WATCH | G20 presidency presents an opportunity to champion climate adaptation finance

With global climate adaptation lagging far behind the accelerating crisis and Africa experiencing the intensity of the climate crisis, South Africa’s G20 presidency was a “historic opportunity” to champion climate adaptation and position the continent as a global climate innovation hub, Standard Bank says.

Speaking about the G20 presidency, Standard Bank’s Praveshni Sewmohan emphasises the potential to “champion priorities of the global South” and advocate for robust global adaptation goals that are comparable to mitigation targets. There remains a growing need for increased adaptation finance, including grant-based funding and debt relief mechanisms.

"The G20 presidency allowed us to elevate adaptation on the global agenda in order to secure tangible commitments," Sewmohan says, noting the importance of making adaptation "a shared economic imperative, not just a government responsibility."

While there is an increasing trend in adaptation thinking with policies and plans, implementation remains highly inadequate and largely unfunded.

"We are specifically working on financing solutions for adaptation projects. These are really challenging to finance because the revenue streams are lacking or are insufficient to bank, and so we need to find innovative solutions."

Regional energy projects gain momentum

The bank is backing concrete energy transition initiatives across the region including South Africa’s REIPPPP and BESIPPPP programmes, Other examples include Solar Century Africa’s solar projects in Zambia and Botswana that feed into the Southern African Power Pool (SAPP), and CrossBoundary Energy Holdings’ renewable energy deployments across multiple African jurisdictions.

In a recent deal addressing Zambia’s drought-induced energy crisis, Standard Bank provided a receivables-backed facility to Green Co for energy purchases to Zambia, demonstrating innovative financing solutions for energy security challenges.

The Southern African Power Pool is a key regional cooperation mechanism, enabling economies of scale, cost reduction and improved efficiencies while balancing energy supply and demand across borders.
Regional bodies like SADC play a crucial role in coordinating cross-border efforts

"Regional collaboration is essential for successful climate adaptation, particularly in Africa," Sewmohan notes, pointing to SAPP’s role in promoting interconnected energy infrastructure development.

Regional bodies like SADC play a crucial role in coordinating cross-border efforts which can include water management and agricultural risk reduction, though Sewmohan emphasises the need for these organisations to "Focus on implementation, not just commitments."