Results-Based Financing and Its Potential Role in Advancing the Nexus Approach - Governing the Nexus: Water, Soil and Waste Resources Considering Global Change - page 84

Fig. 2 Results-based financing schema
3.2.1 Objective, Results and Indicators
RBF instruments focus on results and incentivize achieving the pursued objective.
Thus, analysing and understanding the relationship between objective, result and
indicator (how the results are measured) is extremely important. When the chain
between these three elements is robust (the indicator fairly represents the expected
results that are univocally linked to the objective of the intervention), the chances
for success are very high.
It is important to note that, if the results are not univocally related to the objective,
the intervention may incentivize a result that will not lead to achieving the objective
and, in certain cases, could produce unintended or opposite effects. This is particularly
relevant to the nexus approach as a thorough analysis of the intended and unintended
consequences (or positive and negative effects) of the intervention on the target sector
as well as on the other related sectors is critical to minimizing the negative effects.