Development cooperation

Adaptation Fund

Description

The Adaptation Fund is a financing mechanism under the United Nations Framework Convention on Climate Change (UNFCCC) that focuses on financing projects and programs that help vulnerable communities in developing countries adapt to climate change. It was established under the Kyoto Protocol, but has also served the Paris Agreement since 2019. The fund aims to improve resilience to the impacts of climate change and reduce the vulnerability ofpeople, livelihoods and ecosystems. The fund finances adaptation projects and programs that are country-driven and based on the priorities of the recipient countries. Eligible countries are those that have ratified the Kyoto Protocol and are particularly vulnerable to the effects of climate change. Established in 2010, the Adaptation Fund has so far managed to channel $ 850 million into 123 concrete adaptation projects covering 100 countries. Half of these are LDCs and SIDS, and Africa is the largest single continent in terms of both number of projects and total value. More than 31 million beneficiaries have so far benefited from projects funded by the Adaptation Fund. Sectors in which the Adaptation Fund finances projects include climate-friendly agriculture, food security, water management and forests. AF operates under a separate board, secretarial services are provided by the Global Environment Facility (GEF) and the treasurer is the World Bank. In addition to Multilateral Implementing Entities, National and Regional Implementing Entities that meet the Fund's criteria can implement the projects of the Adaptation Fund. The largest implementers of the fund are UN organizations such as UNEP and UNDP, and its latest instruments are innovation financing windows, which support the development of new, even commercial, adaptation innovations. The Adaptation Fund focuses on delivering solutions to concrete challenges and has received praise for this from its developing country partners. Finland has supported the launch of the fund in 2008 (EUR 100,000), and in 2014 (EUR 5 million). Funding the Adaptation Fund supports the goal of increasing the share of adaptation to climate change in Finland's international climate finance.

More information

https://www.adaptation-fund.org/(layout.types.url.description)

Funding decision

7 000 000 €

Objectives monitored by OECD's Development Assistance Committee

  • Climate change - adaptation
  • Aid to environment
  • Disaster risk reduction

Field of activity

  • Multisector aid 100%

Funding channel

Sopeutumisrahasto

Contact

keo-90

Code for the object of funding

89849501

ID

UHA2021-006075

Modified

20.12.2021