Redefining Value From Outcome Based Funding to Tradeable Impact 2025

From vision to action: a pathway for scaling tradeable impact5 Varied pathways with distinct roles and trajectories lead to the adoption of tradeable impact. The implementation of tradeable impact might be closer than expected. Building on existing building blocks for tradeable impact, several potential pathways for developing social impact markets exist. 5.1 Overall approaches to scaling tradeable impact Regional or thematic credits Regional or thematic credits target specific geographies or sectors, building on existing outcome measurement systems, harnessing existing stakeholder relationships and demonstrating proof of concept to establish market viability. For example, Collective X is a digital skills marketplace linking corporate demand with a coordinated supply in South Africa. Local governments, NGOs and community organizations are key stakeholders. The Giga Initiative, a partnership between UNICEF and ITU, issues connectivity credits to almost 100,000 schools.26 ISPs then claim these credits in return for the high-quality internet access they provide to these schools. Social impact as co-benefit Social co-benefits can be integrated within existing carbon markets. Novel policy initiatives such as Global Carbon Rewards already use co-benefits for climate action to ensure the social feasibility of climate projects. In this process, existing carbon markets can add social impact (creating premium pricing mechanisms for “higher-quality” credits) while using established verification systems. For example, Global Surgical Initiatives and Powertrust have developed Empowered Social Impact, linking surgical health outcomes in Uganda to renewable energy certificates. Investors, corporations and policy-makers are crucial, as they facilitate the integration of social impact measures and help create the necessary demand for premium pricing mechanisms. Standalone social impact credits Standalone social impact credits require the creation of independent frameworks and new market infrastructure. This pathway focuses on enabling the pure trading of social impacts, and aims to scale across regions and sectors, allowing for a broader, more flexible market for social outcomes based on impact marketplace such as OutcomesX or CGM. Collaboration between a broad coalition of multilateral organizations, standard setters, technology providers and financial institutions is required to create a robust market. Regulatory action and fiscal spending may support demand creation, while monetary policy can enable the long-term viability of impact assets. Building on existing building blocks for tradeable impact, several potential pathways for developing social impact markets exist. Image credit: doctHERs 25 Redefining Value: From Outcome-Based Funding to Tradeable Impact