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 from the share of proceeds on the clean development mechanism (CDM) project activities and
other sources of funding. The share of proceeds amounts to 2% 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.
In decision 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.
The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) at its
ninth session welcomes 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.
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.
Review of the AF
In decision 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. The initial review of
the AF was concluded at CMP 8 and Parties requested the SBI at its thirty-eighth session to initiate
the second review of the AF in accordance with the terms of reference contained in the annex to
decision 6/CMP.6, or as these guidelines may be subsequently amended, and to report back to CMP 9,
with a view to undertaking the second review at CMP 10.
Based on the above, the CMP at its ninth session decided that the review will be undertaken in
accordance with the terms of reference contained in the annex to
decision -/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 at its fortieth session to consider the second review of the AF, with
a view to recommending a draft decision for consideration and adoption by 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 -/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.
Workshops on Accreditation of National Implementation Entities
More information on workshops on the accreditation of National Implementation Entities can be found