Glossary

In 1997, representatives from over 170 nations met in Kyoto, Japan to put together a new global treaty - the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC) - laying down legally binding reductions in greenhouse gas emissions throughout developed countries emissions by an average of…

An investment strategy in which one invests in line with ethical principles and excludes companies deemed to be unethical.

Assessment of the potential impact of the proposed development on the physical, biological and human environment during construction, operation and decommissioning.

One of the Flexible Mechanisms defined in the Kyoto Protocol (IPCC, 2007) that provides for emissions reduction projects which generate Certified Emission Reduction units (CERs) which may be traded in emissions trading schemes.

A  Bond issued to an SPV at the instruction of a construction contractor (usually by a banker to that contractor) which guarantees the obligations of the contractor up to the amount of the bond during the warranty period.

A variation (sometimes referred to as a variation instruction, variation order (VO) or change order), is an alteration to the scope of works in a construction contract in the form of an addition, substitution or omission from the original scope of works. Lenders (and sponsors) are acutely aware that any…

A form of Reserve Based Lending which is used in North America. US Borrowing Base structures typically require 100% approval by all lenders for any increases in debt capacity (as opposed to 2/3 in European Borrowing Base Structures). US-style facilities generally also give only very limited debt value to probable…

In syndicated loan transactions the Mandated Lead Arrangers may agree, for an underwriting fee, to provide the full amount of the loan facility if it proves impossible for them to syndicate the transaction to other lenders. The name derives from the Lloyd's of London insurance market. Financial bankers, who would…

A collection of 17 goals reflecting the biggest challenges facing global societies, environments and economies today. Many investment decisions are now driven by the willingness to meet those SDGs.The 17 SDGs are: no poverty, zero hunger, good health and wellbeing, quality education, gender equality, clean water and sanitation, affordable and…

The international framework established in 1992 to tackle the issue of climate change and greenhouse gas emissions. The UNFCCC aims to prevent dangerous man-made climate change and commits developed countries to take the lead in tackling climate change.