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THE SCALING UP OF DEVELOPMENT FINANCE INSTITUTIONS IN CLIMATE FINANCE PROVISION TO SUPPORT LOCALISATION AND WORKER TRANSITIONS
This research paper by the Institute for Economic Justice (IEJ) examines the role of Development Finance Institutions (DFIs) in providing climate finance for South Africa's Just Energy Transition (JET). It focuses on the Industrial Development Corporation (IDC), arguing that its current self-financing model and commercial risk appetite hinder its ability to provide the 'patient capital' necessary for green industrialisation and worker transitions. The paper proposes a shift toward recapitalisation via fiscal and monetary instruments, more concessional lending, and democratised governance to align the IDC with socially just and worker-centred climate goals.
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Document type: Research paper