Adaptation Fund

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

Adaptation Fund (AF) is a new innovative financing instrument for Adaptation. The decision to operationalise AF was made at Bali Climate Change COP in December 2007. The Adaptation Fund was established to finance concrete adaptation projects and programmes in developing countries that are parties to the Kyoto Protocol and are particularly vulnerable to the adverse effects of climate change. Financing for the Adaptation Fund comes mainly from sales of certified emission reductions (CER). The share of proceeds amounts to 2 per cent of the value of CERs issued each year for Clean Development Mechanism projects. The fund also receives contributions from governments, the private sector, and individuals. The Adaptation Fund is supervised and managed by the Adaptation Fund Board, the Global Environment Facility serves as the secretariat and the World Bank as the interim trustee. Implementing entities are the national (NIE), regional (RIE) and multilateral (MIE) institutions accredited by the Adaptation Fund Board to receive direct financial transfers from the Fund in order to carry out adaptation projects and programmes. Finland provided 100 000 euros in 2008 as a start-up support, of which a pro-rata share was later transferred to the main trust fund. As the the CER monetization has not provided sufficient amount of income donors decided in Warsaw (COP19) to make contributions to the fund, Finland among them. The proposed 5 million euros is coming from the revenues from the EU’s emission trade scheme.