Policy Tools That Support Transition Into a Green Economy

The document discusses financing as a primary tool for green economy transitions, utilizing grants, loans, and public-private partnerships. It highlights Costa Rica's Payments for Ecosystem Services (PES) and the PSA Solidario program as successful models for reducing deforestation and creating green jobs through fuel and water taxes and international agreements. For Manitoba, the text identifies the primary challenge as limited government budget capacity, suggesting recycled revenues, fossil fuel subsidy reform, and public-private partnerships as potential solutions.

• Costa Rica's Payments for Ecosystem Services (PES) program, managed by the National Forestry Financing Fund (FONAFIFO), pays landowners to conserve, rehabilitate, or regenerate forests and protect environmental services, including greenhouse gas emission reductions, water protection, biodiversity, and ecosystem protection.
• Funding for Costa Rica's PES is sourced from a 3.5 per cent fuel tax, 25 per cent of water tax revenue, multilateral and bilateral agreements (including the World Bank and the governments of Germany and Norway), and private donations.
• The PSA Solidario (Solidarity PES) program allows small-scale farmers in Costa Rica to earn carbon credits by protecting forests and selling them to national industries, offering faster transactions and fewer intermediaries than the national PES.
• Between 1997 and 2012, the national PES program in Costa Rica protected 934 million hectares of forest, and by mid-2012, 68 million hectares were reforested, regenerated, or conserved.
• The primary obstacle to direct green financing in Manitoba and globally is the difficulty of obtaining government funding due to existing budget obligations; proposed alternatives include recycled revenues, fossil fuel subsidy reform, and public-private partnerships.

APA

International Institute for Sustainable Development (2013). Policy Tools That Support Transition Into a Green Economy. https://www.iisd.org/system/files/publications/policy-tools-transition-green-economy-financing.pdf

Chicago

International Institute for Sustainable Development. Policy Tools That Support Transition Into a Green Economy. 2013. https://www.iisd.org/system/files/publications/policy-tools-transition-green-economy-financing.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Policy Tools That Support Transition Into a Green Economy |date=September 2013 |url=https://www.iisd.org/system/files/publications/policy-tools-transition-green-economy-financing.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2013policy, author = {{International Institute for Sustainable Development}}, title = {{Policy Tools That Support Transition Into a Green Economy}}, institution = {International Institute for Sustainable Development}, year = {2013}, month = sep, url = {https://www.iisd.org/system/files/publications/policy-tools-transition-green-economy-financing.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }