Quantity Performance Payment by Results – Operationalizing enhanced direct access for mitigation at the Green Climate Fund
This OIES Research Paper by Benito Müller, Samuel Fankhauser, and Maya Forstater looks at the possibility of using Quantity Performance (QP) instruments for ‘wholesale’ mitigation funding through enhanced direct access to the Green Climate Fund (GCF)
The Paper carries out an evaluation of such instruments in this context with respect to three key objectives of the GCF, namely, to promote a paradigm shift towards low-emission and climate-resilient development pathways, to achieve economic efficiency in directly securing emission reductions at cost, and to support equity in the distribution of resources. Based on this evaluation, the paper concludes that QP instruments can be used in conformity with these objectives, provided they are used as a complement to other funding instruments.
It ends by putting forward two examples of how QP instruments could be used in such a ‘wholesale’ fashion.