Briefing Note
Total Page:16
File Type:pdf, Size:1020Kb
Briefing Note The Adaptation Fund (AF) finances projects that help vulnerable communities in developing countries adapt and build resilience to the effects of climate change while providing an innovative direct access modality that allows accredited national institutions in developing countries to access financing and manage projects directly. Reviewed & Approved Pioneering Adaptation The AF creates tangible, positive results on the ground, focusing on adaptation Efficient Finance and strengthening capacity in developing - Direct Access Effective countries for all climate finance mechanisms. - Replicable, scalable The AF has demonstrated its effectiveness as Relevant - Flexible, localized a global financial mechanism. Key achievements of the Adaptation Fund The Paris Agreement Operationalization of direct access Proven ability to ensure an accelerated, and the Adaptation Fund ✓ to climate finance, allowing national ✓ simplified, efficient and effective The Paris Agreement includes adaptation as a key institutions to take on the implementation project cycle combined with orientation component of the global response to climate change, role typically undertaken by UN towards results and performance-based and the Adaptation Fund is contributing to the organizations and MDBs. Throughout the measurements; objectives of the Agreement. Moreover, the decision accreditation process, national entities build Record high of US$ 268 million in new taken by the first meeting of the Parties to the Paris and enhance local capacity. The Direct ✓ funding requested across record 40 Agreement (CMA) recognizes that the AF should formally Access model, pioneered by the AF, has proposals for the 33rd Adaptation Fund serve the Agreement. Following a decision by Kyoto proven replication value for other climate Board meeting in March 2019, which shows member Parties during COP23 that AF should formally financing organizations, such as the Green growing demand for adaptation projects; serve the Agreement, during COP24, the CMA decided Climate Fund (GCF); the Fund shall serve the Paris Agreement, starting from Three new small grant funding windows Medium-term strategy 2018-2022 January 1st, 2019. The new market mechanisms of the ✓ (innovation grants, project scale-up grants adopted in October 2017 emphasizing Paris Agreement also provide an opportunity to utilize ✓ and learning micro-grants) with total of pillars of Action, Innovation and Learning. the Fund’s experience on monetizing carbon assets. US$ 5 million approved in 2018, Strategy implementation plan approved To date, the AF has raised US$ 201.18 million through are aimed at scaling up and accelerating in March 2018 to accelerate and enhance carbon markets – a system that is fully operational. AF’s innovative and effective work on the quality of adaptation action, scale up ground and sharing its knowledge; The Paris Agreement promotes human rights by proven innovations, and share knowledge acknowledging climate change should be addressed in of effective adaptation. The strategy is Fast-track Adaptation Fund accreditation a way that respects vulnerable populations and gender aimed at empowering the most vulnerable, ✓ process approved in 2018 for equality. The AF has stayed ahead of this curve, adopting advancing gender equality, strengthening implementing entities that have already a policy in 2013 that ensures any projects supported capacity, and building complementarity; been accredited by the Green Climate Fund (GCF). A similar process exists for AF entities by the Fund must promote positive environmental Relevance, efficiency and effectiveness to be fast-tracked by GCF; and social benefits, including respecting human rights, ✓ of AF projects and programmes validated gender equality and vulnerable groups, something that with high marks by the second phase of Funding window for regional projects has been specifically acknowledged, among others, the independent evaluation of the Fund ✓ and programmes incorporated as a by the United Nations Special Rapporteur on human in June 2018; standing part of the Fund’s operations rights and the environment. AF further streamlined to enable adaptation projects that cross Implementation of Readiness Programme equal access across all Fund programmes and resources borders; among women and men in March 2016 by approving a ✓ for Climate Finance to build countries’ capacities to access funding and develop Serves the Paris Agreement as of Jan gender policy and action plan. projects for climate adaptation through ✓ 1, 2019, following a decision at COP24, regional and global knowledge sharing which recognizes the important role of the workshops, field visits and webinars, grants Fund in climate finance; LONG-TERM for