PAY FOR PERFORMANCE TOOLKIT

Full Delivery

Full delivery strategies introduce the opportunity for private capital to cover project implementation costs. In this strategy, a purchase contract assures the producer that they will receive payment if environmental outcomes are achieved. This contract helps producers secure private capital, if necessary.

Full delivery works best in regions with clearly defined metrics and demonstrated demand for environmental outcomes, especially in a regulatory or mitigation context.

Distinguishing Characteristics

  • Producers or investors finance all project implementation costs
  • Conservation or mitigation buyers repay financers upon verification of environmental outcomes
full delivery diagram

Refer to the Actors page for descriptions of each component.

Payment Structure

The diagram below illustrates an example payment structure for a full delivery contract. The buyer pays the producer upon initial verification of environmental outcomes, and periodically throughout the stewardship term as outcomes are verified. The initial verification payment is typically a single, larger payment, while ongoing verification payments are typically made in multiple, smaller payments.

phase 2 implementation and payment