Connecting the dots – Results-based financing in climate policy

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This study clarifies the definition of results-based financing (RBF) and in particular its role in the context of climate policy. The publication is aimed at readers from the carbon markets and climate finance communities alike. It facilitates a common understanding of what RBF as a financing modality involves and is therefore meant to also be a good starting point for readers looking into this topic for the first time. An overview of results-based finance options and opportunities for linking market and non-market approaches is provided. Combining carbon market and non-market climate finance, rather than continuing their parallel existence, results in benefits from synergies from a methodological as well as financial perspective. Based on RBF experiences in both areas, it is shown how climate finance and carbon markets could learn from each other in order to further improve and result in more effective mitigation impacts for the benefit of the climate.

Contacts for further information: Carsten Warnecke, Frauke Röser