First, each jurisdiction developed sustainable finance plans, including financing targets, strategies, and the creation of Protected Area Network (PAN) Funds. For example, Palau created a Green Fee, and FSM and RMI are working on Tuna Licensing Fee legislation and a tourism fee to support sustainable financing of the Micronesia Challenge. Pohnpei and Kosrae State are creating PAN funds and are evaluating an amendment to the airport tax law to allow some of the departure fees to go into the FSM's Micronesia Challenge Endowment Fund. Additionally, several other sustainable financing schemes have been and/or are being set up (i.e. the Yela Conservation Easement Endowment, the Awak Sustainable Community Development Revolving Fund, the Nett Water Fund). An endowment for the MC is another important component to sustainable financing. Interest income from an endowment of approximately $56 million ($17 million as of 2015) will be needed to supplement local sources for the long-term sustainability of the MC in all five jurisdictions. Although the endowment funds are invested together, each jurisdiction has their own sub-account and will develop their own dissemination mechanisms for their interest income.
- The Micronesia Conservation Trust (founded 2002) had structure and relationships in place prior to receiving funds, which was a key component to project success. Past success with pass-through grants helped build credibility.
- The Endowment was seeded with over $11 million from the Global Environment Facility, The Nature Conservancy (TNC), and Conservation International, and leveraged additional resources from the countries.
- Innovative financing ideas are being developed in each of the five jurisdictions and at the community level
- Regional conservation trusts can be a powerful mechanism for building capacity and creating a hub for regional networks and partnerships, and MCT has served as a model for other regional funds, such as the Caribbean Biodiversity Fund (CBF) established in 2012.
- The Micronesia Challenge incentivizes longer-term planning, because criteria such as establishing management plans are required before tapping into the endowment funds.
- Innovative financing mechanisms developed in one jurisdiction or by one community can be replicated and scaled in other places, because the Micronesia Challenge encourages sharing of information to achieve a regional goal.