National Treasury Publishes Sustainable Finance Use of Proceeds Framework

Posted 01 June 2026 Written by Acts Online
Category National Treasury

Brought to you by SA Legal Academy: National Treasury has published its Sustainable Finance Use of Proceeds Framework, establishing the governance, eligible categories, and reporting principles for the state’s issuance of green, social, and sustainability financing instruments.

In terms of National Treasury’s strategic funding objectives, the framework outlines how the national government intends to use proceeds from sustainable financing instruments—including bonds, loans, and private placements—to fund new and existing projects that deliver clear environmental or social benefits.

The framework was developed in consultation with S&P Global Ratings, which has published an independent second-party opinion. The design of the framework is informed by international best practice, specifically aligning with the guidelines of the International Capital Market Association (ICMA) and the Loan Market Association (LMA).

Key structural elements detailed in the framework include:

  • Eligible Categories: Clear definitions of what constitutes green and social projects qualified for funding.
  • Governance Arrangements: Internal evaluation, selection, and management processes for the allocation of proceeds.
  • Reporting Principles: Requirements for transparent allocation and impact reporting to investors and the public.

The implementation of these financing instruments remains subject to internal readiness processes within National Treasury. Over time, the framework will be expanded to provide the flexibility to access both project-based and target-linked instruments.

What this means for you, your business, or your clients

  • For yourself: No direct individual compliance obligations; however, professionals in treasury, advisory, and corporate finance must familiarise themselves with these sovereign standards to align their advisory capabilities.
  • For your business: Financial institutions, asset managers, and legal practices advising on public debt or state-linked infrastructure projects must integrate these framework criteria into their compliance and investment screening processes.
  • For your clients: Corporate and municipal clients seeking to partner with the state on green or social infrastructure projects must ensure their project proposals and reporting capabilities align with the newly defined eligibility and governance criteria to secure funding.

Originally published at https://legalacademy.co.za/news/read/government-finance-use-of-proceeds-framework-published

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