Adaptation Fund: enhancing implementation of the Paris Agreement - PowerPoint PPT Presentation

Adaptation Fund: enhancing implementation of the Paris Agreement through innovative finance and concrete action Bonn , 11 May 2017

Outline of Pr e se ntation • Ba c kg ro und o f the Ada pta tio n F und a nd c urre nt sta tus o f o pe ra tio ns • Re c e nt de ve lo pme nts in the F und to furthe r e nha nc e its e ffe c tive ne ss • Ada pta tio n F und a nd the Pa ris Ag re e me nt

Outline of Pr e se ntation • Ba c kg round of the Ada pta tion F und a nd c urre nt sta tus of ope ra tions • Re c e nt de ve lo pme nts in the F und to furthe r e nha nc e its e ffe c tive ne ss • Ada pta tio n F und a nd the Pa ris Ag re e me nt

Adaptation F und inc r e ase s r e silie nc e thr ough c onc r e te adaptation pr oje c ts • Innova tive F e a ture s:  Go ve rne d b y ma jority of de ve loping c ountrie s  L e vy on Cle a n De ve lo pme nt Me c ha nism proc e e ds & o the r so urc e s o f funding  Dir e c t ac c e ss a lo ng side c o nve ntio na l a c c e ss thro ug h inte rna tio na l o rg a niza tio ns

E xpe r ie nc e on funding Climate Adaptation Sinc e inc e ption, the F und has mobilize d ove r 630 million dollar s in r e sour c e s. US$ 198 million c ame fr om CE R pr oc e e ds and US$ 433 million fr om de ve lope d c ountr ie s’ c ontr ibutions. T he r e sour c e s alloc ate d so far amount to US$ 417 million in 65 c ountr ie s, of whic h 24 ar e L DCs and 14 SIDS. T he Adaptation F und c ur r e ntly funds 63 c onc r e te , loc alize d adaptation and r e silie nc e pr oje c ts in 53 vulne r able c ountr ie s with 5.4 million dir e c t be ne fic iar ie s. Its pr oje c ts ar e e ffe c tive , fle xible a nd sc ala ble , and c an be r e plic ate d in othe r c ommunitie s.

Sinc e 2010 the F und ha s a pprove d US$ 417 million for 65 c ountrie s 63 c onc r e te pr oje c ts 37 imple me nte d • b y MI E s 4 imple me nte d • b y RI E s 22 imple me nte d • b y NI E s F unds available for ne w pr oje c ts: F o r MI E s: • US$ 67.0 M F o r NI E s/ RI E s: • US$ 108.5 M F o r re g io na l • pro je c ts: US$ 45.0 M

T he F und’s main r e ve nue sour c e is CE R sale s but the c ollapse of c ar bon mar ke ts me ans ne w r e sour c e s ar e ne e de d CE R pr ic e s have c ollapse d Contr ibutions now the main sour c e of funds Inve stme nt inc ome US$ 8.1 M CE R inc ome US$ 197.7 M Contr ibutions US$ 433.3 M F undra ising prog re ss / ta rg e ts: 2012-13: US$ 103.4 M / US$ 100 M 2014: US$ 64.4 M / US$ 80 M 2015: US$ 75.8 M / US$ 80 M 2016: US$ 81.5 M / US$ 80 M 2017: US$ 0 M / US$ 80 M Ac tive pipe line of proje c ts: US$ 200.9 M (a s o n 11 Ma y 2017)

T he numbe r of dire c t a c c e ss e ntitie s is inc re a sing 43 Imple me nting E ntitie s 25 NI E s • 6 RI E s • 12 MI E s • Dire c t Ac c e ss , whe re b y a c o untry c a n a c c e ss funds dire c tly fro m the AF a nd o the r funds a do pting simila r mo da lity to ma na g e a da pta tio n/ mitig a tio n pro je c ts, re q uire s a n a c c re dite d Na tio na l I mple me nting E ntity me e ting the funds’ fiduc ia ry sta nda rds, e nviro nme nta l a nd so c ia l sa fe g ua rds a nd g e nde r po lic y

Outline of Pr e se ntation • Ba c kg ro und o f the Ada pta tio n F und a nd c urre nt sta tus o f o pe ra tio ns • Re c e nt de ve lopme nts in the F und to furthe r e nha nc e its e ffe c tive ne ss • Ada pta tio n F und a nd the Pa ris Ag re e me nt

L e sson: Support for dire c t a c c e ss re a dine ss is ne e de d - Re a dine ss Prog ra mme la unc he d in 2014 Convening actors working on Designing improved direct access (accreditation, materials on AF project development, capacity processes building) Small grants: Developing a knowledge - South-south cooperation exchange platform: - Environmental and Social climatefinanceready.org technical assistance

Polic y: Ac c re dita tion of sma ll e ntitie s – AF stre a mline d proc e ss  Sma ll g o ve rnme nts (e .g . in SI DS a nd L DCs) ma y no t ha ve suita b le NI E c a ndida te s tha t a re a b le to a c c e ss up to USD 10 millio n  AF B a ppro ve d a mo difie d a c c re dita tio n pro c e ss “fit fo r purpo se ” fo r sma ll e ntitie s in April 2015  F irst e ntitie s to b e ne fit: Mic ro ne sia Co nse rva tio n T rust, Co o k I sla nds Ministry o f F ina nc e a nd E c o no mic Ma na g e me nt, Arme nia n E nviro nme nta l Pro je c t I mple me nta tio n Unit

Polic y: E nvironme nta l a nd Soc ia l (Nove mbe r 2013) a nd Ge nde r Polic y (Ma rc h 2016) E nvir onme ntal and Soc ial Polic y now r olle d out to ope r ations and Ge nde r polic y appr ove d in Mar c h 2016 At ac c r e ditation stage :  I n a dditio n to o ve ra ll risk ma na g e me nt c a pa c ity: syste ms to a sse ss, mitig a te a nd ma na g e e nviro nme nta l a nd so c ia l risk a nd the c o mmitme nt to g e nde r e q ua lity At pr oje c t pr oposal stage :  Sc re e ning a g a inst 15 princ iple s o f the E SP  Ca te g o riza tio n o f pro po se d pro je c t  E SI A, E SMP  Grie va nc e me c ha nism

F ina nc ing Re g iona l Ac tivitie s  L a unc he d in 2015 with initia l va lue USD 30 millio n  Ope n to RI E s a nd MI E s, pa rtne ring with NI E s a nd o the r na tio na l a g e nc ie s  T he me s: F o o d se c urity, DRR & E WS, T ra nsb o unda ry wa te r ma na g e me nt, I nno va tio n in a da pta tio n fina nc e  Hug e inte re st a fte r first c a ll in Ma y 2015: pro po sa ls to ta ling c a . US$ 130 millio n  Oc tobe r 2016: c all e xte nde d be yond pilot  F ir st r e gional pr oje c t appr ove d in Mar c h 2017

Ada pta tion F und me dium- te rm stra te g y  T o b e b a se d o n the g o a ls o f:  Artic le 7 o f the Pa ris Ag re e me nt  SDG 13.1  Ste pwise pro c e ss  Ste p 1: F ra me wo rk (Oc t 2016)  Ste p 2: E le me nts (Ma r 2017)  Ste p 3: De ve lo pme nt o f stra te g y (Ma y-Oc t 2017)  Multi-sta ke ho lde r pro c e ss  Ste p 1-2: I nte nsive sta ke ho lde r inte rvie ws  Ste p 3: pub lic c o mme nting , disc lo sure

Outline of Pr e se ntation • Ba c kg ro und o f the Ada pta tio n F und a nd c urre nt sta tus o f o pe ra tio ns • Re c e nt de ve lo pme nts in the F und to furthe r e nha nc e its e ffe c tive ne ss • Ada pta tion F und a nd the Pa ris Ag re e me nt

E va lua tion: Pha se I (2014- 2015)  Re le vanc e : AF de sig n is c o he re nt with a nd c o mple me nta ry to o the r a da pta tio n e ffo rts unde r UNF CCC  E ffe c tive ne ss: AF ma in pro c e sse s a re g e ne ra lly e ffe c tive a nd de mo nstra te ste a dy impro ve me nt, with the e xc e ptio n o f re so urc e mo b iliza tio n a nd kno wle dg e ma na g e me nt  E ffic ie nc y: AF a nd its institutio na l a rra ng e me nts pro vide g o o d va lue fo r mo ne y  Sustainability: sig nific a nt, struc tura l thre a t to the susta ina b ility, a de q ua c y, a nd pre dic ta b ility o f re so urc e s fo r the AF  Phase II (2017- 2018): fo c us o n pro je c t a nd pro g ra mme o utc o me s  T e vie w o f the Ada pta tio n F und (2017) hir d r

Ada pta tion F und time line to se r ve the Pa r is Ag r e e me nt 2015: De c ision 1/ CP.21 a do pting the Pa ris Ag re e me nt: the Ada pta tio n F und may • se rve the Ag re e me nt , sub je c t to re le va nt de c isio ns b y the CMP (K yo to Pro to c o l pa rtie s’ me e ting ) a nd the CMA (Pa ris Ag re e me nt pa rtie s’ me e ting ) -> ro a dma p 2016: De c ision 1/ CMA.1 : the Ada pta tio n F und sho uld se rve the Ag re e me nt • De c isio ns to b e ta ke n b y CMP14 a nd CMA1-3 (2018) • Sho uld a ddre ss the g o ve rnanc e and institutio nal arrang e me nts, • safe g uards and o pe rating mo dality o f the Adaptatio n F und De c ision 1/ CP.22: re q ue ste d the Ad Ho c Wo rking Gro up o n the Pa ris • Ag re e me nt to a ddre ss the issue s re fe rre d to in De c isio n 1/ CMA.1 Re q ue ste d pa rtie s to sub mit the ir vie ws o n the se issue s • 2017: On-g o ing ne g o tia tio ns to wa rds “ shall se rve the Paris Ag re e me nt ”

Ada pta tion F und is a lr e a dy se r ving the g oa ls of the Pa r is Ag r e e me nt  Ne e d for public and gr ant c e s fo r base d r e sour a da pta tio n, a s we ll a s the impo rta nc e o f suppo rt a nd o f ta king into a c c o unt the ne e ds o f de ve lo ping c o untrie s (Art. 7)

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