NewClimate Institute was supported by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) to analyse the current situation of results-based financing (RBF) approaches in climate policy, focussing in particular on their application in the context of current and future carbon and climate finance initiatives. The resulting report provides a clearer definition of what RBF means in the context of climate finance and specifically highlights how climate and carbon finance can benefit and support each other in the design of RBF mechanisms catalysing effective climate action. The analysis particularly focussed on RBF’s potential role as a linking concept between carbon market and non-market-based climate finance activities. Rather than continuing their parallel existence, carbon market and non-market climate finance could be brought together, using available climate finance to close the current carbon market finance gap, apply tools and methods of market-based approaches (e.g. CDM) to ensure their continuity and at the same time facilitate the implementation of climate finance supported mitigation.

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