Water quality markets

A range of market mechanisms based on the "cap and trade" system that are designed to reduce the cost of water quality improvement and management. These markets provide for economically flexible measures to reduce water pollution generated by point (i.e., industrial) and non-point (i.e., agricultural) sources. Impacts of reduced water quality on biodiversity typically include excess nutrients such as nitrogen and phosphorous, water temperature (for sensitive fish habitat), and sediment loads.  

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Transport

Transport

Water

Water

Countries:

Developer fees / water infrastructure

Development or "Tap" fees are fees charged often by the water utility for new housing or industrial developments to cover the cost of infrastructure to serve the new development and can include requirements for water supply permits (in markets with water supply controls) or in lieu payments to cover the costs of aquiring additional supply permits.  These one-time fees are often integrated into the building permitting process. The fee structure can be designed to influence water demand.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Tourism

Tourism

Water

Water

Water abstraction charges

A user fee charged for the diversion or use of water from lakes, rivers, and underground sources and applied to decrease waste and increase regulation and measurement.  Where water abstraction is regulated, there is greater opportunity for water supply markets. 

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Protected Areas

Protected Areas

Water

Water

Water tarrifs

Also called "water rates," fees collected through water utilities and other suppliers of water to consumer including households and businesses. The tarrifs are a cost recovery mechanism and are targeted to pay for the costs of water treatment, storage, transport, recovery and treatment of wastewater, and administrative costs. Water tarrifs can also be applied to cover the costs of watershed and wetland maintenance and protection, adding significant additional financing for biodiversity. 

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Transport

Transport

Water

Water

Tarrifs, fees and taxes in the water sector

General (local and national) taxes and special levies charged in exchange for a service, for example water and wastewater bills, property assessments or fees/charges applied to improve the quality of the water, and developer fees which may fund water infrastructure and watershed rehabilitation.

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Risk

Any solution that invovles the transfer of risks between two or more parties, e.g. a guarantee.

Risk

Public/Private
Public

Public

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Water

Water

Other water fees and charges

Water related fees and charges for use and management other than those described elsewhere in this catalogue.

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Protected Areas

Protected Areas

Tourism

Tourism

Water

Water

Wetland use fees

Fees and permit expenses allowing access for commercial and non-commercial use of wetlands.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Protected Areas

Protected Areas

Tourism

Tourism

Water

Water

Wastewater fees

Fees charged for sewer and wastewater discharge that are designed for cost recovery. The fee structure may include differential fees for private vs commercial users.  Wastewater discharge permit fees may include some economic costs of ecosystem damage. 

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Other

Other

Tourism

Tourism

Transport

Transport

Water

Water

Storm water runnoff fees and incentive systems

Tariffs and other financial mechanisms designed to incentivize private property owners to install measures to increase ground permeability during precipitation events in order to reduce runoff and the resulting need to build additional water treatment facilities. Some cities have been testing offset systems that allows trading of water absorption credits among urban and periurban areas operating in the same watershed. 

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Water

Water

Countries:

Water quality markets

A range of market mechanisms based on the "cap and trade" system that are designed to reduce the cost of water quality improvement and management. These markets provide for economically flexible measures to reduce water pollution generated by point (i.e., industrial) and non-point (i.e., agricultural) sources. Impacts of reduced water quality on biodiversity typically include excess nutrients such as nitrogen and phosphorous, water temperature (for sensitive fish habitat), and sediment loads.  

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Transport

Transport

Water

Water

Countries:

Developer fees / water infrastructure

Development or "Tap" fees are fees charged often by the water utility for new housing or industrial developments to cover the cost of infrastructure to serve the new development and can include requirements for water supply permits (in markets with water supply controls) or in lieu payments to cover the costs of aquiring additional supply permits.  These one-time fees are often integrated into the building permitting process. The fee structure can be designed to influence water demand.

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Tourism

Tourism

Water

Water

Water abstraction charges

A user fee charged for the diversion or use of water from lakes, rivers, and underground sources and applied to decrease waste and increase regulation and measurement.  Where water abstraction is regulated, there is greater opportunity for water supply markets. 

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Protected Areas

Protected Areas

Water

Water

Water tarrifs

Also called "water rates," fees collected through water utilities and other suppliers of water to consumer including households and businesses. The tarrifs are a cost recovery mechanism and are targeted to pay for the costs of water treatment, storage, transport, recovery and treatment of wastewater, and administrative costs. Water tarrifs can also be applied to cover the costs of watershed and wetland maintenance and protection, adding significant additional financing for biodiversity. 

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Realign

Any measure that can re-orient and realign existing financial flows towards biodiversity conservation. 

Realign

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Sector

Agriculture

Agriculture

Energy

Energy

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Transport

Transport

Water

Water

Non-timber forest product harvesting licenses and fees

Licenses and other fees associated with the collection, transport and sale of Non-Timber Forest Products including mushrooms, latex (sap), honey, flowers, tubers, etc.

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Sector

Agriculture

Agriculture

Forests

Forests

Other

Other

Protected Areas

Protected Areas

Transport

Transport

Forestry transportation fees

Forestry transportation fees can be used in addition to stumpage or other fees as either a cost recovery tool to pay for roads and other transport infrastructure, or as a means to improve regulation and control of the industry.  It should be noted that any fee that raises cost of production or transport may influence the market price and trading volumes. For example, export levies capture forestry revenue and have been used to encourage increased domestic value-added wood industries by charging much higher levies on raw wood as compared to furniture. 

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Sector

Forests

Forests

Trade

Trade

Transport

Transport

Other forestry royalties

Other types of royalties can be paid for forests and forestry products including collection fees for Non Timber Forest Products (NTFP, see below) such as mushrooms, fruit, honey, etc. recreational exploitation (hotels, restaurants, etc.), access (pipelines, telephone towers, electricity, etc.), and real estate (e.g. home ownership). 

Result

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Sector

Forests

Forests

Protected Areas

Protected Areas

Tourism

Tourism

Forestry concession fees

Fees paid for access to exploit forestry areas usually under public ownership and government control.  Often there is a requirement for the concessionaire (holder of the concession) to produce a management plan that is approved by the land owner. Concession fees and systems allow for private long term planning if the concessions are of adequate length to make a rotational forestry practice feasible.  Concession fees are based on an economic assessment of the value of the timber or other forest resources (which can include non-use values such as recreation). 

Result

Deliver

Any measure or strategy that can enhance cost-effectiveness/efficiency, synergies and/or favour a more equitable distribution of resources.

Deliver

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Forests

Forests

Protected Areas

Protected Areas

Tourism

Tourism

Forestry stumpage fees

A fee paid for the right to harvest timber from a given area. Typically paid to a private land owner or the government (if the land is public land).  Stumpage fees are determined by a combination of fixed or market prices and the volume harvested (e.g. cubic metres, board feet, tons).

Result

Avoid

Any measure that can prevent or reduce future investment needs by eliminating/amending existing counter-productive policies and expenditures (e.g. taxes on sugar content or tobacco).

Avoid

Generate

Any existing or innovative mechanism that can generate and/or leverage financial resources for biodiversity.

Generate

Type

Fiscal

Any solution that involves a fiscal reform, i.e. changes in taxation or the modification of a subsidy's regime.

Fiscal

Market

Any solution that involves a market transaction, e.g. ecosystem services and carbon markets.

Market

Regulatory

Any solution that involves a regulatory reform, i.e. the imposition of a certain behaviour through the law or a regulation.

Regulatory

Public/Private
Public

Public

Private

Private

Sector

Forests

Forests

Protected Areas

Protected Areas