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
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
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
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 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 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 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
Workshops on Accreditation of National Implementation Entities
More information on workshops on the accreditation of National Implementation Entities can be found