This handbook has been developed toprovide instruction on the design and implementation ofincentives for resource-efficiency purposes. The targetaudience is World Bank staff and stakeholders who aresupporting the implementation of a resource-efficiencyprogram in a country on behalf of the government,development finance institution (DFI) or other institution.It is intended to be applicable to most, if not all,resource-efficiency issues and incentives. However, it has aparticular focus on energy-efficiency issues as this is theparticular focus of the World Bank’s Climate CompetitiveIndustries program, and is an area with a high level ofinterest from industry stakeholders. This handbook will helppractitioners to understand: (i) why incentives should beused; (ii) the kinds of incentives that are available; (iii)how incentives can be combined; (iv) how to diagnose theresource-efficiency issues and potential for action in thecountry; (v) what the key considerations are in theselection and design on an incentive; and (vi) whichinstitutional processes are required to supportimplementation of an incentive.It sets out the keyconsiderations in designing and implementing an incentivefor resource efficiency. Given the breadth of the potentialareas of application, the handbook provides an introductionto each incentive type and sets out the skeleton approach toimplementing an incentive. Further reading and support willbe required at key stages to enable readers to undertakesome of the technical aspects of implementation. For thisreason, the handbook should be considered the entry pointfor any party considering an incentive scheme for resourceefficiency. However, additional expertise may need to besought when it comes to the actual design of a specific incentive.
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