Climate Finance Tagging & Reporting Library

An organisation accredited by the GCF Board to access GCF resources and implement projects. AEs can be public or private sector entities, including national, regional, or international institutions. They must meet GCF fiduciary standards, environmental and social safeguards, and gender policies.

Adjustments in natural or human systems in response to actual or expected climatic stimuli or their effects, which moderates harm or exploits beneficial opportunities. Adaptation includes actions to reduce vulnerability and increase resilience to climate impacts such as sea-level rise, extreme weather, and changing precipitation patterns.

Financial flows directed at reducing vulnerability and increasing resilience to the impacts of climate change. Adaptation finance is often harder to track than mitigation finance because adaptation benefits are local and context-specific. The OECD DAC tracks adaptation finance using the climate change adaptation Rio marker.

The principle that a carbon credit represents emission reductions that would not have occurred without the project or intervention. Additionality is a core requirement for carbon credits under Article 6 of the Paris Agreement and voluntary carbon markets. A project is additional if it faces barriers (financial, technical, institutional) that the carbon revenue helps overcome.

A budget tagging methodology where climate expenditures are identified by anchoring them to a pre-defined list of climate-relevant budget lines, programmes, or activities. Used by several SIDS governments as a pragmatic alternative to activity-by-activity screening.

Article 6 of the Paris Agreement provides a framework for voluntary international cooperation on climate change mitigation. It includes: Art. 6.2 (bilateral cooperative approaches using Internationally Transferred Mitigation Outcomes/ITMOs), Art. 6.4 (the new Paris Agreement crediting mechanism replacing CDM), and Art. 6.8 (non-market approaches).

The reference scenario against which emission reductions or removals are measured. The baseline represents what GHG emissions would have been in the absence of the project or policy. Establishing a credible baseline is essential for calculating the emission reductions that can be credited.

Under the Paris Agreement's Enhanced Transparency Framework, all Parties must submit Biennial Transparency Reports covering GHG inventories, progress on NDCs, climate finance provided or received, and adaptation actions. BTRs replace the previous Biennial Reports and Biennial Update Reports.

Debt instruments issued to finance projects that protect and sustainably use ocean and marine resources. Particularly relevant for SIDS, blue bonds can fund coral reef protection, sustainable fisheries, coastal resilience, and marine protected areas. The Seychelles issued the world's first sovereign blue bond in 2018.

The systematic process of identifying, classifying, and tracking public expenditures that contribute to climate change mitigation, adaptation, or both within a national budget. Budget tagging enables governments to track climate-relevant spending, report to the GCF and UNFCCC, and align budgets with NDC targets.

The cumulative amount of CO₂ emissions permitted over a period of time to keep warming within a specified temperature limit. The IPCC AR6 estimated the remaining carbon budget for a 50% chance of limiting warming to 1.5°C at approximately 500 GtCO₂ from 2020 onwards.

Tradeable certificates representing one metric tonne of CO₂ equivalent (tCO₂e) of greenhouse gas emissions reduced, avoided, or removed. Carbon credits can be generated under compliance markets (e.g., EU ETS, Article 6.4) or voluntary markets (e.g., Verra VCS, Gold Standard).

A metric used to compare the warming impact of different greenhouse gases relative to carbon dioxide. Each gas is multiplied by its Global Warming Potential (GWP) over a specified time horizon (typically 100 years). For example, methane has a GWP100 of 27.9 (IPCC AR6), meaning 1 tonne of CH₄ = 27.9 tCO₂e.

A mechanism under the Kyoto Protocol (Article 12) that allowed developed countries to earn Certified Emission Reductions (CERs) by investing in emission-reduction projects in developing countries. The CDM is being transitioned to the Article 6.4 mechanism under the Paris Agreement.

A systematic analysis of public expenditures to identify and quantify climate-relevant spending across all government sectors and budget lines. CERs provide a baseline for climate budget tagging and help governments understand the current alignment of their budgets with climate objectives.

Local, national, or transnational financing drawn from public, private, and alternative sources that seeks to support mitigation and adaptation actions to address climate change. The UNFCCC Standing Committee on Finance defines climate finance based on the nature of activities financed (mitigation/adaptation) rather than the source.

