The United Kingdom’s Climate Finance Accelerator (CFA) South Africa has opened its fourth call for proposals, representing a critical component of the country’s ambitious Just Energy Transition Partnership (JETP) and broader efforts to decarbonize its economy. The initiative, funded by the UK Government, seeks to bolster the development and financing of low-carbon projects across key sectors – energy, transport, waste management, water, and sustainable agriculture – contributing directly to South Africa’s goal of achieving net-zero emissions by 2050. The stakes are high; South Africa, a globally significant emitter due to its coal-dependent energy system, is facing immense pressure to transition to a cleaner, more sustainable future. The CFA’s success is intrinsically linked to the broader international commitment to mobilise finance for developing nations navigating the complex challenges of this transition.
The need for such interventions is underscored by the November 2025 Johannesburg G20 Leaders’ Declaration, which explicitly supports efforts to mobilize public and private finance for just energy transitions in developing countries. This declaration, a direct result of the South African G20 Presidency, highlights the significant investment gaps confronting nations attempting to overhaul their energy infrastructure. The CFA’s focus on bankable project development reflects a recognized urgency within the international climate finance landscape – securing investment is often the most challenging hurdle for nascent green technologies.
Since its inception, the CFA South Africa program has facilitated close to $100 million in climate finance across three previous iterations. This demonstrates a tangible impact, moving projects from conceptual stages towards investor readiness. The program’s structure – offering tailored support including group workshops and one-to-one guidance from financial and technical experts – is designed to address a common obstacle: the perceived risk associated with investing in unproven technologies or nascent markets. “The CFA team helped us refine our capital-raising strategy and facilitated introductions to key investors and stakeholders in the energy sector,” stated Kailas Nair, Chief Growth Officer at Plentify, a CFA SA 2023 cohort participant. “We found the program invaluable and would recommend it to other startups in South Africa.”
Key stakeholders involved include the UK Government (through the Department for Energy Security and Net Zero – DESNZ), the South African Government, the National Business Initiative (NBI), GreenCape, and a range of investors and project developers. The NBI, a voluntary coalition of leading South African companies, plays a crucial role in facilitating partnerships and knowledge sharing. GreenCape, a non-profit organization, focuses on driving the adoption of green economy solutions, working with businesses, investors, and government to unlock investment potential. The program is implemented in ten countries globally: Colombia, India, Indonesia, Kenya, Malaysia, Mexico, Pakistan, South Africa, Thailand and Viet Nam.
The CFA operates through a series of stages, culminating in a highly competitive selection process. Projects must demonstrate feasibility and require a minimum investment of USD $3 million. Data from previous iterations reveals that 43 projects have received capacity-building support, including technical and financial training. Direct engagement with local and international investors has led to investment decisions exceeding $100 million. “South Africa needs bold, investment-ready climate solutions, and the Climate Finance Accelerator remains one of the most effective platforms for helping low-carbon businesses strengthen their bankability,” noted Shameela Soobramoney, CEO of the National Business Initiative. “This new call for proposals is a chance to accelerate impact and secure the funding needed to scale.”
Looking ahead, the success of the CFA’s fourth iteration will be crucial in shaping South Africa’s energy transition. Short-term outcomes (next 6 months) will likely see increased project activity, further refinement of bankable projects, and potential demonstration effects that encourage wider private sector investment. Long-term (5–10 years), the CFA could play a pivotal role in establishing a robust, low-carbon economy in South Africa, contributing to job creation and broader economic diversification. However, sustained success depends on addressing systemic challenges, including regulatory frameworks, infrastructure limitations, and the ongoing need for technological innovation. “GreenCape is excited to see which companies and solutions emerge from this fourth iteration of CFA SA,” commented Mike Mulcahy, CEO of GreenCape. “The programme is a practical way to channel more investment into green tech companies that create jobs and growth. As CFA expands globally, sharing lessons across countries will make it even more effective.”
The program’s alignment with the UK’s JETP pledge underscores the country’s commitment to climate finance and underscores the increasing interconnectedness of global climate efforts. The continued collaboration between the UK and South Africa, facilitated by the CFA, offers a valuable model for other nations seeking to address the urgent need for climate action on a global scale. Despite being implemented across ten countries, lessons learned from South Africa’s experience can inform program expansion and contribute to a more effective and globally scalable approach to supporting just energy transitions.