Generate revenues

Any existing or innovative mechanism (e.g. impact investment vehicles, environmental taxes, etc.) that can generate and/or leverage financial resources for sustainable development. The solutions that can generate new revenues for sustainable development are listed below.

  • Impact Investment

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

  • 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).

  • Remittances (Diaspora Financing)

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

  • 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.

  • Environmental Trust Funds

    Legal entity and investment vehicle to help mobilizing, blending, and overseeing the collection and allocation of financial resources for environmental purposes.

  • Taxes on Tobacco

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

  • Debt for Nature Swaps

    Agreement that reduces a developing country’s debt stock or service in exchange for a commitment to protect nature.

  • 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.

  • 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.

  • 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.

  • 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.

  • Social and Development Impact Bonds

    A public-private partnership that allows private (impact) investors to upfront capital for public projects that deliver social and environmental outcomes in exchange for a financial interest.

  • Green Bonds

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

  • Bioprospecting

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

  • Biodiversity Offsets

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

  • Public Guarantees

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

  • Enterprise Challenge Funds

    Funding instrument that distributes grants (or concessional finance) to profit-seeking projects on a competitive basis.

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