The Adaptation Fund was established in 2001 to finance concrete adaptation projects and programmes in
developing country Parties to the Kyoto Protocol that are particularly vulnerable to the adverse
effects of climate change.
The Adaptation Fund is financed with a share of proceeds from the clean development mechanism (CDM) project activities and
other sources of funding. The share of proceeds amounts to 2 per cent of certified emission reductions (CERs)
issued for a CDM project activity.
The Adaptation Fund is supervised and managed by the Adaptation Fund
Board (AFB). The AFB is composed of 16 members and 16 alternates
and meets at least twice a year (Membership of the AFB).
Upon the request at CMP 8, the secretariat prepared a technical paper,
based on the experiences of bodies under the Convention and the wider United Nations system, on the
process of selecting host institutions for entities under the Convention and the wider United Nations
system, including the steps and time frames required to conduct open and competitive bidding
processes, for consideration by SBI 38.
1/CMP.8, the Parties decided that for the second commitment period, the Adaptation Fund shall be
further augmented through a 2 per cent share of the proceeds levied on the first international
transfers of AAUs and the issuance of ERUs for Article 6 projects immediately upon the conversion to
ERUs of AAUs or RMUs previously held by Parties.
Adaptation Fund membership
For information on the election and membership of the bodies of the Convention and the Kyoto
Protocol please click here.
CMP 9 welcomed the financial contributions that have been made to the AF in 2013 by the Government
of Sweden and the Brussels-Capital Region in Belgium, and the pledges of contributions to the AF made
by the Government of Austria, Belgium, Finland, France, Germany, Norway and Switzerland, which enabled
the AF to achieve its goal of the USD 100 million fundraising by the end of 2013.
At the same time, the CMP continued to encourage Parties included in Annex I to the Convention and
international organizations to scale up funding with a view to reaching the Board’s fundraising
goal from resources that are additional to the share of proceeds relating to CERs, AAUs and ERUs. At
its 23rd meeting in March 2014, the AFB set the new fundraising target of USD 80 million per calendar
year in 2014 and 2015.
The CMP also decided that an account held in the CDM registry for the AF shall be the recipient of the
2 per cent share of proceeds regarding AAUs and ERUs. In this context, Parties requested the AFB:
- To consider the arrangements for the monetization of the 2 per cent share of proceeds regarding
AAUs and ERUs and to forward a recommendation to CMP 10;
- To develop and approve the legal arrangements with the trustee regarding the services for the 2
per cent share of proceeds regarding AAUs and ERUs for approval by the CMP.
Second review of the AF
1/CMP.3, paragraph 33, the CMP decided to undertake a review of all matters relating to the AF,
including the interim institutional arrangements (the secretariat and the trustee) every three years.
Following the initial review of the AF concluded at CMP 8, the CMP decided that the second review
will be undertaken in accordance with the terms of reference contained in the annex to decision
2/CMP.9. In implementing the second review, the CMP requested the AFB to make available in its
report to CMP 10, information on the financial status of the AF, with a view to finalizing the second
review of the AF at the same session.
The CMP also requested the SBI 40 to consider the second review of the AF, with a view to
recommending a draft decision for consideration and adoption at CMP 10. Furthermore, the CMP
requested the secretariat to prepare a technical paper based on the terms of reference contained in
the annex to
decision 2/CMP.9, taking into account the deliberations and conclusions of SBI 40, for
consideration by SBI 41. In this context, the CMP also invited the AFB to provide, in its report to
CMP 10, its views on the matters included in the terms of reference for the second review of the AF,
taking into account the deliberations and conclusions of SBI 40.
Based on the decision above, SBI 40 considered the second review and prepared draft
conclusions including the invitation to Parties and relevant stakeholders to submit further views
on the second review and the request to the secretariat, when preparing the technical paper requested
at CMP 9, to take into consideration the views expressed by Parties at the fortieth session and
the written submissions provided before and at the session.
You can find the relevant documents as below: