THE ROLE OF GREEN BOND FINANCING IN ADVANCING RENEWABLE ENERGY DEVELOPMENT AND THE LOW-CARBON TRANSITION IN SOUTH AFRICA: EVIDENCE FROM NEDBANK

This paper examines the outcomes of green bond-funded projects on renewable energy development and South Africa’s transition to a low-carbon, climate-resilient energy system. Using Nedbank’s 2019Renewable Energy Bonds as a case study, the research explores how stakeholders perceive the role of innovative financing mechanisms in enabling renewable energy infrastructure and supportingsocio -economic transformation. Amid South Africa’s escalating climate impacts, energy insecurity, and national energy-reduction commitments, there is an increasing need for inclusive financing approaches to support the energy transition. A qualitative case study approach is adopted, combining semi-structured interviews with stakeholders in sustainable finance, renewable energy, and communities surrounding funded projects, with secondary data from Nedbank’s Green Bond Impact Reports (2020–2023) to assess stakeholder perceptions alongside quantified CO2 emissions avoided. Findings indicate that green bonds support renewable energy development by fostering private sector participation and advancing climate-responsive infrastructure aligned with Environmental, Social, and Governance (ESG) standards. However, several constraints undermine their broader impact, including the exclusion of high-emission but economically essential industries such as mining, limited integration of socio -economic benefits for historically marginalised communities, and barriers created by issuance costs, compliance requirements, and market practices that favour established institutions, thereby restricting market diversity and the scale of green financing. Despite its single-issuer focus, the study highlights the need for targeted government incentives, regulatory adjustments, and capacity-building measures to reduce entry barriers and strengthen the inclusivity and effectiveness of South Africa’s green finance ecosystem. The findings contribute empirical evidence on the role and limitations of green bonds within South Africa’s developing green finance market and other comparable emerging economies.