The process of identifying, analysing, and evaluating the potential impacts of climate change on a project, programme, or system. Climate risk assessments consider both physical risks (extreme weather, sea-level rise) and transition risks (policy changes, technology shifts, market changes).

A brief document submitted to the GCF as the first step in the project approval process under the Simplified Approval Process (SAP) or the regular project cycle. The concept note describes the project's objectives, activities, expected results, and alignment with the country's NDC and GCF investment criteria.

Loans or other financial instruments provided on terms more favourable than market conditions, typically with lower interest rates, longer repayment periods, or grace periods. Concessional finance is a key instrument for climate finance in developing countries, often provided by multilateral development banks and bilateral donors.

An arrangement where a portion of a country's external debt is cancelled or restructured in exchange for the debtor country committing to invest in climate or nature projects. Debt-for-climate swaps are particularly relevant for highly indebted SIDS seeking to free up fiscal space for climate action.

An Accredited Entity that is a national or sub-national institution in a developing country, enabling direct access to GCF resources without going through an international intermediary. DAEs are central to the GCF's direct access modality and help build national ownership of climate finance.

A coefficient that quantifies the emissions or removals of a gas per unit of activity. Emission factors are used in GHG inventories and project-level calculations. The IPCC provides default emission factors in its Guidelines for National Greenhouse Gas Inventories, which can be refined with country-specific data.

The transparency framework established under Article 13 of the Paris Agreement, requiring all Parties to report on GHG inventories, NDC progress, climate finance, and adaptation actions through Biennial Transparency Reports. The ETF replaced the previous dual-track system (developed vs. developing countries) with a single, flexible framework.

The room in a government's budget that allows it to provide resources for a desired purpose without jeopardising the sustainability of its financial position. For SIDS, climate-related fiscal space is often constrained by high debt levels, small economies, and frequent climate disasters.

A government official designated to liaise with the GCF on behalf of a country. The NDA/focal point is responsible for providing no-objection letters for GCF projects, coordinating country programming, and ensuring alignment with national priorities.

A document required by the GCF for all funded projects, outlining how gender equality and women's empowerment will be integrated into project design, implementation, and monitoring. GAPs must include gender-disaggregated targets, indicators, and a budget for gender-responsive activities.

A scoring system used to classify the extent to which a project or programme addresses gender equality. The OECD DAC gender marker uses three values: 0 (not targeted), 1 (significant objective), 2 (principal objective). The GCF uses a similar system to track gender-responsive climate finance.

A systematic compilation of greenhouse gas emissions and removals for a defined geographic area (typically a country) over a specified period. National GHG inventories are required under the UNFCCC and follow the IPCC Guidelines for National Greenhouse Gas Inventories. They cover six sectors: Energy, IPPU, Agriculture, LULUCF, Waste, and Other.

A measure of how much energy the emissions of 1 tonne of a gas will absorb over a given period of time, relative to the emissions of 1 tonne of CO₂. GWP100 (100-year time horizon) values from IPCC AR6: CO₂ = 1, CH₄ = 27.9, N₂O = 273, HFC-134a = 1,526, SF₆ = 25,200.

Fixed-income financial instruments where the proceeds are exclusively applied to finance or refinance green projects. Green bonds must meet the ICMA Green Bond Principles or the Climate Bonds Standard. They are increasingly used by SIDS governments to finance climate adaptation and mitigation.

The world's largest dedicated climate fund, established under the UNFCCC to support developing countries in limiting or reducing their greenhouse gas emissions and adapting to climate change. The GCF aims to achieve a 50:50 balance between mitigation and adaptation funding, and to direct at least 50% of adaptation finance to particularly vulnerable countries including SIDS and LDCs.

A comprehensive assessment of public expenditures that contribute to environmental sustainability, including climate change mitigation and adaptation. GERs are broader than Climate Expenditure Reviews and may include biodiversity, water, and pollution-related spending.

The IFRS Sustainability Disclosure Standard on Climate-related Disclosures, issued by the ISSB in June 2023. IFRS S2 requires entities to disclose climate-related risks and opportunities, governance, strategy, risk management, and metrics/targets. It is built on the TCFD framework and includes Scope 1, 2, and 3 emissions disclosures.

