments and assets.
The report notes that climate change is often misunderstood as solely an environmental issue, overlooking its significant impacts on other development sectors, such as education or early childhood development, among others sectors. Many funders feel overwhelmed by the scale and complexity of the climate crisis, making it difficult to incorporate climate action into their existing work.
The study examines the government’s Just Energy Transition (JET) initiative, which will require approximately R8.5 trillion (about 4.4% of GDP) annually until 2050. It also evaluates how philanthropic funders can support this transition through strategic grant-making, innovative financing, and investment practices.
The report emphasises the opportunity the climate crisis presents for funders to strengthen their ongoing work. Many South African philanthropies are already implementing climate solutions in areas such as sustainable agriculture, water management, renewable energy, and education.
The report offers practical recommendations for funders to integrate climate considerations into their strategies, foster collaboration, develop shared understanding, and leverage the benefits of political opportunities such as South Africa’s G20 presidency.
Read the report: Climate Funder Landscape and Scoping Report, January 2025
