Unravelling the Role of Institutions in Market-Based Instruments: A Systematic Review on Forest Carbon Mechanisms

Forest ecosystems provide various services that are crucial to human beings, in which carbon sequestration and storage is one of them with the most market potential usually governed by market-based instruments (MBIs). MBIs do not operate alone but hybrid governance arrangements. While importance public institutions has been identified, there still a need examine specific role market-oriented mechanism. Our work seeks answers this question. This meta-study presents an up-to-date picture targeted at forest carbon, 88 mechanisms synthesized quantitative database. We analyze discuss policy design features these group into nine types MBIs. find many coexist and/or interact other instruments. In light results, we introduce concept mix argue interplay among can be complementary or interdependent. Using cluster analysis identify underlying patterns, reconfirm previous findings distinct differences between private PES schemes, also recognize new label it as ‘legally binding mechanism’. discover pronounced mechanisms, they buyer, seller, regulator, coordinator, intermediary, facilitator. Besides, tend play increasing future climate arena. believe should stand out create enabling conditions for finance.