National Treasury invites stakeholders and members of the public to comment on a consultation paper setting out proposals for a Climate Transition Planning and Disclosure Framework for financial institutions in South Africa.
The consultation paper aims to lay the foundations for a framework to guide financial institutions in developing and using credible, effective and context-appropriate transition plans. It seeks to provide clear, practical guidance that supports the financial sector in responding to climate-related risks and opportunities, while contributing to South Africa’s broader climate and development objectives.
The proposed framework recognises that South Africa’s transition to a low-emission, climate-resilient economy must address the interconnected priorities of climate change mitigation, adaptation and a just transition. It seeks to align with international good practice while reflecting South Africa’s national circumstances, policy priorities and sectoral realities.
The role of financial institutions
Financial institutions have an important enabling role in mobilising and directing finance towards South Africa’s climate transition. The country’s investment needs for mitigation, adaptation and a just transition are estimated to average 4.4 per cent of gross domestic product annually through to 2050.
Banks, insurers, asset managers and other investors also rely on information from companies in the real economy to assess climate-related risks, evaluate investment opportunities and make informed financing decisions. Effective transition planning within financial institutions must therefore be supported by credible corporate transition plans and a broader enabling environment.
Such an environment includes coherent policy measures, economy-wide incentives, standardised and accessible data, and proportionate guidance that supports institutions in building the necessary transition planning capacity.
Proposed framework
The consultation paper is structured around three key areas:
Conceptual and policy foundations: An overview of the role of transition plans in managing climate-related risks and opportunities, including relevant international frameworks and emerging good practices.
South African context: An assessment of the financial system’s exposure to climate-related risks and opportunities, together with the sector’s current level of preparedness for transition planning.
Policy proposals: A proposed national framework for financial sector transition plans, including core design principles, key features and the enabling conditions required for effective implementation.
Through this consultation, National Treasury seeks to obtain input from financial institutions, corporates, industry associations, regulators, policymakers, civil society, academia and other interested stakeholders on the proposed direction and design of the framework.
The consultation process is intended to help ensure that the framework is practical, proportionate and responsive to South Africa’s circumstances, while supporting greater consistency and quality in transition planning and disclosure. In doing so, it aims to reinforce the links between institutional strategy, financial decision-making and national development goals, and strengthen the financial sector’s capacity to support a just and resilient transition.
Invitation to comment
National Treasury invites written comments on the consultation paper. Submissions should be directed to Vukile Davidson at transitionplanning@treasury.gov.za.
Closing date: 10 December 2026
Stakeholders are encouraged to provide specific and practical recommendations on the proposed framework, including its design, implementation, proportionality and the enabling conditions needed to support credible and effective transition planning across the financial sector.
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