Asset managers are in an opportune position to assist South Africa in its transition to a low-carbon, climate-resilient economy. Constrained by a weak pipeline of scalable renewable energy projects, asset managers may be missing opportunities within the broader scope of the just transition. The renewable energy sector, though promising, is marred by a scarcity of scalable projects required for the transition, suggesting a need for a shift in approach.

As the market for financing the just transition gathers pace, critical opportunities are emerging for asset managers to lead the charge. By embracing innovative financing models and broadening their investment horizons, they can unlock a pipeline of investment that promises substantial returns and propels the country towards its ambitious climate goals.

This thought leadership paper highlights the challenges and opportunities at the intersection of investment and sustainability, advocating for a strategic re-evaluation that could redefine the role of asset managers in South Africa’s just transition.