(Washington, DC, 28 March 2014): The Adaptation Fund Board approved financing for climate adaptation preparation in India and Morocco, and accredited three new implementing entities at its twenty-third Board meeting, held in Bonn, Germany.
A hallmark of the Adaptation Fund, its direct access modality, was bolstered in several Board decisions. After passing the Fund’s rigorous accreditation review process, the Board accredited three new implementing entities, which will be able to directly tap into financing from the Fund. Peru’s PROFONANPE was accredited as a National Implementing Agency (NIE),the Corporacion Andina de Fomento (CAF) was accredited as a Regional Implementing Entity (RIE), and the European Bank for Reconstruction and Development was accredited as a Multilateral Implementing Entity (MIE).
India’s National Bank for Agriculture and Rural Development (NABARD) , already an accredited national implementing entity, will receive funding to design project proposals. These project formulation grants will cover proposal development for projects ranging from building climate resilience agriculture and water management in Tamil Nadu and Rajasthan states, improving the adaptive capacity of fishermen in Madhya Pradesh state, to developing climate resilient livelihood systems for rural farmers in West Bengal state.
Morocco’s accredited national implementing entity, Agence pour le Développement Agricole (ADA) will receive a project formulation grant to develop a project aiming to increase the climate resilience capacity of vulnerable people and agriculture ecosystems in oasis zones.
To increase transparency, demonstrate value for money, and better track progress toward impact of its funded initiatives, the Board approved five core indicators. These indicators will be tracked at the project level and aggregated to provide snapshots of the Fund’s results across the portfolio.
Following its successful fundraising campaigns of 2012-2013, which surpassed its US$ 100 million fundraising goal, the Fund’s Board set new annual fundraising targets of US$ 80 million per year for calendar years 2014 and 2015. The Fund, originally set up to be primarily funded by a two percent levy on climate change mitigation projects, has been hard hit by low carbon market prices since 2011, which has prompted it to turn to donors and other sources of funding.
The Adaptation Fund finances projects and programmes that help vulnerable communities in developing countries adapt to the negative effects of climate change. Initiatives are based on the country needs, views and priorities. The Adaptation Fund was established under the Kyoto Protocol of the UN Framework Convention on Climate Change, and has committed US$ 226 million in 33 countries since 2010 to help vulnerable communities in developing countries adapt to climate change. The Fund is financed in part by government and private donors, and also from a two percent share of proceeds of Certified Emission Reductions (CERs) issued under the Protocol’s Clean Development Mechanism projects.