A unit of emission reductions or removals transferred between countries under Article 6.2 of the Paris Agreement. ITMOs must be authorised by the host country and are subject to corresponding adjustments to avoid double counting. Each ITMO represents 1 tonne of CO₂e.

Countries classified by the UN as having low income, weak human assets, and high economic vulnerability. LDCs are eligible for enhanced support under the UNFCCC, including access to the LDC Fund and priority access to GCF resources. Many SIDS are also LDCs.

The negative impacts of climate change that cannot be adapted to, including both economic losses (damage to infrastructure, crops) and non-economic losses (loss of culture, biodiversity, territory). The Warsaw International Mechanism (WIM) and the Santiago Network provide institutional support for L&D. COP27 established a dedicated Loss and Damage Fund.

A system for measuring GHG emissions and emission reductions, reporting them to relevant authorities, and having them independently verified. MRV is essential for ensuring the environmental integrity of climate actions and carbon markets. Under the Paris Agreement, MRV is implemented through the Enhanced Transparency Framework.

Human interventions to reduce greenhouse gas emissions or enhance carbon sinks. Mitigation actions include transitioning to renewable energy, improving energy efficiency, switching to sustainable transport, protecting forests (REDD+), and changing agricultural practices. Mitigation is tracked using the OECD DAC climate change mitigation Rio marker.

A UN index measuring structural vulnerability and lack of resilience in developing countries, particularly SIDS. The MVI was adopted by the UN General Assembly in 2024 and covers three dimensions: exposure to shocks, structural vulnerability, and lack of resilience. It is intended to inform access to concessional finance.

International financial institutions owned by member governments that provide loans, grants, and technical assistance to developing countries. Key MDBs in climate finance include the World Bank Group, Asian Development Bank (ADB), Inter-American Development Bank (IDB), African Development Bank (AfDB), and Caribbean Development Bank (CDB).

A process established under the Cancún Adaptation Framework to enable LDCs and other developing countries to identify medium- and long-term adaptation needs and develop strategies and programmes to address those needs. NAPs are submitted to the UNFCCC and inform GCF adaptation project pipelines.

The government body or official designated by a country to serve as the interface between the country and the GCF. The NDA provides no-objection letters for GCF projects, coordinates country programming, and ensures projects align with national priorities and the country's NDC.

A country's climate action plan submitted to the UNFCCC under the Paris Agreement, outlining its mitigation targets (emission reductions) and adaptation actions. NDCs are updated every five years with progressively higher ambition. They serve as the primary reference for climate budget tagging and GCF project alignment.

A state in which the greenhouse gases going into the atmosphere are balanced by removal out of the atmosphere. Net zero emissions are achieved when anthropogenic emissions of GHGs to the atmosphere are balanced by anthropogenic removals over a specified period. The Paris Agreement's 1.5°C pathway requires global net zero CO₂ by around 2050.

A letter issued by a country's NDA or focal point confirming that a proposed GCF project is consistent with national priorities and the country's climate strategy. The NOL is a mandatory requirement for all GCF project submissions and must be obtained before a concept note or full proposal is submitted.

The Development Assistance Committee of the OECD, which sets standards for measuring and reporting official development assistance (ODA). The DAC's Creditor Reporting System (CRS) uses Rio markers to track climate-related ODA flows, providing the most comprehensive global dataset on bilateral climate finance.

Government aid designed to promote the economic development and welfare of developing countries. ODA flows are reported to the OECD DAC and tracked using Rio markers for climate relevance. Climate-related ODA has grown significantly, reaching USD 68.3 billion in 2021.

A legally binding international treaty on climate change adopted at COP21 in Paris in December 2015. The Paris Agreement aims to limit global warming to well below 2°C, preferably to 1.5°C, compared to pre-industrial levels. It requires all countries to submit NDCs and report progress through the Enhanced Transparency Framework.

Climate-related risks arising from physical changes in the climate system, including acute risks (extreme weather events) and chronic risks (long-term shifts in climate patterns). Physical risks are a key consideration in TCFD disclosures and climate risk assessments for infrastructure and financial assets.

