Incremental Costs


Date:
May 14, 2007

GEF funds the "incremental" or additional costs associated with transforming a project with national benefits into one with global environmental benefits; for example, choosing solar energy technology over coal or diesel fuel meets the same national development goal (power generation), but is more costly. GEF grants cover the difference or "increment" between a less costly, more polluting option and a costlier, more environmentally friendly option.