Carbon markets aim to reduce greenhouse gas emissions cost-effectively by setting limits on emissions and enabling the trading of emission units.
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.
Approach for projects, organizations, entrepreneurs, and startups to raise money for their causes from multiple individual donors or investors.
Insurance schemes covering—against a premium—the costs incurred by the insured entity from extreme weather and natural disasters.
Legal entity and investment vehicle to help mobilizing, blending, and overseeing the collection and allocation of financial resources for environmental purposes.
Bonds where proceeds are invested exclusively in projects that generate climate or other environmental benefits.
Investments made with the intention to generate a measurable social and environmental impact alongside a financial return.
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.
Guarantees can mobilize and leverage commercial financing by mitigating and/or protecting risks, notably commercial default or political risks.
Any fee, charge or tax charged on the extraction and/or use of renewable natural capital (e.g. timber or water).
Standards applicable to the financial sector that capture good practices and encourage the achievement and monitoring of social and environmental outcomes.