Incremental cost principle
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Since 1991, the Global Environment Facility (GEF) a multilateral organization has pioneered the application of the incremental cost principle. The GEF provides non-repayable grants to finance the agreed incremental cost of activities that benefit the global environment. The IC is the difference in differences between benefits and costs between the current scenario and another one that results in global environmental benefits. The objective was to give less industrialized countries the financial incentives to undertake domestic policy measures that would benefit the global commons.
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| Data last updated | November 9, 2022 |
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