The process of adjustment to actual or expected climate and its effects. In human systems, adaptation seeks to moderate or avoid harm or exploit beneficial opportunities. In some natural systems, human intervention may facilitate adjustment to expected climate and its effects.

Local, national, or transnational financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change.

An investment strategy that seeks to intentionally and measurably use capital to address gender disparities and better inform investment decisions. Gender as a factor of analysis can highlight opportunities and reveal risks that can strengthen investment decision-making to achieve greater financial and social outcomes.

A portfolio of investments made using public finance from the United Kingdom. These investments have the goal of supporting international poverty eradication now and in the future by helping developing countries manage risk and build resilience to the impacts of climate change, take up low-carbon development at scale, and manage natural resources sustainably. Investment results are measured annually against Key Performance Indicators (KPIs). See more on ICF KPIs in the impact measurement section.

A human intervention to reduce the sources or enhance the sinks of greenhouse gases.

A landmark 2015 treaty between 196 countries to limit global warming to below 2°C (compared to pre-industrial levels) and to pursue efforts to restrict the average global temperature rise to 1.5°C. The Agreement aims to increase the ability of countries to deal with the impacts of climate change, and make finance flows consistent with a low greenhouse gas emissions and climate-resilient pathway. The Agreement also emphasises that climate action needs to respect, promote and consider a range of human rights, including gender equality.

Paris-aligned projects are those that are aligned with the goals of the Paris Agreement. They are characterised by:

• A carbon footprint or carbon intensity that is limited or declining in line with a Paris-aligned trajectory

• Limited vulnerability to physical climate hazards

• Low transition risk and carbon lock-in risk

• Not indirectly supporting non-aligned activities

Methodologies to assess and achieve Paris alignment at the transaction and institution level are emerging. Examples include the Multilateral Development Banks’ (MDBs’) joint Paris Alignment approach, CDC’s Paris alignment approach and EBRD’s Paris Agreement Alignment Methodology.

The UN Race to Zero Campaign considers an individual actor to have reached a state of net zero when it has reduced its emissions following science-based pathways, with any remaining greenhouse gas emissions attributable to that actor being fully neutralized by like-for-like removals (e.g. permanent removals for fossil carbon emissions) exclusively claimed by that actor, either within its value chain or through the purchase of valid offset credits.