Adaptation Fund: Helping Countries Adapt to Climate Change through - PowerPoint PPT Presentation

Adaptation Fund: Helping Countries Adapt to Climate Change through a Range of Flexible Finance Modalities Washington, D.C., 1 December 2016

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 in the la rg e r a da pta tio n fina nc e la ndsc a pe

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 in the la rg e r a da pta tio n fina nc e la ndsc a pe

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  Dire c t a c 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

T he Adaptation F und is house d within the GE F he Boa rd: c o nsists o f re pre se nta tive s o f g o ve rnme nts • T • Ha s le g a l c a pa c ity in Ge rma ny • Me e ts in Bo nn o r b a c k-to -b a c k with UNF CCC COP • Se c re ta ria t: GE F o n a n inte rim b a sis • T e a m o f c a . 10 de dic a te d full-time pe rso ns • Cro ss-suppo rt fro m va rio us a re a s o f the GE F ruste e : the Wo rld Ba nk o n a n inte rim b a sis • T

E xpe r ie nc e on funding Climate Adaptation Sinc e inc e ption, the F und has mobilize d ove r half a billion dollar s in r e sour c e s. US$ 197 million c ame fr om CE R pr oc e e ds and US$ 345 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$ 357.5 million in 63 c ountr ie s, of whic h 23 ar e L DCs and 14 SIDS. T he Adaptation F und c ur r e ntly funds 55 c onc r e te , loc alize d adaptation and r e silie nc e pr oje c ts in 48 vulne r able c ountr ie s with 3.7 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$ 357.5 million for 63 c ountrie s 55 c onc r e te pr oje c ts 35 imple me nte d • b y MI E s 2 imple me nte d • b y RI E s 18 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$ 35.3 M F o r NI E s/ RI E s: • US$ 84.6 M Re g io na l pilo t: • US$ 29.6 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$ 5.6 M CE R inc ome US$ 196.6 M Contr ibutions US$ 344.8 M F undr aising pr ogr e ss / tar ge 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$ 81.0 M / US$ 80 M Ac tive pipe line of pr oje c ts: US$ 233.5 M (a s o n 10 No ve mb e r 2016)

Dir e c t Ac c e ss is a gr oundbr e aking modality that give s national e ntitie s full c ontr ol ove r imple me ntation  Allo ws de ve lo ping c o untrie s to a c c e ss a da pta tion fina nc e dire c tly witho ut inte rme dia rie s.  Puts into pra c tic e princ iple s o f Pa ris De c la ra tio n o n Aid E ffe c tive ne ss : Owne rship • Ha rmoniza tion • Alig nme nt • Mutua l a c c ounta bility • Re sults •  Pre pa re s c o untrie s fo r a c c e ssing o the r funds dire c tly (inc luding Gre e n Clima te F und). Upda te d po lic ie s: E nviro nme nta l a nd So c ia l Po lic y (2013) Ge nde r Po lic y (2016)

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 in the la rg e r a da pta tio n fina nc e la ndsc a pe

Stre a mline d a c c re dita tion proc e ss (sma lle r e ntitie s)  Appro ve d in April 2015  I n so me c o untrie s, ma y b e diffic ult to find 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  Stre a mline d pro c e ss:  Sa me a c c re dita tio n sta nda rds  F le xib ility in me a ns o f ve rific a tio n  Re duc e d time , e ffo rt  Co nditio na lity tha t c a n b e re vo ke d

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 Ma y 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

Pilot Prog ra mme for Re g iona l Ac tivitie s  Up to 4 re g io na l pro je c ts/ pro g ra mme s  T o ta 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$ 100 millio n  11 pre -/ c o nc e pts e ndo rse d  Oc tobe r 2016: c all e xte nde d be yond pilot

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 in the la rg e r a da pta tion fina nc e la ndsc a pe

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

Adaptation F und and the Gr e e n Climate F und CMP10 (L ima 2014) re q ue ste d the AF Bo a rd to c o nside r o ptio ns fo r de ve lo ping • o pe ra tio na l linka g e s b e twe e n the AF a nd b o die s unde r the Co nve ntio n (suc h a s the GCF ) I n 2015 the Bo a rd c o nside re d ma tte rs re la te d to c o mple me nta rity, inc luding • e sta b lishing a n o pe ra tio na l linka g e b e twe e n the AF a nd the GCF fo r c ha nne lling re so urc e s fo r a da pta tio n a nd ide ntifie d two o ptio ns: (a ) se e king a c c re dita tio n a s fina nc ia l inte rme dia ry with the GCF ; o r • (b ) e nte ring into a n MOU o r a d ho c a g re e me nt with the GCF . • T he AF Bo a rd re q ue ste d the se c re ta ria t to disc uss with the GCF se c re ta ria t c o nc re te • a c tivitie s to initia te c o lla b o ra tio n, suc h a s: re a dine ss suppo rt, inc luding b y jo int a c tivitie s; • re sults b a se d ma na g e me nt; a c c re dita tio n; a nd pro je c t/ pro g ra mme ide ntific a tio n. • T he AF Bo a rd re q ue ste d its Cha ir a nd Vic e -Cha ir to c a rry o ut c o nsulta tio ns with the Co - • Cha irs o f the GCF Bo a rd