Participant costs and benefits
Market-based sustainability tools incentivise producers and consumers to reduce environmental impacts. While the focus is often on environmental benefits, social and economic impacts are equally important. These tools can offer benefits like better market access and higher prices, but the costs of compliance, certification, and training can be burdensome, especially for smaller producers.
To address these challenges, market-based initiatives adopt strategies that balance economic and social benefits, including:
Market access and price premiums:
Increasing income through access to high-value markets and price premiums.
Training and efficiency gains:
Providing training to improve productivity, reduce waste, and enhance profitability.
Access to ecosystem services:
Encouraging participation in payment schemes for conservation efforts.
Increased product quality:
Improving management to boost product quality and demand.
Improved land tenure and governance:
Strengthening land rights and governance for long-term security and investment.
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