This policy brief calls for a decisive move towards climate-responsive budgeting (CRB) in South Africa—where public funds are transparently tracked, socially informed, and aligned with the country’s environmental goals.
While South Africa has piloted Climate Budget Tagging (CBT), several challenges remain: inconsistent departmental coordination, a lack of transparency on debt use, limited inclusion of justice outcomes, and inadequate public engagement.
The brief recommends a comprehensive framework to improve CBT implementation:
- Tag both positive and negative climate expenditures
- Include social and gender impacts (as done in France and Indonesia)
- Track revenue sources and debt obligations
- Conduct regular Climate Public Expenditure and Institutional Reviews (CPEIRs)
- Ensure meaningful public participation and accessible reporting
South Africa’s Just Energy Transition Investment Plan (JET-IP) holds promise but must expand beyond infrastructure to include underfunded priorities like community resilience, job creation, and equitable development.
A well-implemented CRB framework can become a powerful lever for democratic climate finance. It allows citizens, civil society, and institutions to hold decision-makers accountable while ensuring that financial flows truly serve the climate and social justice imperatives of the nation.