Climate Finance
Results-based finance
Payment released only after independently verified results are delivered, rather than against planned activity.
Results-based finance ties disbursement to verified outcomes. It shifts performance risk to the implementer and gives the payer assurance that money bought a measured result.
The drawback is working capital. Implementers must fund operations for years before any payment arrives, which excludes smaller actors unless bridge finance is available.
Frequently asked questions
What counts as a result?
Defined in the agreement, usually verified emission reductions or removals for a stated period.
How does it differ from an offtake?
Offtakes buy output; results-based finance pays for verified performance, often with public funds.