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 contributing governments as well as non-governmental or individual contributors. The share of proceeds from the CDM amounts to 2% of Certified Emission Reductions (CERs) issued for a CDM project activity.
|Name of the Fund||Adaptation Fund (AF)|
|Official Fund Website||www.adaptation-fund.org|
|Proposed Life of Fund||Indefinite.|
|Objectives||The AF aims to increase resilience through concrete adaptation projects and programmes that reduce the adverse effects of climate change facing communities, countries, and sectors.|
|Financial inputs and fund size||As of November 2020, the Fund’s total financial contributions received over time amount to approximately USD 1.05 billion.
The contributors are: Austria, Belgium, Canada, the European Commission, Finland, France, Germany, Ireland, Italy, Japan, Luxembourg, Monaco, New Zealand, Norway, Poland, Spain, Sweden, Switzerland, United Kingdom, United Nations Foundation.
Further details on the financial contributions to the Adaptation Fund are available at: https://fiftrustee.worldbank.org/en/about/unit/dfi/fiftrustee/fund-detail/adapt.
The financial inputs are not fully ODA. In fact, the Fund is not wholly dependent on contributions of funding from developed countries, as it is also capitalised through a 2% levy on certified emission reductions from the Clean Development Mechanism (CDM); this finance can be considered new and additional to ODA.
|Activities Supported||The Adaptation Fund programmes primarily cover food security, agriculture, water management, and disaster risk reduction.
Activities supported by the Fund include:
|Secretariat or Administrative Unit||The Adaptation Fund is managed by the Adaptation Fund Board Secretariat, which provides research, advisory, administrative, and an array of other services to the Board. The Secretariat is based in Washington, D.C. and is comprised of a staff of 15-20 professionals. The list of current staff is available at: https://www.adaptation-fund.org/about/governance/secretariat/|
|Trustee||The World Bank is the Trustee of the Adaptation Fund on an interim basis. On behalf of the Fund, the World Bank performs two core functions. It sells the Certified Emission Reduction certificates that support the fund and manages the Adaptation Fund Trust Fund.|
Fund Finance and Access Modalities
|Conditions and Eligibility Requirements||Developing countries that are Parties to the Kyoto Protocol are eligible. The full list is available at: https://unfccc.int/process/parties
In addition, these countries 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.
|Accessing the Fund||
|Safeguards, Gender and Indigenous Peoples||
|Decision Making Structure||In the AF, decisions are taking by the:
Adaptation Fund Board
The Adaptation Fund Board meets at least twice a year. The meetings generally take place usually in Bonn, Germany unless the Board decides to convene in conjunction with meetings of the parties to the Kyoto Protocol (CMP) or the subsidiary bodies of the UN Framework Convention on Climate Change.
The Board is composed of 16 members and 16 alternates representing Parties to the Kyoto Protocol. Board members serve for a two-year term, renewable once. The composition is equitable with a majority of members (about 69%) representing developing countries. Board members are selected as follows:
An alternate is elected for each representative.
Decisions of the Adaptation Fund Board are taken by consensus. If all efforts at reaching a consensus have been exhausted, and no agreement has been reached, decisions are then taken by a two-thirds majority of the members present at the meeting on the basis of one member, one vote.
The list of actual Board Members and Board Alternates is available at: https://www.adaptation-fund.org/about/governance/board/
|Accountability Mechanisms||Implementing entities have to report to the Adaptation Fund on the progress achieved along the different stages of project implementation. The Methodologies for Reporting Adaptation Fund Core Impact Indicators offers guidance to project proponents on how to define and measure core indicators in order to assess progress at the project level.
In order to fulfil the reporting process requirements, implementing entities need to submit the following reports to the Adaptation Fund Board:
|Participation of Observers and Stakeholders||The level of consultation with civil society prior to the establishment of the Fund is not known.
Meetings of the AF are open to a group of observers composed by UNFCCC Parties, non-governmental organisations (NGOs) and other civil society organisations and International Organisations. To be able to participate to in AF Board Meetings, observers need to
|Transparency and Information Disclosure||The AF’s Open Information Policy details the Fund’s overall approach to information disclosure.
Contributions and Pledges are reported in the “Financial Status of the Adaptation Fund Trust Fund” or stated in meeting reports presented by the Adaptation Fund Board. These documents as well as other issues discussed by the Board and its two committees are available under the “Documents and Publications” tab of the official website.
Details about individual funded projects and access to project documents can be found at: https://www.adaptation-fund.org/projects-programmes/
|Other Issues Raised|