Fairtrade certification
In transitioning to sustainable markets, formal rules sometimes called market governance mechanisms (MGMS)are key potential tools to shape and govern markets. Examples could include Fairtrade certification, sustainable reporting and metrics, payments for ecosystem services or other market-based instruments. MGMs change the behaviour of consumers, investors or producers so that their decisions result in more sustainable outcomes. MGMs could provide economic signals or incentives, for example in pricing externalities. Regulatory mechanisms could prohibit or require certain practices by consumers or producers. Or cooperative mechanisms could create voluntary or more formal partnerships around environmental norms or standards.