technical assistance and South-South Active civil society involvement cooperation; ✓ at various levels, such as allowing CLIMATE FINANCE Strong, transparent safeguards in comments on proposals under ROADMAP ✓ adaptation projects and principles that consideration, monitoring during promote human rights and gender implementation, and participation in • Roadmap established equality while protecting marginalized Board meetings; by COP21 groups and natural habitats; Adaptation Fund raised a single-year • Landmark CMP decision at Record amount of US$ 104.5 million of ✓ record US$ 129 million in new funding COP23 that AF shall serve ✓ funding for new projects approved in 2017; in 2018, showing the great trust placed the Paris Agreement in its work for the most vulnerable • AF serves Paris Agreement communities of developing countries as of Jan 1, 2019 around the world. www.adaptation-fund.org May 2019 Briefing Note The Adaptation Fund portfolio of concrete adaptation projects and programmes The AF has transferred about 55 per cent of total committed funds to recipient countries. In total, US$ 564 million has been allocated for climate adaptation projects/programmes, project US ANNUAL formulation activities, South-South cooperation grants for No predictable $90M INCOME accreditation support and environmental and social policy funding source technical assistance grants, in a total of 85 countries with the per year TARGET majority of projects now in the implementation stage (see minimum Annex II). DEMAND IS HIGH: US$314M PROJECT PIPELINE UNDER DEVELOPMENT An opportunity to channel finance to effective 84 $564 million adaptation to climate change current tangible committed to The AF is one of the most innovative and unique climate funds, and has PROJECTS 85 countries achieved impressive progress in just a few years. The AF has proven its effectiveness as a highly efficient and transparent framework for directly channeling adaptation finance to developing countries. It is the only climate adaptation fund that includes the 85 18 29 most vulnerable communities as a COUNTRIES: SIDS LDCS strategic priority. ADAPTATION IS UNDER-FUNDED The original source of revenue for the Fund – the sale of Certified Emission Climate Funding Currently 47 implementing entities are accredited to the AF Reductions (CERs) accrued through a of which 29 are National Implementing Entities in Africa, Latin 2 per cent levy on Clean Development Adaptation America and the Caribbean, and Asia-Pacific that have direct Mechanism projects – has drastically access to adaptation financing. So far, 26 NIEs have received diminished due to market forces. The funding. The AFB and its secretariat actively collaborate with Board has continued to attract funds Mitigation other climate funds, such as the Green Climate Fund, and through developed country donations, share lessons learned from the unique experience of eight by delivering concrete, effective, and years implementing direct access to climate finance. localized projects and continuing to innovate through pioneering programmes like Direct Access, OECD report: $62B annual Adaptation Fund flexible finance modalities, social climate funding, but only 16% Investments and environmental risk management for adaptation projects policies and gender action plans. The FORESTS URBAN Fund also developed an alternative DISASTER RISK 1% DEVELOPMENT REDUCTION 2% streamlined accreditation process to open doors to climate finance for smaller 14% FOOD countries and organizations, and further has in place an innovative funding SECURITY window for regional projects and programmes for multiple countries facing COASTAL ZONE 21% MANAGEMENT climate change issues that cross borders. 9% The Board has established a cap of 50 per cent of the cumulative resources in the trust fund for projects submitted by MIEs in order to ensure that all accredited WATER MULTISECTOR MANAGEMENT NIEs can receive funding for at least one project. However, funding requests 13% 14% for the 33rd Adaptation Fund Board meeting in 2019 hit a record high of US$ 268 million with 40 project proposals, and with more funding and sustainable RURAL funding sources, AF could address that growing demand. As a strong signal of DEVELOPMENT AGRICULTURE 10% 16% support, the Adaptation Fund broke its single-year resource mobilization record with US$ 129 million in new pledges for 2018-2019, and these pledges will help the AF reach even more vulnerable communities in developing countries with urgently needed climate adaptation solutions. For more information on the Fund, please contact the Adaptation Fund Board secretariat: [email protected] www.adaptation-fund.org Annex I: Implementing Entities of the Adaptation Fund Accessing Resources from the Adaptation Fund Potential implementing entities are evaluated