CLIMATE FINANCE GLOSSARY

I. INTERNATIONAL CLIMATE FINANCE

• Accredited Entity : A national, regional, or multilateral institution that meets a fund’s standards and achieves a specific accreditation status. It can be private, public, or non-governmental. Entities may be accredited as implementing, delivery, or executing entities depending on the fund’s requirements (see “Implementing Entity”).
• Additionality : Refers to the use of development funding specifically for climate-related objectives beyond regular development efforts. Some funds, such as the Green Climate Fund or the GEF Special Climate Change Fund, require that projects have a primary focus on climate change rather than being development projects with climate co-benefits. The concept is politically sensitive and continues to be debated internationally. Additionality is a key principle in EU project financing. More information: https://ec.europa.eu/
  Regional Policy – Principles
• Annex I Parties : Industrialized countries listed in Annex I of the UNFCCC, committed to reducing greenhouse gas emissions. Most are signatories to the Kyoto Protocol and the Paris Agreement. List of Annex I Parties: UNFCCC Parties and Observer States
• Annex II Parties : Composed of OECD members from Annex I, excluding EIT Parties. These countries are obligated to provide financial resources to help developing nations reduce emissions and adapt to climate change. They must also promote the transfer of environmentally sound technologies to EIT Parties and developing countries. Funding is typically channeled through the Convention’s financial mechanism. For more details, see the link under Annex I Parties.
• Clean Development Mechanism (CDM) : A mechanism under the Kyoto Protocol allowing developed countries to finance greenhouse gas emission reduction or removal projects in developing countries and receive carbon credits in return, which can be used toward meeting their own emission limits.
  Definition from Government of Nepal, 2014. Climate Finance Glossary.

Source:

https://e-library.iclei.org/uploads/Climate-finance-glossary-TAP.pdf