Web money

SA aims to integrate climate-related spending into the budget

The South African Treasury intends to use 11 pilot projects it has set up to track climate change spending as a starting point for determining how to integrate environmental factors and objectives into the national budget.

The so-called climate budget tagging pilots, which began last year and are due to end next month, “will help improve future spending on mitigation and adaptation measures” and strengthen cooperation between spheres of government when it comes to responding to climate change, the Treasury said in response to questions by email.

South Africa, the 13th biggest emitter of greenhouse gases in the world, has set a goal of net zero carbon emissions by 2050 as climate risks increase. The eastern province of KwaZulu-Natal suffered the worst flooding in nearly three decades during a severe storm in April, and scientists collaborating under the World Weather Attribution initiative have warned that heavy rain could come more regularly due to global warming caused by the greenhouse effect. gas emission.

According to a study by the Blended Finance Taskforce and the Center for Sustainability Transitions at the University of Stellenbosch.

Although it is premature to describe the impact of a transition to cleaner energy on the budget, “there are clear opportunities to integrate climate change into infrastructure investments and thus leverage fiscal resources and mobilize blended finance, create jobs and ensure more resilient, sustainable and productive cities”. “, said the Treasury. It has already started working with metropolitan councils to ensure that climate resilience is considered in the development and financing of infrastructure projects.

© 2022 Bloomberg