Market-based instruments for biodiversity and ecosystem services: A lexicon

► Market-based instruments (MBIs) are prominent in discourses and practice for biodiversity conservation and ecosystem services' provision. ► MBIs are a heterogeneous group of policy instruments with very few shared characteristics and questionable links to markets. ► For the sake of clarification and better use as policy instruments, a lexicon is proposed that includes six categories. ► The term “Payments for Ecosystem Services” faces various interpretations that fit in all but one categories of the lexicon.