The Adaptation Fund is a financial instrument under the UNFCCC and its Kyoto Protocol (KP) and has been established to finance concrete adaptation projects and programmes in developing country Parties to the KP, in an effort to reduce the adverse effects of climate change facing communities, countries and sectors. The Fund is financed with a share of proceeds from Clean Development Mechanism (CDM) project activities as well as through voluntary pledges of donor governments. The share of proceeds from the CDM amounts to 2% of Certified Emission Reductions (CERs) issued for a CDM project activity.
|Name of Fund||Adaptation Fund (AF)|
|Official Fund Website||www.adaptation-fund.org|
|Date Created||Date fund proposed: 2001
Date fund made operational: 2009
|Proposed Life of Fund||Indefinite. Presently a second commitment period between 2013 and 2020 of the Kyoto Protocol, under which the AF falls, has been agreed however the future of the fund is under review with a report expected in 2014.|
|Administrating Organisation||The World Bank is the Trustee of the Adaptation Fund on an interim basis.|
|Objectives||The AF aims to support concrete adaptation activities that reduce the adverse effects of climate change facing communities, countries, and sectors.|
|Activities Supported||Activities supported include:
|Conditions and Eligibility Requirements||In the first instance, developing countries must be Parties to the Kyoto Protocol and must be particularly vulnerable to the adverse effects of climate change. This includes: low-lying coastal and other small island countries, and countries with fragile mountainous ecosystems, arid and semi-arid areas, and areas susceptible to floods, drought and desertification.
Country allocation also takes into account the Strategic Priorities, Policies and Guidelines of the Adaptation Fund, specifically:
Those LDCs that are unable to access the Least Developed Countries Fund (LDCF) will also be given priority to AF funds.
|Accessing the Fund||Accreditation process:
The fund has a 50% funding cap for MIEs to encourage NIE applications. There is a US$10 million funding cap per country.
|Decision||The AF is governed by the:|
|Non-Government Stakeholder Participation||The level of consultation with civil society prior to the establishment of the fund is not known. In January 2011, the Adaptation Fund Board secretariat gave the opportunity to civil society representatives and other interested stakeholders to comment on five project proposals.
Since the 16th Adaptation Fund Board meeting in 2011, the fund has included civil society dialogue sessions at all Board meetings.
|Information Disclosure||Contributions are reported in the “Financial Status of the Adaptation Fund Trust Fund” or stated in meeting reports presented by the Adaptation Fund Board. A full list of projects is available on the Adaptation Fund website.|
|Issues Raised||As of March 2016, the following Implementing Entities are accredited to the fund:
Relationship with Official Development Assistance
|Inclusion as Official Development Assistance||The Fund is not wholly dependent on contributions of funding from developed countries, as it is primarily capitalised through a 2% levy on certified emission. Reductions from the Clean Development Mechanism (CDM).|
|Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan)||Grants|
|Nature of Recipient Country Involvement||At the 7th Adaptation Fund Board meeting in September 2009, the board operationalised the Direct Access Modality, which allows recipient countries to have direct access to its funds through National Implementing Entities (NIE). This approach should ensure that projects are driven by country needs and priorities. As of March 2016, 23 NIEs have been approved by the AF Board (see https://www.adaptation-fund.org/national-implementing-entities)Twelve Multilateral Implementing Entities (MIEs) have been approved: International Fund for Agricultural Development (IFAD), the Asian Development Bank (ADB), the United Nations Development Program (UNDP), the United Nations Environment Program (UNEP), the World Food Program (WFP), the World Meteorological Organisation (WMO), the United Nations Educational Scientific and Cultural Organisation (UNESCO), the World Bank (International Bank for Reconstruction and Development), the Inter-American Development Bank (IDB), the European Bank for Reconstruction and Development (EBRD), UN Habitat and the African Development Bank (AfDB) (See https://www.adaptation-fund.org/multilateral-implementing-entities).
The fund provides South-South Cooperation Grants to support experienced NIEs to assist other countries working to achieve accreditation.