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A term sheet is a non-binding financial agreement
that describes each of the elements of an NCF. It provides a concise framework for the objectives, capitalization, governance, fiduciary management, implementation arrangements and MRV of an NCF so that the basic conditions under which the NCF will operate are clearly defined. While many NCF term sheets follow a similar structure, they can be tailored to accommodate NCF design elements that support national needs and priorities.
SOURCE: A Guidebook for the Design and Establishment of National Funds to Achieve Climate Change Priorities – UNDP
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