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The report examines the use of green tax incentives—such as income tax holidays and import duty relief—to address a USD 2.2 trillion annual investment gap in emerging and developing economies. It argues that while these tools can redirect capital toward climate-aligned projects, profit-based incentives often fail early-stage projects, and poorly designed measures can erode public revenue without generating meaningful investment.

The mid-term review finds that the project is generally on track to achieve its outcomes, particularly in enhancing legal capacity for forest communities in Liberia and Gabon and influencing the EU Deforestation Regulation (EUDR). Key achievements include the development of equitable contract templates in Liberia, increased women's leadership in forest governance, and exceeding advocacy targets in the EU. However, the report identifies gaps in structured stakeholder engagement, limited private sector involvement, and a need for direct livelihood support to ensure long-term sustainability. Political instability in Gabon has delayed some legislative reforms, and the review recommends developing a formal exit strategy and improving the results framework to better track qualitative changes.

The GCF has become the largest multilateral climate finance contributor to African states, but its portfolio is heavily weighted toward mitigation (59%) over adaptation (41%), despite urgent regional needs. While the fund has successfully leveraged co-financing, particularly from Multilateral Development Banks, it faces significant efficiency challenges, including cumbersome accreditation and approval processes, language barriers for non-Anglophone states, and a paucity of Direct Access Entities (DAEs). The report recommends a strategic shift toward adaptation, streamlining access for Least Developed Countries (LDCs) and Fragile, Conflict and Violence (FCV) states, and increasing regional presence in Africa.

The document argues that strengthening 'comando e controle' (command and control) is essential for protecting Brazil's native vegetation, which is critical for environmental conservation, international reputation, and the competitiveness of the agribusiness sector. It highlights the success of the DETER system in the Amazon, which helped reduce annual forest loss by over 80% and avoided the loss of more than 2 million hectares per year during its first five years. However, it identifies gaps such as the inability to detect small-scale deforestation (under 25 hectares) and the lack of monitoring for secondary vegetation. The authors recommend developing technology for small-scale detection and forest degradation, monitoring forest regeneration, expanding remote sensing to all national biomes, and implementing land tenure regularization in public lands and agrarian reform settlements.

The document outlines the regulatory landscape of cosmetic pesticides in Canada, comparing 'white list' and 'black list' approaches and evaluating the effectiveness of mandatory bans over voluntary programs. It identifies key gaps in current legislation, such as exceptions for golf courses and lack of retail enforcement, while providing evidence of reduced pesticide concentrations in Ontario water bodies and decreased resident use in Toronto following the implementation of bans.

The report evaluates the first two phases of the EU ETS, finding that while it successfully capped emissions, its actual abatement impact was modest (40–80 MtCO2/yr) and heavily influenced by the 2008-2009 financial crisis. It notes that the system failed to drive large-scale long-term low-carbon investment due to price volatility and over-allocation. The analysis also highlights significant 'windfall profits' in the power and industrial sectors resulting from free allowance allocations and the pass-through of carbon costs to consumers. The document concludes by suggesting strengthening measures such as price floors and set-asides, and reviews similar emerging schemes in jurisdictions like Australia, China, and the USA.

The report concludes that the Montreal Protocol's integrated system of trade restrictions and positive incentives has been effective in achieving near-universal ratification and significantly reducing global emissions of ozone-depleting substances (ODS). Trade measures, such as bans on imports and exports of ODS and products containing them, created economic pressures that encouraged non-parties to join or comply to maintain market access. Simultaneously, positive measures—including a ten-year grace period for Article 5 parties, a financial mechanism (the Multilateral Fund), and technology transfer—lowered the economic and political barriers for developing countries. The report highlights a strong correlation between the implementation of these measures and spikes in ratification rates, particularly among export-dependent Asian economies and major ODS producers. While some Article 5 parties saw increased consumption during their grace periods, the overall global use of Annex A and B substances fell by 80% from baseline levels by 1995.

The report finds that over 60% of global coral reefs are threatened by local human activities, rising to 75% when heat stress is included. In the Coral Triangle, this figure exceeds 85%. The document highlights that while 28% of global reefs are in marine protected areas (MPAs), only 6% are effectively managed. It predicts that by 2050, nearly all reefs in the Coral Triangle will be threatened, with over 90% facing high to critical risks due to the combined effects of local pressures, ocean warming, and acidification.