<\/p>\n
National Treasury has invited financial institutions, businesses, regulators, industry associations, civil society organisations, academics and members of the public to comment on the proposals.<\/p>\n
<\/p>\n
The consultation paper seeks to establish practical and proportionate guidance for banks, insurers, asset managers and other investors responding to climate-related risks and opportunities.<\/p>\n
<\/p>\n
The proposed Climate Transition Planning and Disclosure Framework would align financial institutions\u2019 strategies with SA\u2019s transition towards a low-emission and climate-resilient economy.<\/p>\n
<\/p>\n
The framework recognises that the transition must address emissions reduction, climate adaptation and the need to protect workers and communities affected by economic change.<\/p>\n
<\/p>\n
SA\u2019s annual investment requirements for climate mitigation, adaptation and a just transition are estimated to average 4.4% of gross domestic product until 2050.<\/p>\n
<\/p>\n
National Treasury said financial institutions had an important role in directing capital towards investments supporting those objectives.<\/p>\n
<\/p>\n
Effective planning would also require credible transition plans from businesses operating in the real economy.<\/p>\n
<\/p>\n
Banks and investors depend on reliable corporate information to assess climate-related risks, evaluate investment opportunities and make informed financing decisions.<\/p>\n
<\/p>\n
The consultation paper identifies coherent public policy, economy-wide incentives, standardised data and appropriate regulatory guidance as necessary conditions for successful implementation.<\/p>\n
<\/p>\n
The proposals cover three areas.<\/p>\n
<\/p>\n
The first explains how transition plans could help institutions manage climate risks and opportunities while aligning with international standards and emerging practices.<\/p>\n
<\/p>\n
The second assesses the SA financial system\u2019s exposure to climate risks and opportunities and considers the sector\u2019s current readiness to develop transition plans.<\/p>\n
<\/p>\n
The third proposes national design principles, minimum features and conditions for implementing financial-sector transition planning and disclosure.<\/p>\n
<\/p>\n
National Treasury said the framework should reflect SA\u2019s economic conditions, development priorities and sector-specific realities rather than applying international standards without local adaptation.<\/p>\n
<\/p>\n
Public consultation is intended to determine whether the proposals are practical and responsive to the country\u2019s circumstances.<\/p>\n
<\/p>\n
The framework ultimately seeks to improve the consistency and quality of climate transition plans while linking institutional strategies and financing decisions to national development goals.<\/p>\n
<\/p>\n
National Treasury said stronger transition planning could help the financial sector mobilise investment, improve climate-risk management and support a just and resilient economic transition.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":44338,"template":"","meta":{"_acf_changed":false,"_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-48898","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"South Africa's (SA) financial institutions could be required to develop credible climate transition plans under a proposed National Treasury framework intended to guide investment and financial decision-making.","published_date":"","news_description":"South Africa's (SA) financial institutions could be required to develop credible climate transition plans under a proposed National Treasury framework intended to guide investment and financial decision-making.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/48898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":2,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/48898\/revisions"}],"predecessor-version":[{"id":48900,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/48898\/revisions\/48900"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/44338"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=48898"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=48898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}