Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Adaptation Fund


From UPSC perspective, the following things are important :

Prelims level : Adaptation Fund

Mains level : Clean development mechanism

Adaptation Fund

  • The Adaptation Fund is an international fund that finances projects and programs aimed at helping developing countries to adapt to the harmful effects of climate change.
  • It is set up under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC).
  • The Adaptation Fund is managed by the Adaptation Fund Board (AFB).
  • The secretariat of the Adaptation Fund Board provides research, advisory, administrative, and an array of other services to the Board, and consists of an international staff based in Washington, DC.
  • The World Bank serves as the trustee of the Adaptation Fund.


  • The AFB is composed of 16 members and 16 alternates representing Annex I countries, Non-Annex I countries, Least Developed Countries (LDCs), Small Island Developing States (SIDSs), and regional constituencies.
  • The AFB meets three times per year in Bonn, Germany.
  • The German Parliament has conferred legal capacity to the AFB.

Funding mechanism

  • The Adaptation Fund was initiated to be primarily financed by a share of proceeds from clean development mechanism (CDM) project activities and also with funds from other sources.
  • The share of proceeds amounts to 2% of certified emission reductions (CER) issued for a CDM project activity.
  • As the market for carbon credits plunged, other funding sources became more critical for the Adaptation Fund, and include donations from Annex 1 countries.
  • One unique feature of the AF is its direct access mechanism which enables accredited national implementing entities (NIEs) and regional implementing agencies (RIEs) in developing countries to directly access climate adaptation financing.

Why in news?

  • Since 2010, the Adaptation Fund has directed $532 million to 80 concrete adaptation projects in the most vulnerable communities of developing countries, serving 5.8 million direct beneficiaries.
  • In 2018, the Fund raised $129 million in new pledges, a record-setting year.
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