The decision to operationalize the Climate Change Adaptation Fund, taken in Bali last year, was of historic
importance. It acknowledged the urgent need to address the vivid adverse impacts of climate change - already
being felt by developing countries, in particular the poorest and most vulnerable – through predictable
and sustainable sources of funding.
The Adaptation Fund under the Kyoto Protocol is unique in the way its revenue is generated, namely through a
two per cent levy on the emission permits known as Certified Emission Reductions (CERs) that are generated by
emission reduction projects under the Kyoto Protocol’s Clean Development Mechanism (CDM). This unique
source of funding makes it predictable and reliable. The Adaptation Fund’s other two sister funds under
the Convention - the Special Climate Change Fund and the Least Developed Countries Fund, on the other hand,
are both reliant upon voluntary contributions from developed country parties to the Convention. The
Adaptation Fund also has the potential to grow exponentially, depending on the agreed outcome next year in
Copenhagen on a strengthened international climate change agreement.
The Adaptation Fund indeed represents a significant step forward in delivering funding for developing
countries to deal with the impacts of climate change. It also marks the beginning of a true international
commitment to address the adaptation needs of those developing countries that are suffering most from the
impacts of climate change particularly African countries, Least Developed Countries and Small Island
Developing States. Rising sea levels, coastal inundation and shortages of water and food are putting
billions of people in developing countries at risk. These impacts are set to worsen in the future, making
Within the Adaptation Fund Board, we are taking every effort to accelerate the financing of adaptation
projects in order to strengthen the resilience of the most vulnerable countries. The Board faces the
formidable task of ensuring that this unique Fund lives up to the expectations of developing countries, and
that mechanisms are put in place as soon as possible to allow direct and quick access to the available
The estimated $400 million USD that the Fund is expected to contain by 2012 may seem trivial compared to the
projected annual costs for adaptation of tens of billions of dollars, as estimated last year by the UNFCCC
secretariat. The Fund is nevertheless an important source for addressing the most pressing adaptation needs
in the most vulnerable poor developing countries.
It is clear that current resources are insufficient to meet the adaptation needs of developing countries.
While adaptation support can, and is being undertaken through other financial channels, to remain truly
committed to the multilateralism envisaged within the UNFCCC in addressing the impacts of climate change, the
Adaptation Fund needs to remain the principal channel for adaptation support to developing countries. This
Fund needs to grow in accordance with the expanding adaptation needs of developing countries. It is my belief
that the international community will help enable this by agreeing on additional carbon market sources for
the Fund as part of a strengthened international climate change agreement, hopefully by the end of next year.