3.3 Subsidies for essential products and services 3.4 Investments in social impactEconomic equity dimension: Affordability of goods and services, and accessibility of goods and services Another mechanism governments use to encourage economic equity in the green and digital transitions is subsidizing essential products and services for target populations. In India, the Deen Dayal Upadhyaya Gram Jyoti Yojana is a government scheme designed to provide continuous electricity supply to rural India. It invested $9.1 billion for rural electrification under the scheme.66 In France, the government subsidized leasing electric vehicles for the poorest 50% of the population. A state subsidy could amount to as much as €13,000 and would fully cover the initial deposit. Monthly payments would vary between €70 and €150, depending on the vehicle model.67 Economic equity dimension: Access to financing and investments Substantial investments are already being made by both the public and private sectors in the green and digital transitions, but social enterprises struggle to access those funds. To overcome this challenge, policy-makers can create investment mechanisms that directly target social enterprises or include social criteria in general transition investments. Germany, for example, opened its existing early-stage loan programme under its European Recovery Program (ERP) to social enterprises and not-for-profit businesses in 2024.68 This way, social enterprises have access to financing in the form of loans up to €125,000. Justice40 in the US BOX 12 Justice40 initiative directed 40% of federal investment benefits to disadvantaged communities in the US, addressing decades of underinvestment and pollution burdens.69 Over fiscal years 2022- 2027, more than $600 billion was allocated, including $4.3 billion in climate pollution reduction grants and $773 million for energy-efficient renovations at properties housing low-income individuals, families and seniors. This initiative advanced community-driven solutions, facilitated equitable access to affordable clean energy, and catalysed job creation in marginalized areas through over 500 federal programmes across 19 federal agencies.70 Further, this initiative is driving US government agencies to enhance data collection and measurement methods to accurately track investments in disadvantaged communities, ensuring effective progress assessment.71 Source: Justice40 Image credit: Sumitomo Mitsui Financial Group Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 24

Unlocking the Social Economy 2025