Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets. The financing solutions that encompass a market transaction are listed below.

  • Biodiversity Offsets

    Measurable conservation outcomes resulting from actions that compensate for significant residual adverse biodiversity impacts arising from development projects.

  • Bioprospecting

    Systematic search for biochemical and genetic information in nature in order to develop commercially-valuable products and applications.

  • Carbon Markets

    Carbon markets aim to reduce greenhouse gas emissions cost-effectively by setting limits on emissions and enabling the trading of emission units.

  • Climate Credit Mechanisms

    Market mechanisms that enable entities, for which the cost of reducing emissions is high, to pay low-cost emitters for carbon credits that they can use towards meeting their emission-reduction obligations. An example is the Clean Development Mechanism.

  • Green Bonds

    Bonds where proceeds are invested exclusively in projects that generate climate or other environmental benefits.

  • Impact Investment

    Investments made with the intention to generate a measurable social and environmental impact alongside a financial return.

  • Lotteries

    Governments and civil society groups use lotteries as a means of raising funds for benevolent purposes such as education, health, preservation of historic sites and nature conservation.

  • Payments for Ecosystem Services

    Payments for ecosystem services (PES) occur when a beneficiary or user of an ecosystem service makes a direct or indirect payment to the provider of that service.

  • Public Guarantees

    Guarantees can mobilize and leverage commercial financing by mitigating and/or protecting risks, notably commercial default or political risks.

  • Remittances (Diaspora Financing)

    Private unrequited transfers sent from abroad to families and communities in a worker's country of origin.

  • Voluntary Standards (finance)

    Standards applicable to the financial sector that capture good practices and encourage the achievement and monitoring of social and environmental outcomes.

Latest blogs

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    A look at the current state of development funding shows a stark contrast between the price tag to eliminate poverty and protect the planet by 2030, and the actual financial resources that are available. Impact investing can close this gap.Read more 

  • What does ‘risk-informed’ development finance really look like?

    How to tackle various forms of risk – from extreme weather events to commodity price shocks, disease outbreaks and over-indebtedness – was high on the agenda of the 2017 Financing for Development (FfD) Forum at the UN. it is unsurprising there is renewed interest in financial instruments and innovations designed to reduce vulnerability to risk – and to help countries cope when crises occur.Read more 

  • Not just more, but better – effective financing of the SDGs

    Bankrolling sustainable development cannot happen through global financing agendas alone, but should instead be built from a bottom-up, holistic and context-driven approach. As countries strive to manage increasingly complex financing flows at the national level, as domestic public and private resources increase, and as the sources of external resources diversify, we need urgent and targeted solutions.Read more 

  • Dollars and 'sense': Paying for our planet

    As it is the International Year of Sustainable Tourism, it is worth noting the role biodiversity and ecosystems play as the backbone of tourism in many places, and the crucial role that the tourism sector can play in conserving biodiversity. This is undeniably a nexus to pursue, particularly for financing effective conservation. Read more 

  • To leave no one behind, Least Developed Countries need new financing tools

    Current domestic resources and ODA combined will be insufficient to finance the 2030 Agenda. Against this background, the 48 Least Developed Countries’ abilities to harness and make effective use of a broader suite of financing instruments to fund their sustainable development becomes a development imperative.Read more 

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