Glossary
Impact Financing / Sustainable Finance
1. Impact Investing: Investing with the intention of generating positive, measurable social and environmental impact alongside a financial return.
2. Sustainable Finance: Financial services integrating environmental, social, and governance (ESG) criteria into business or investment decisions.
3. Green Bonds: Fixed-income instruments designed specifically to support climate-related or environmental projects.
4. Social Bonds: Bonds issued to raise funds for new and existing projects with positive social outcomes.
5. Environmental, Social, and Governance (ESG): Criteria used to evaluate a company’s operations and future financial performance in terms of sustainability and ethical impact.
6. Triple Bottom Line: A business framework that includes social, environmental, and financial performance measures.
7. Blended Finance: The strategic use of development finance and philanthropic funds to mobilize private capital flows to emerging and frontier markets.
8. Carbon Credits: Certificates representing the right to emit one ton of carbon dioxide or the equivalent amount of another greenhouse gas.
9. Greenwashing: The practice of making misleading claims about the environmental benefits of a product, service, or company’s practices.
10. Socially Responsible Investing (SRI): An investment strategy that considers both financial return and social/environmental good to bring about social change.
Climate Mitigation
11. Climate Mitigation: Actions to limit the magnitude or rate of long-term climate change, typically by reducing greenhouse gas emissions or enhancing carbon sinks.
12. Carbon Sequestration: The process of capturing and storing atmospheric carbon dioxide.
13. Renewable Energy: Energy from sources that are naturally replenishing, such as solar, wind, and hydropower.
14. Energy Efficiency: Using less energy to provide the same service or achieve the same result.
Impact Financing/Sustainable Finance
15. Impact Investment: Investments made with the intention of generating positive, measurable social and environmental impact alongside a financial return.
16. Sustainable Finance: Financing that considers environmental, social, and governance (ESG) considerations to promote sustainable economic growth.
17. Green Bonds: Bonds specifically earmarked to be used for climate and environmental projects.
18. Social Bonds: Bonds that raise funds for new and existing projects with positive social outcomes.
19. ESG Criteria: Environmental, Social, and Governance criteria used by investors to screen potential investments.
20. Triple Bottom Line: An accounting framework that incorporates three dimensions of performance: social, environmental, and financial.
21. Blended Finance: The use of public funds to mobilize private sector investment for sustainable development.
22. Microfinance: Financial services provided to low-income individuals or those without access to typical banking services.
23. Community Development Financial Institutions (CDFIs): Institutions providing credit and financial services to underserved markets and populations.
24. Social Impact Bonds (SIBs): A type of bond where repayment and return are contingent upon achieving specified social outcomes.
Climate Mitigation Finance
25. Climate Finance: Financing directed towards activities that mitigate or adapt to the impacts of climate change.
26. Carbon Credits: Permits that allow a country or organization to emit a certain amount of carbon dioxide, which can be traded if the full allowance is not used.
27. Carbon Offsets: Reductions in greenhouse gas emissions used to compensate for emissions produced elsewhere.
28. Renewable Energy Certificates (RECs): Certificates representing the environmental benefits of generating one megawatt-hour (MWh) of electricity from renewable sources.
29. Green Climate Fund (GCF): A fund established within the framework of the UNFCCC to assist developing countries in adaptation and mitigation practices to counter climate change.
30. Nationally Determined Contributions (NDCs): Climate action plans developed by countries to reduce national emissions and adapt to the impacts of climate change.
31. Adaptation Finance: Funding provided to projects aimed at adapting to the impacts of climate change.
32. Mitigation Finance: Funding directed towards projects that reduce or prevent greenhouse gas emissions.
Regenerative Farming Finance
33. Regenerative Agriculture: A system of farming principles and grazing practices that improve biodiversity, enriches and restores degraded soils, improves watersheds, increases carbon capture and enhances ecosystem services.
34. AgriTech: The use of technology in agriculture, horticulture, and aquaculture to improve yield, efficiency, and profitability.
35. Carbon Farming: Agricultural practices aimed at reducing greenhouse gas emissions and sequestering carbon in soil and vegetation.
36. Sustainable Agriculture Loans: Loans provided to farmers to implement sustainable and regenerative farming practices.
37. Ecosystem Services Payments: Financial incentives provided to farmers and landowners for managing their land to provide ecological benefits.
38. Farm Cooperative Financing: Financial support mechanisms for groups of farmers who work together to achieve common economic goals.
39. Organic Certification Financing: Loans or grants provided to farmers to cover the costs associated with transitioning to organic farming.
40. Agroforestry Finance: Financial support for integrating trees and shrubs into agricultural landscapes to enhance productivity, profitability, and environmental benefits.
41. Soil Health Financing: Investments aimed at improving soil health through practices such as cover cropping, reduced tillage, and crop rotation.
42. Biodynamic Farming Loans: Financial products designed to support biodynamic farming, which emphasizes holistic and ecological approaches to agriculture.
43. Carbon Footprint: The total amount of greenhouse gases emitted directly or indirectly by an individual, organization, event, or product.
44. Net Zero: Achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere.
45. Adaptation: Adjusting practices, processes, and capital in response to the impacts of climate change.
46. Decarbonization: The reduction or elimination of carbon dioxide emissions from energy sources.
47. Climate Resilience: The capacity of a system to absorb stress and maintain function in the face of external stresses imposed by climate change.
48. Sustainable Development Goals (SDGs): A collection of 17 global goals set by the United Nations to address global challenges, including those related to poverty, inequality, climate, environmental degradation, peace, and justice.
