The Adaptation Fund (AF) 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 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).
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
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.
After the pledges have surpassed the abovementioned initial fundraising target, the AFB, at its 23rd meeting in
March 2014, set another target for the resource mobilization strategy of USD 80 million per calendar year in
2014 and 2015 to support the approved projects and programmes. As of December 2014, Germany has made a pledge
of EUR 50 million towards the new target. CMP 10 continued to encourage Parties included in Annex I to the
Convention to provide funding to support the target.
With regard to the revenue streams of the Fund, CMP 9 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. Based on the
recommendations from the AFB included in its report to CMP 10, Parties adopted the amendment to the terms and
conditions of services to be provided by the International Bank for Reconstruction and Development (the World
Bank) as trustee for the Adaptation Fund, on an interim basis, which include the legal arrangements regarding
the services for the 2 per cent share of proceeds regarding AAUs and ERUs. In this regard, CMP 10 requested the
AFB to provide further clarity on the effect of the fluctuation of the price of certified emission reductions
and the impact of this fluctuation on the resources available to the Fund.
Second 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. 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
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.
Based on the deliberations and conclusions made at SBI 40, the technical paper mentioned above and the views
from Parties and the AFB on the second review, CMP 10 requested the AFB to:
- Consider options for addressing the diversification of revenue streams of the AF;
- Consider, under its readiness programme for climate finance, a) targeted institutional strengthening
strategies to assist developing countries, in particular the least developed countries, to accredit more
national or regional implementing entities to the AF and b) ensuring that accredited national implementing
entities have increased and facilitated access to the AF, including for small-size projects and programmes;
- Consider options for developing operational linkages, as appropriate, between the AF and constituted
bodies under the Convention, taking into consideration the mandates of the respective bodies;
In this context, COP 20 requested the Standing Committee on Finance, in decision
-/CP.20, to consider issues related to possible future institutional linkages and relations between the
AF and other institutions under the Convention.
In addition, CMP 10 decided to extend to June 2017 the interim arrangements with the AFB secretariat and the
AF trustee, with a view to further consideration by the CMP of options for permanent institutional
arrangements for the secretariat and the trustee. Furthermore, the CMP requested the SBI to initiate the
third review of the AF at its forty-fourth session in 2016, with a view to the review being undertaken by CMP
13 in 2017.
You can find documents relevant to the second review as below: