Report: International Guidebook of Environmental Finance Tools
A Sectoral Approach: Protected Areas, Sustainable Forests, Sustainable Agriculture and Pro-Poor Energy
The International Guidebook of Environmental Finance Tools provides guidance on developing and implementing the most commonly used, widely applicable, and potentially high-impact environmental finance tools. The Guidebook’s review tools that support sustainable agriculture and forestry, pro-poor energy access, and protected areas. Climate change is addressed through the inclusion of carbon-based finance mechanisms in all four sectors. The main tools are: fees, loans, payments for ecosystem services and market-based mechanisms, clean development mechanism and voluntary emission reductions, subsidies and taxes.
- Only a handful of financial tools — loans, fees and subsidies — are implemented in most cases.
- Even the most straightforward tools can take years to successfully implement
- Rather than creating new and complex tools, decision makers should look to maximize impacts by improving the most common tools already in use.
- Tools do not stand alone. Effective combining and sequencing may mean the difference between success and failure.
- Financial, technical and infrastructural capacity development is essential to the sustainability of the tools
- An important lesson: simpler = easier = faster