1. Mr. President of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, Distinguished delegates, representatives of the civil society, ladies, and gentlemen.

2. It is a great honor and pleasure to present the report of the Adaptation Fund Board, which comprises the work undertaken throughout its three meetings in 2013.

3. Mr. President, as of today the Fund has allocated almost 200 million dollars to 30 concrete adaptation projects and programmes in 29 countries. Six of these are in Small Island Developing States and 11 are in Least Developed Countries. The Board has accredited 15 national, 3 regional, and 10 multilateral Implementing Entities. The Fund’s current portfolio will result in 2.3 million direct beneficiaries, 85 early warning systems, 82,000 meters of protected coastline, and 80,000 hectares of restored or preserved natural habitat. Also, to create local sustainability of adaptation projects, over 7,000 people will be trained in climate resilience measures.

4. The Board can be proud of the results achieved over the course of the reporting period through the implementation of its portfolio. In 2013 it strengthened the Fund’s policies and procedures by approving a comprehensive and forward-looking environmental and social policy, and an open information policy. It joined the International Aid Transparency Initiative and enhanced the accountability of implementing entities by modifying its operational policies and guidelines. It continued fostering the direct access modality and approved a readiness programme to assist national and regional implementing entities. The Board disbursed additional tranches of funds to already approved projects and programmes based on the achievement of agreed results. Finally, it approved two new direct access projects and accredited two regional implementing entities.

5. Mr. President, in spite of these positive developments, the Fund, due to prevailing market conditions, is confronted with a dire financial situation. Eight proposals from multilateral implementing entities have been placed in a pipeline until new resources become available in line with the Board’s decision to allocate 50 percent of the Fund’s resources to projects/programmes submitted through multilateral implementing entities.  These proposals are fully-vetted, and are ready to be funded and implemented as adequate resources become available. Resources are still available for the 10 national implementing entities and 3 regional implementing entities that have yet to have a project proposal approved.

6. The Fund will, without additional support, most likely commit all available resources by the end of 2014. This is also good news and demonstrates that the Adaptation Fund operates effectively and efficiently.

7. In 2012, the Board established a fundraising target of USD 100 million to be met by end of 2013. I regret to inform you Mr. President that we have not yet met the target.

8. Let me now thank the donors that contributed to the Fund in 2013, Sweden and the Brussels Capital Region in Belgium.

9. In closing Mr. President, let me acknowledge the priceless contribution of the Adaptation Fund NGO Network. The inputs provided have helped us to improve the Fund’s operations and enhanced its accountability and transparency.

10. The Adaptation Fund is one of the most innovative and unique climate funds, and has achieved impressive progress in a relatively short period of time. The Fund is a pioneer in building a focused, effective, and transparent climate adaptation financing instrument that directly aids the most vulnerable communities in developing countries. It is the only climate adaptation fund that includes these vulnerable communities as a strategic priority. Today, due to market forces that have diminished its primary revenue stream, the Adaptation Fund needs your support to continue its critical climate adaptation work.