NEWS & SNIPPETS
ESG INVESTMENTS SURGE
Sovereign wealth funds (SWF) are the latest class of investors increasingly focusing on sustainability-centred products. Their involvement comes as investors continue to push asset managers to focus on ESG products. According to data acquired by Finbold, sovereign wealth funds investments in the ESG space globally surged 215.27% between 2020 and 2021, from $7.2-billion to $22.7-billion. Over the same period, the number of deals increased from 19 to 37. In 2021, SWFs’ involvement in the oil and gas space dropped 46.92% to $6.9 billion from 2020’s figure of $13-billion. Last year also recorded the lowest deals in oil and gas at eight. The report highlights the implications of increased SWFs investment in various sustainable-focused funds. According to the research report: “Last year’s growth indicates that the ESG
space has a financial appeal for investors, and SWFs play a crucial role. In general, the SWFs are uniquely positioned to promote the global environmental, ESG agenda and investing in certain products is the first step.”
COCA-COLA SUS
By Xolile Mtembu, IOL Coca-Cola Africa has announced the launch of JAMII, a new platform that focuses on sustainability in Africa. JAMII is a Swahili word that means community, society and people. The platform houses new and existing sustainability initiatives, and the company hopes to attract like-minded partners to help accelerate the on-the-ground impact of its initiatives. JAMII will expand on past accomplishments in three areas: water stewardship, economic empowerment of women and youth and waste management.
TREASURY ON ENERGY PREMIUM NOTICE
SUSTAINABILITY-LINKED CREDIT FACILITY
Imperial is pleased to announce the successful conclusion of a R1-billion sustainability-linked revolving credit facility with Nedbank Corporate and Investment Banking (CIB). Nedbank developed a R1-billion sustainability-linked debt instrument under which Imperial aims to deliver on mutually pre-agreed sustainability performance targets over the debt term. The savings obtained through this ESG facility from Nedbank will be deployed into green projects that will contribute to Imperial achieving its ESG ambitions. According to Brad Maxwell, managing executive of investment banking, CIB, “Nedbank increasingly uses ESG indicators to identify opportunities it can progress in partnership with its clients. The Imperial transaction is an example of one such opportunity and has been implemented at a time when Imperial is focusing its business operations to become the logistics and market access gateway to Africa.”
GERMAN GRANT FOR GREEN HYDROGEN
Minister of Finance published a notice for the Renewable Energy Premium in the government gazette (Gazette No: 45654) last year for Section 6(2) of the Carbon Tax Act (No. 15 of 2019). The Carbon Tax Act makes provision for taxpayers conducting electricity generation activities to offset the costs of purchasing additional renewable electricity against their carbon tax liability for the first phase of the carbon tax until December 2022. A notice setting out the renewable energy premium rates per kilowatt hour for eligible renewable energy technologies for the 2019 tax period was gazetted in June 2020 (Gazette No. 43453). Taxpayers, requested clarity on the rates to be used to determine the tax deduction for the 2020 tax period, as the applicable renewable energy premium rates were limited to the 2019 tax period. To address the concerns raised by taxpayers, a draft renewable energy premium notice was published for public comment in August 2021 clarifying that the renewable energy premium rates were applicable for the 2020 tax period. The gazetted 2021 Notice for the Renewable Energy Premium gives effect to the removal of the limitation of the tax period for which the rates would be applicable. Any future adjustments of the renewable energy premium will be made by way of an announcement in the Budget. The gazette: (www.treasury.gov.za).
South Africa’s green hydrogen economy could benefit from as much as €40-million (~R702-million) in grant funding from the German government. The Presidency has partnered with German development agency GIZ for the initiative H2.SA. The initiative specifically promotes the development of a green hydrogen economy in South Africa through the development of a strategic and regulatory framework. The German Federal Ministry of Economic Cooperation and Development has offered €12.5-million (~R220-million) grant funding support for H2.SA. About €2.5-million (~R44-million) of the grant funding is committed to the South African German Energy programme (SAGEN)-CET with and €25-million (~R440-million) is allocated to a financial cooperation project, Promotion of Green Hydrogen. The German government, through its development bank KfW, has made a separate commitment of €200-million (~R3.5-billion) of concessional finance for investments in the energy sector.
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