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In recent years, sustainable community development has gained traction for addressing local environmental, social, and economic issues. Cities worldwide are committed to implementing sustainable community plans (SCPs) in their efforts to achieve sustainable development, and more recently, to localize the United Nations’ Sustainable Development Goals (SDGs). Although there are over 1000 plans in Canada, a gap exists between creating these plans and implementing them. Integrating market-based instruments (MBIs) with traditional policy tools would help to diversify revenue generation and thus mitigate these constraints. This paper presents a new and comprehensive categorization of MBIs that aligns the locally applicable ones with the environmental aims of both SCPs and SDGs. The categorization framework has been tested through focus groups with key municipal staff from two Canadian communities. The new categorization framework aligned over 50 locally applicable MBIs with 8 different environmental topics and 12 SDGs. The paper presents a useful tool for implementing SCPs and SDGs and contributes to the understanding of MBIs for enabling local progress in sustainable development.

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Note to Delegations:This document is also available on O.N.E under the reference code: DSTI/STP/NESTI(2019)1/FINAL This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.