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Early childhood care and education (ECCE) is increasingly recognised as a foundation for lifelong learning and social wellbeing. Yet governments continue to face the challenge of improving quality and equity while expanding access to quality ECCE services.

This policy note synthesises emerging lessons from outcomes-based financing (OBF) initiatives in ECCE and explores where, when, and under what conditions outcomes-based approaches may be useful. It includes a practical decision checklist, key insights, international case studies, and recommendations for policymakers, funders, and practitioners considering the use of OBF within ECCE systems.