Cost allocation and incentive mechanisms for the environment, climate protection and resource conservation along global supply chains

Summary

The German Environment Agency's research project addresses the challenge of misaligned incentives and barriers to implementing environmental protection measures and equitable cost-benefit sharing across global supply chains. It analyzes five key supply chains to German industry and proposes four promising incentive mechanisms: price premiums, pay-per-performance contracts, collaborative financing of supplier investments, and offtake agreements. This final report, completed in November 2024 and published in May 2025, provides guidance to businesses and policymakers to foster more sustainable and equitable supply chain management.

Key Facts

Source Document

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