Green measures to reduce insurance premiums

Companies operating in fishing and other economic sectors with risk of high impact on natural assets need to insure their operations to better manage commercial risks. The insurance companies can offer those enterprises discounts on premiums if they adopt green measures that both contribute to mitigating the risks incurred by the insurers and produce environmental benefits. These green measures can effectively realign company investment to more sustainable practices. Another example is discounts on fire insurance premiums in South Africa for private land owners who remove high fire risk invasive species from their land.

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

Realign

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

Realign

Type

Risk

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

Risk

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Countries:

Disaster risk insurance

Insurance schemes that cover– against a premium– financial losses due to extreme weather and natural disasters (i.e. such as earthquakes, floods). If the event occurs, the insurer refunds a percentage of the loss. Insurance is widely used to increase households' and enterprises' resilience to shocks. Forests and other natural assets can be insured.

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

Type

Risk

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

Risk

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Green measures to reduce insurance premiums

Companies operating in fishing and other economic sectors with risk of high impact on natural assets need to insure their operations to better manage commercial risks. The insurance companies can offer those enterprises discounts on premiums if they adopt green measures that both contribute to mitigating the risks incurred by the insurers and produce environmental benefits. These green measures can effectively realign company investment to more sustainable practices. Another example is discounts on fire insurance premiums in South Africa for private land owners who remove high fire risk invasive species from their land.

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

Realign

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

Realign

Type

Risk

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

Risk

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Countries:

Debt-for-nature swaps

Through debt restructuring agreements, governments are able to write off a proportion of their foreign held debt. The savings accrued will be channelled into domestic conservation initiatives and climate adaptation programmes. This often entails the establishment of a Conservation Trust Fund to channel the funds. Debt-for-nature swaps can target both official and commercial lending, with the former being the most common scheme.

Result

Generate

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

Generate

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Grant

Any solution that invovles the allocation of a grant. This includes private donations and Official Development Assistance.

Grant

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Finance

Finance

Fishing

Fishing

Forests

Forests

Protected Areas

Protected Areas

Tourism

Tourism

Crowd funding

The practice of securing funding for a project or business venture by a dispersed group of people: the crowd. It takes places via online platforms that connect the investor or the donor with the project owner without the intermediation of a financial organization. Different platforms coexist: reward-based where individuals support campaigns and receive some kind of reward in return; donation-based where there is no expectation to receive a tangible benefit; equity-based where individuals invest and receive equity-like shares in return; and lending-based where individuals lend money and expect the repayment of a principal with or without interest.

Result

Generate

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

Generate

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Grant

Any solution that invovles the allocation of a grant. This includes private donations and Official Development Assistance.

Grant

Market

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

Market

Public/Private
Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Manufacturing

Manufacturing

Mining

Mining

Protected Areas

Protected Areas

Tourism

Tourism

Transport

Transport

Water

Water

Technology upgrade and maintenance

Business strategies aimed at switching to more cost-effective and environmentally friendly technologies (e.g. fuel efficient cars, energy efficient buildings, improved agricultural methods, etc.) Maintenance strategies are also included when they can expand the life of certain assets. While cost-effective, these strategies might require an initial capital expenditure. They are usually encouraged through internal company policies, regulatory measures or through providing targeted access to capital.

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

Realign

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

Realign

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

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

Mining

Mining

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Public guarantees

Guarantees can mobilize and leverage commercial financing by mitigating and/or protecting risks (such as political, regulatory, and foreign-exchange risk), notably commercial default or political risks. A public guarantee can encourage financial institutions, i.e. commercial and development banks, to offer loans to new companies. Public guarantee programs are often part of bilateral or multilateral development assistance and seek to address market failures without unintentional distortion of existing banking systems and financial markets. The scheme can be attached to biodiversity related businesses.

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

Realign

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

Realign

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Market

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

Market

Risk

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

Risk

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Corporate supply chain management

Sustainable corporate supply chain management refers to targeted initiatives meant to improve the sustainability, cost effectiveness, and risk profile of a company's supply chain. It includes a wide range of actions that combine reducing environmental impacts with efforts that can also save money, reduce value chain volatility (price and supply), improve supplier relations, better manage brand reputation, and reduce other political, social and environmental risks. Examples include avoiding deforestation in raw materials sourcing, tracking or greening commodity sources, replacing toxic or otherwise harmful materials, 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

Type

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

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Corporate sustainability

The integration of sustainability thinking and practice in business operations helps companies live up to their responsibilities as global citizens and local neighbors and can significantly strengthen business resilience and profitability. Effective corporate sustainability can offer clear business benefits for operations, reputation, new products and markets, and finance and can significantly reduce business risks. A vast literature and international standards can help companies to follow more sustainable business practices.

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

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Grant

Any solution that invovles the allocation of a grant. This includes private donations and Official Development Assistance.

Grant

Market

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

Market

Risk

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

Risk

Public/Private
Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Technology upgrade and maintenance

Business strategies aimed at switching to more cost-effective and environmentally friendly technologies (e.g. fuel efficient cars, energy efficient buildings, improved agricultural methods, etc.) Maintenance strategies are also included when they can expand the life of certain assets. While cost-effective, these strategies might require an initial capital expenditure. They are usually encouraged through internal company policies, regulatory measures or through providing targeted access to capital.

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

Realign

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

Realign

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

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

Mining

Mining

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Corporate supply chain management

Sustainable corporate supply chain management refers to targeted initiatives meant to improve the sustainability, cost effectiveness, and risk profile of a company's supply chain. It includes a wide range of actions that combine reducing environmental impacts with efforts that can also save money, reduce value chain volatility (price and supply), improve supplier relations, better manage brand reputation, and reduce other political, social and environmental risks. Examples include avoiding deforestation in raw materials sourcing, tracking or greening commodity sources, replacing toxic or otherwise harmful materials, 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

Type

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

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Corporate social responsibility tax

Special form of government taxation that requires (usually large) companies to spend a percent of their profits every year on corporate social responsibility (CSR) - usually through financing NGOs or paying into government social investment funds. The main difference from traditional taxations is that the companies will be able to decide where to invest and implement programs. This solution has been piloted in only a few countries (e.g. India, Seychelles), with limited documented evidence of its effectiveness relative to other approaches.

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

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Protected Areas

Protected Areas

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Private guarantees

Guarantees can mobilize and leverage commercial financing by mitigating and/or protecting risks (such as political, regulatory, and foreign-exchange risk), notably commercial default or political risks. The guarantee functions as a promise by the guarantor to the lender that, in the event that the borrower defaults on payment, the guarantor will repay the lender a specified proportion of the foregone principal. This allows traditional lenders to take risks and learn new markets outside current risk profiles. The scheme can be attached to biodiversity related businesses, which are often operating in non-mature markets and lack financial records. Private companies and Non-government organizations can extend these guarantees. 

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

Realign

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

Realign

Type

Debt/Equity

Any solution that invovles an obligation or liability to make a payment and/or the acquisition of ownership rights (equity, property or financial asset).

Debt/Equity

Market

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

Market

Risk

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

Risk

Public/Private
Public

Public

Private

Private

Sector

Agriculture

Agriculture

Energy

Energy

Finance

Finance

Fishing

Fishing

Forests

Forests

Infrastructure

Infrastructure

Manufacturing

Manufacturing

Mining

Mining

Other

Other

Tourism

Tourism

Trade

Trade

Transport

Transport

Water

Water

Countries: