The Adaptation Fund (AF)

Focus
Adaptation
Method of Support
Grants
Eligible Countries
All developing countries that are Parties to the Kyoto Protocol.
Funds Pledged
USD 478.7 million
Funds Received
USD 471.63 million
Funds Approved
USD 291.82 million
Funds Disbursed
USD 139.58 million
Source: The World Bank Group – Financial Intermediary Funds. “Adaptation Fund Trust Fund Financial Report.” (As of Dec 2014)
TIPS by USAID Adapt Asia-Pacific

There is no funding currently available for a large number of projects already approved for multilateral and regional implementing entities. There is still money, however, for direct access. Therefore, countries need to continue working towards accreditation.

This means strengthening fiduciary standards and improving transparency. Currently India’s National Bank for Agriculture and Rural Development is the only national implementing entity accredited in Asia-Pacific. Proposal submission materials and templates can be found on the fund’s website.

About
The Adaptation Fund is a multilateral fund under the United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol.  The fund was established in 2001 to finance concrete adaptation projects and programs and became operational in 2009. The Adaptation Fund will finance concrete adaptation projects and programs whose principal and explicit aim is to adapt to impacts of climate change and increase climate resilience. A concrete adaptation project/program is defined as a set of activities aimed at addressing the adverse impacts of and risks posed by climate change. The activities shall aim at producing visible and tangible results on the ground by reducing vulnerability and increasing the adaptive capacity of human and natural systems to respond to the impacts of climate change, including climate variability.
Target area
There are no prescribed sectors or approaches but so far the fund has supported climate change adaptation in the following sectors: water resources management, land management, agriculture, disaster risk reduction, infrastructure development, fragile ecosystems, including mountainous ecosystems, and integrated coastal zone management.  All projects and programs funded need to include a knowledge component.
How to access the fund
Multilateral, regional, and national organizations which have been accredited by the Adaptation Fund Board as implementing entities can submit project proposals for approval by the Board. A proposal must be submitted at least nine weeks prior to a Fund’s Board meeting. Up to 50% of fund’s resources can be accessed by multilateral implementing entities (MIEs), while 50% is reserved for direct access by national implementing entities (NIEs). Regular adaptation project and program proposals i.e. those that request funding exceeding USD 1 million, would undergo either a one-step, or a two-step approval process. A small sized project (less than 1 million USD) would undergo a one-step process.  In case of the one step process, the proponent would directly submit a fully-developed project proposal. In the two step process, the proponent would first submit a brief project concept, which would be reviewed by the Project and Program Review Committee (PPRC) and would be endorsed, not endorsed or rejected by the Board. In the second step, the fully-developed project/program document would be reviewed by the PPRC, and would be approved, not approved or rejected by the Board.
Approval process

Regular adaptation project and program proposals undergo either a one-step or a two-step approval process.

A small-sized project, one requiring a contribution from the Adaptation Fund of less than USD 1 million, requires a one-step approval process where the implementing entity directly submits a fully-developed project proposal to the Adaptation Fund Board for approval.

For projects larger than USD 1 million, a two-step process is necessary. In this case, the Implementing Entity must first submit a brief project concept, which would be either endorsed, not endorsed, or rejected by the Board. If endorsed, a second step would then require that the implementing entity submit a fully-developed project or program document to be similarly approved, not approved, or rejected by the Board.