Reducing Emissions from Deforestation and Forest Degradation in developing countries, plus the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks. REDD+ is a key mitigation mechanism under the UNFCCC and can generate carbon credits under Article 6.

The capacity of social, economic, and environmental systems to cope with a hazardous event, trend, or disturbance, responding or reorganising in ways that maintain their essential function, identity, and structure. Building resilience is a key objective of adaptation finance and GCF-funded projects.

Bonds designed to finance projects that build resilience to climate and disaster risks. Unlike traditional catastrophe bonds (cat bonds), resilience bonds provide upfront financing for risk-reduction projects, with the premium reduction used to repay the bond. Particularly relevant for SIDS facing high disaster risk.

A set of policy markers used by OECD DAC members to track aid flows targeting the objectives of the Rio Conventions (climate change mitigation, climate change adaptation, biodiversity, desertification). Each marker has three values: 0 (not targeted), 1 (significant objective), 2 (principal objective). The GCFT platform uses Rio markers as the primary scoring system for budget tagging.

A network established at COP25 to catalyse technical assistance for loss and damage in developing countries. The Santiago Network connects developing countries with providers of technical assistance, knowledge, and resources to address loss and damage associated with climate change impacts.

Direct greenhouse gas emissions from sources owned or controlled by an organisation, including combustion of fossil fuels in owned vehicles and facilities, and industrial processes. Scope 1 emissions are the most directly controllable and are always included in corporate GHG inventories.

Indirect greenhouse gas emissions from the generation of purchased electricity, steam, heat, or cooling consumed by an organisation. Scope 2 emissions can be calculated using location-based (average grid emission factor) or market-based (contractual instruments) methods.

All indirect greenhouse gas emissions (not included in Scope 2) that occur in the value chain of an organisation, including both upstream and downstream emissions. Scope 3 typically represents the largest portion of an organisation's carbon footprint and includes 15 categories such as purchased goods, business travel, and use of sold products.

A streamlined project approval process for smaller GCF projects (up to USD 10 million for grants, up to USD 50 million total). The SAP has fewer documentation requirements and a faster review timeline than the regular project cycle, making it more accessible for SIDS and LDCs with limited institutional capacity.

A group of 39 UN member states and 18 associate members that share similar sustainable development challenges, including small size, remoteness, narrow resource and export base, and vulnerability to climate change. SIDS are responsible for less than 1% of global GHG emissions but face disproportionate climate impacts including sea-level rise, intensifying hurricanes, and coral bleaching.

The Task Force on Climate-related Financial Disclosures, established by the Financial Stability Board in 2015. TCFD developed a framework for voluntary climate-related financial disclosures covering four areas: Governance, Strategy, Risk Management, and Metrics & Targets. The TCFD framework has been incorporated into IFRS S2 and mandatory disclosure regimes in many jurisdictions.

Climate-related risks arising from the transition to a lower-carbon economy, including policy and legal risks (carbon pricing, regulations), technology risks (disruption from clean energy), market risks (changing supply and demand), and reputational risks. Transition risks are a key component of TCFD disclosures.

The United Nations Framework Convention on Climate Change, an international treaty adopted in 1992 that established the framework for international climate negotiations. The UNFCCC has 198 Parties and serves as the parent treaty for the Kyoto Protocol and the Paris Agreement.

The propensity or predisposition to be adversely affected by climate change. Vulnerability encompasses exposure (the presence of people, livelihoods, species, ecosystems, resources, infrastructure, or economic, social, or cultural assets in places that could be adversely affected), sensitivity, and adaptive capacity.

The Warsaw International Mechanism for Loss and Damage associated with Climate Change Impacts, established at COP19 in 2013. The WIM aims to address loss and damage in developing countries that are particularly vulnerable to the adverse effects of climate change, including extreme events and slow onset events.

eXtensible Business Reporting Language, a global standard for exchanging business and financial information. XBRL is increasingly used for climate and sustainability reporting, enabling machine-readable disclosure of GHG emissions, climate risks, and financial impacts. The IFRS Foundation has developed an XBRL taxonomy for IFRS S1 and S2 disclosures.