Treasury seeks public comment on climate plans for financial sector

National Treasury is asking the public, financial companies and other interested groups to give feedback on a draft framework that would guide how the country’s financial sector plans for and reports on the shift to a low-emission economy, SAnews reported.

The consultation paper is meant to set the groundwork for a national approach to “transition plans”. These are the roadmaps that financial institutions use to manage the risks and opportunities that come with climate change. Treasury says the aim is practical guidance that also supports South Africa’s wider climate and development goals.

Why the financial sector matters

Treasury says banks, insurers, asset managers and other investors help steer money towards the climate transition. It estimates that South Africa will need to spend an average of 4.4% of GDP every year until 2050 on cutting emissions, adapting to climate impacts and ensuring a just transition.

These institutions also depend on information from companies in the wider economy when they weigh climate risks and decide where to put their money. Treasury argues that good planning inside financial firms therefore needs credible plans from the companies they deal with, as well as a supportive environment. That environment would include consistent policies, incentives across the economy, standardised and easily accessible data, and guidance that is proportionate to each institution’s size and capacity.

What the paper covers

The document is built around three areas:

• The concepts and policy background, including the role of transition plans, international frameworks and emerging good practice.
• The South African context, including how exposed the financial system is to climate risks and opportunities, and how ready it is to plan for the transition.
• Policy proposals for a national framework, covering design principles, key features and the conditions needed to make it work.

Treasury says it wants input from financial institutions, companies, industry bodies, regulators, policymakers, civil society and academics. It wants the final framework to be practical, proportionate and suited to local conditions, and to improve the consistency and quality of transition planning and disclosure.

How to take part

Written comments can be sent to Vukile Davidson at [email protected]. The closing date is 10 December 2026.

Treasury has encouraged respondents to be specific and practical. It is looking for recommendations on the framework’s design, how it would be implemented, whether it is proportionate, and what conditions are needed for credible planning across the sector.

What this means for you

Although the framework is aimed at financial institutions, the consultation is open to ordinary members of the public. How banks and insurers handle climate risk can eventually affect lending, investment decisions and the financing of projects that matter to jobs and communities. Anyone who wants to have a say has until 10 December 2026 to do so.

This story is based on reporting by SAnews.