A SOUTH African entrepreneur has established what he claims is the country’s first "green" financing company solely devoted to funding sustainable projects.

But local banks were already funding projects that protect the environment and promote renewable energy, among other initiatives, Standard Bank SA CEO Sim Tshabalala said this week. He said Standard Bank was considering a pipeline of commercial renewable and alternative energy projects in SA and the region.

The new company, Water Financial, led by banker and entrepreneur Chris Loker, was involved in financing sustainable projects worth R65m.

Mr Loker said sustainable finance was new to Africa but the 10 best-known sustainable banks globally had assets of around $30bn. For example, Triodos Bank, a European sustainable bank, had over the past few years built assets under management of $5bn, with annual growth of 25% and consistent profits. "Triodos has taken a keen interest in (Water Financial)," he said.

Meanwhile, Mr Tshabalala said Standard Bank was already funding "green" projects as part of its lending activities.

The group’s award-winning carbon finance and trading team had financed projects which lower carbon emissions around the world, including southeast Asia, Brazil and Africa, through strategic partnerships.

"Standard’s approach to green financing has been to see green financing as part of doing good business by our operating units, not as something separate and different," he said yesterday.

Mr Tshabalala said funding of renewable energy and low carbon growth was taking place throughout the group.

"Our energy finance team is working on a significant pipeline of commercial renewable and alternative energy projects in SA and our neighbouring countries.

"The team has built up the expertise to undertake both financing and advisory work. They are formally mandated on a significant number of potential projects which have been approved within our group structures," Mr Tshabalala said.