Ecological Impact Fund: Greening the Global South

Abstract The Ecological Impact Fund (EIF) is a proposed new international financing facility that would enable originators of green innovations to exchange—in the lower-income countries—their monopoly markups for impact rewards. Each year, the EIF would split a preannounced disbursement among participating innovations according to the ecological impact achieved with them in the EIF-Zone. Replacing the headwind of monopoly markups with a tailwind of performance payments, the EIF would give originators a financial interest in the wide and effective use of their registered innovations and stimulate development of additional greenovations that—tailored to needs, cultures, circumstances, and preferences in the EIF-Zone—would be especially impactful there. These two effects would produce a third: the EIF would help build capacities to develop, manufacture, distribute, install, operate, and maintain green technologies in the EIF-Zone.