Regulatory

 

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation. The financing solutions that encompass a regulatory reform are listed below.

Biodiversity offsets

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

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 to meet emission-reduction obligations.

Concessions (Protected Areas)

Concessions allow people to use land or property in a protected area or natural site for a specified purpose, usually in exchange for a fee.

Disaster risk insurance

Insurance schemes covering—against a premium—the costs incurred by the insured entity from extreme weather and natural disasters.

Ecological fiscal transfers

Integrating ecological services means making conservation indices (e.g. size of protected areas) part of the fiscal allocation formula to reward investments in conservation.

Entrance and activity fees

Tourists pay fees for access to a protected area. The revenues can contribute to conservation through retention by protected areas, revenue sharing agreements, and public transfers.

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.

Taxes on fuel

The sale tax any individual or firm who purchases fuel for his/her automobile or home heating pays. Fuel taxes can reduce the consumption of fossil fuels and greenhouse gas emissions while generating public revenues.

Taxes on pesticides and chemical fertilizers

Taxes on certain pesticides and chemical fertilizers can mobilize fiscal revenues while mitigating the negative effects associated with pesticide/fertilizers application and promoting sustainable agriculture practices.

Taxes on renewable natural capital (water; timber)

Any fee, charge or tax charged on the extraction and/or use of renewable natural capital (e.g. timber or water).

Taxes on tobacco

Excise taxes on tobacco products can raise fiscal revenues, improve health and well-being, and address market failures.

Related blogs

The sum needed to achieve the 2030 Agenda is unprecedented. How can governments effectively mobilise and manage money for real development results?

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…

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…

As today’s celebration coincides with 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 equally…