The Adaptation Fund
Encyclopedia
The Adaptation Fund is an international fund that finances projects and programs aimed at helping developing countries to adapt to the harmful effects of climate change. It is set up under the Kyoto Protocol
of the United Nations Framework Convention on Climate Change
(UNFCCC).
(CDM) project activities, but also with funds from other sources. The share of proceeds amounts to 2% of certified emission reductions (CER) issued for a CDM project activity. At the end of July 2010, the AFB had around USD 160 million available to support adaptation. By the end of 2012 total potential resources from CER monetization is expected to be around USD 350 million . Other funding sources include donations from Annex 1 countries, which amounted to USD 70.95 million as of July 31, 2010.
The Adaptation Fund is managed by the Adaptation Fund Board (AFB) with the Global Environment Facility
(GEF) providing secretariat services to the Board, and the World Bank
serving as the trustee of the Adaptation Fund. The AFB is composed of 16 members and 16 alternates representing Annex I countries, Non-Annex I countries, Least Developed Countries (LDCs), Small Island Developing States (SIDS), and regional constituencies. The AFB meets every three months, during which the Board makes decisions on procedural issues and project approvals. More recently, the German Parliament has approved a bill that would confer legal capacity to the AFB ; it is expected to be signed by the President of Germany and subsequently to enter into force in early 2011.
The Adaptation Fund is unique in its disbursement modality since it promotes direct access to funds by developing countries through accredited National Implementing Entities.
National Implementing Entities (NIEs)
Multilateral Implementing Entities (MIEs)
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
of the United Nations Framework Convention on Climate Change
United Nations Framework Convention on Climate Change
The United Nations Framework Convention on Climate Change is an international environmental treaty produced at the United Nations Conference on Environment and Development , informally known as the Earth Summit, held in Rio de Janeiro from June 3 to 14, 1992...
(UNFCCC).
History
The Adaptation Fund was officially launched in 2007, although it was established in 2001 at the 7th Conference of the Parties (COP7) to the UNFCCC in Marrakech, Morocco , to finance concrete adaptation projects and programmes that reduce the adverse effects of climate change facing communities, countries, and sectors. It is intended to finance the full costs of adaptation in developing countries that are Parties to the Kyoto Protocol .Funding Mechanism
The Adaptation Fund is mainly financed with a share of proceeds from clean development mechanismClean Development Mechanism
The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...
(CDM) project activities, but also with funds from other sources. The share of proceeds amounts to 2% of certified emission reductions (CER) issued for a CDM project activity. At the end of July 2010, the AFB had around USD 160 million available to support adaptation. By the end of 2012 total potential resources from CER monetization is expected to be around USD 350 million . Other funding sources include donations from Annex 1 countries, which amounted to USD 70.95 million as of July 31, 2010.
The Adaptation Fund is managed by the Adaptation Fund Board (AFB) with the Global Environment Facility
Global Environment Facility
The Global Environment Facility unites 182 member governments — in partnership with international institutions, nongovernmental organizations, and the private sector — to address global environmental issues....
(GEF) providing secretariat services to the Board, and the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
serving as the trustee of the Adaptation Fund. The AFB is composed of 16 members and 16 alternates representing Annex I countries, Non-Annex I countries, Least Developed Countries (LDCs), Small Island Developing States (SIDS), and regional constituencies. The AFB meets every three months, during which the Board makes decisions on procedural issues and project approvals. More recently, the German Parliament has approved a bill that would confer legal capacity to the AFB ; it is expected to be signed by the President of Germany and subsequently to enter into force in early 2011.
The Adaptation Fund is unique in its disbursement modality since it promotes direct access to funds by developing countries through accredited National Implementing Entities.
Accredited Implementing Entities
By January 5, 2011, the AFB has accredited the following Implementing Entities:National Implementing Entities (NIEs)
- Agencia Nacional de Investigacion e Innovacion – Uruguay
- Centre de Suivi Ecologique – Senegal
- Planning Institute of Jamaica - Jamaica
Multilateral Implementing Entities (MIEs)
- Asian Development BankAsian Development BankThe Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
(ADB) - International Fund for Agricultural DevelopmentInternational Fund for Agricultural DevelopmentThe International Fund for Agricultural Development , a specialized agency of the United Nations, was established as an international financial institution in 1977 as one of the major outcomes of the 1974 World Food Conference. IFAD is dedicated to eradicating rural poverty in developing countries...
(IFAD) - The World Bank (International Bank for Reconstruction and Development)
- World Meteorological OrganizationWorld Meteorological OrganizationThe World Meteorological Organization is an intergovernmental organization with a membership of 189 Member States and Territories. It originated from the International Meteorological Organization , which was founded in 1873...
(WMO) - United Nations Development ProgrammeUnited Nations Development ProgrammeThe United Nations Development Programme is the United Nations' global development network. It advocates for change and connects countries to knowledge, experience and resources to help people build a better life. UNDP operates in 177 countries, working with nations on their own solutions to...
(UNDP) - United Nations Environmental Programme (UNEP)
- United Nations World Food Programme (WFP)