The Adaptation Fund was established to finance concrete adaptation projects and programs in developing countries that are parties to the Kyoto Protocol and are particularly vulnerable to the adverse effects of climate change. Adaptation Fund investments predominantly support food security, agriculture, water management, and disaster risk reduction projects for the promotion of community resilience. Uniquely, financing for the Adaptation Fund comes mainly from sales of certified emission reductions (CERs). The share of proceeds amounts to 2 percent of the value of CERs issued each year for Clean Development Mechanism (CDM) projects. The Fund is also financed in part by government and private donors.
Activities supported include:
- Water resources management, land management, agriculture, health, infrastructure development, fragile ecosystems;
- Improving the monitoring of diseases and vectors affected by climate change, and related forecasting and early-warning systems, and in this context improving disease control and prevention;
- Supporting capacity building, including institutional capacity, for preventive measures, planning, preparedness and management of disasters relating to climate change; and
- Strengthening existing and, where needed, establishing national and regional centres and information networks for rapid response to extreme weather events, utilising information technology as much as possible.
For information on accessing Adaptation Fund Readiness support, please see a separate entry here.
National and regional implementing entities fall under the Adaptation Fund’s Direct Access modality, which enables direct access to financing and management of all aspects of projects, from design through implementation, to monitoring and evaluation. Direct Access allows developing countries to strengthen capacity to adapt to climate change and build on local expertise. National entities with institutional capacity constrains have the option of obtaining accreditation via the Streamlined Accreditation Process. If successful they can access a smaller amount of funding than the usual, while working on strengthening their capacities to meet the accreditation requirements through the usual documentation, as appropriate.
Project Formulation Grants (PFGs) are available to accredited national implementing entities (NIEs) to build the capacity of NIEs in project preparation and design. NIEs that are in the concept development stage of the Fund’s project cycle process can request a PFG up to USD 30,000 together with their submission of the project concept to the Board.
Additionally, Project Formulation Assistance (PFA) grants of up to USD 20,000 are available to help NIEs tap into external expertise in the form of short-term consultant assignments to undertake specific technical assessments such as an environmental impact assessment (EIA), vulnerability assessment (VA), risk assessment, gender study, and other environmental and social assessments. The PFA grant application form can be requested when NIEs submit their project concepts during the two-step approval process.
In order to become accredited, entities are required to meet the legal and fiduciary standards adopted by the Board as detailed in the Operational Policies and Guidelines.
Check here for updates on requests for proposals and application guidelines.
USD 476 million
The Adaptation Fund Board accepts and considers project and program proposals three times a year. The next submission deadline can be found on the calendar, on this website.