Building a Regenerative, Solidarity Economy: Lessons in Just Transition Finance

Title: Building a Regenerative Finance Ecosystem for a Just Transition

In a world where mistakes are often met with harsh consequences, the regenerative finance movement is challenging the status quo by embracing experimentation and risk-taking to advance a solidarity economy. Led by organizations like the Climate Justice Alliance (CJA), practitioners are redefining traditional notions of investing to support projects that promote climate justice and community empowerment.

The concept of a “just transition” framework, developed over a decade ago, serves as a roadmap for addressing the root causes of the climate crisis and building a regenerative economy. Through strategies like fighting the bad, building the new, and changing the rules, the movement is gaining momentum and reshaping the narrative around climate justice.

One key initiative, the Our Power Loan Fund, aims to mobilize $100 million in investments to support climate justice goals in frontline communities. Unlike traditional loan funds, the Our Power Loan Fund is democratically governed, with projects assessed based on their readiness and potential impact on the community.

Building a democratic loan fund comes with its challenges, from navigating state regulations to designing flexible loan structures that cater to diverse community needs. Despite these obstacles, organizations like CJA are committed to creating systems that prioritize community ownership and collective decision-making in the financial realm.

Looking ahead, the focus is not just on funding successful community-owned businesses but also on driving policy and cultural change. By fostering partnerships, empowering project stewards, and engaging in ongoing education, the regenerative finance ecosystem is laying the groundwork for a more equitable and sustainable future.

As the movement continues to evolve, the goal remains clear: to build a regenerative, solidarity economy that centers community well-being and collective empowerment. Through collaboration, innovation, and a commitment to justice, the path towards a just transition is paved with possibilities for a better world.
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