Development finance
The significant amount of capital required for just transitions in developed and developing economies will not be funded solely through private capital. As many of the financial transactions involved in a just transition will be outside the realms of standard commerciality or involve immature markets, development finance institutions play a crucial role in market-making and in financing those activities that do not have clearly defined revenue streams. Thus, the role of development finance via its many conduits will be a key pillar to the work of the Just Transition Finance Lab, especially in emerging markets.
The Lab will work with collaborators such as the multilateral development banks, development finance institutions and national development banks to mobilise private and public capital for a just transition. We will publish case studies on best practice in just transition transactions and develop policy recommendations, financial instruments and strategies on how best to deploy public capital in complex economies to achieve maximum mobilisation of private capital for just transition activities.