Market-Based Mechanisms

Market-based transactions, in which consumers pay for the costs of securing or enhancing ecosystem services, are a mechanism for conservation finance that holds broad appeal. This appeal is based on the potential to generate win-wins for conservation and private enterprises, and to secure a greater pool of funding for preserving or enhancing natural capital than would be available through government or philanthropic funding. Here we focus on four case studies representing two types of market-based mechanisms: eco-certification and impact investing for ecosystem services.