Enhancing India’s Readiness to Climate Finance

Enhancing India’s readiness to access and deliver international climate finance
Annex VI – Adaptation Fund Profile
Fund Overview
The Adaptation Fund is an international
mechanism of the Kyoto Protocol that
became operational in 2009. The AF uses
grant funding to finance the full costs of
concrete adaptation programmes in
developing countries. It is funded through a
2% levy on transactions under the Clean
Development Mechanism (CDM), although
in reality it has relied heavily on grant
contributions from Annex 1 countries as
well. To date, the Adaptation Fund has
approved $211.57 million and disbursed
$69 million in 31 countries. The AF’s
activities have targeted interventions in the
water, land-use, agriculture, health,
infrastructure, and ecosystems services
focal areas. Funds have also been used to
develop early warning systems and
support capacity building for disaster-risk
reduction. In 2013 the AF was replenished
with $100 million, mostly from European
countries.
GOVERNANCE STRUCTURE
Adaptation
Accreditation
Secretariat
Trustee
Fund Board
Panel
(GEF)
(WB)
2 representatives from each of the
five United Nations regional groups
1 representative from Small Island
Developing States
1 representative from Least
Developed Country Parties
2 representatives from Annex I
Parties
2 representatives from non-Annex I
Parties
Observers
Institutional mechanism to access the Adaptation Fund
One of the Adaptation Fund’s most unique design features is that it allows for ‘direct access’ of funds by national
implementing entities from developing countries. Direct access gives greater country ownership over climate
change programme, and ensures for decentralised decision-making nearer to the level where climate change
impacts occur. Fifty percent of Adaptation Funding has been ear-marked for NIEs, although only sixteen have
been accredited to date, and only 5 have received funding. The remaining 50% of Adaptation Fund finance is
available for projects managed by Regional Implementing Entities, and Multilateral Implementing Entities.
India’s experience accessing the Adaptation Fund
The National Bank for Agriculture and Rural Development is India’s NIE for the Adaptation Fund. It is
responsible for overall project management; financial management; M&E; and for performing a supervisory role
for government departments, research institutions, NGOs, etc. that act as executing agencies on projects.
In March 2014, the Adaptation Fund Board gave initial approval for three adaptation project concepts in India, all
managed by NABARD. These funds have not yet been disbursed.
Table VI.1: Adaptation Fund project pipeline for India
Project
Climate Proofing of Watershed Development Projects in the States of Tamil Nadu and
Rajasthan
Building Adaptive Capacities of Small Inland Fishermen Community for Climate
Resilience and Livelihood Security, MP, India
Enhancing Adaptive Capacity and Increasing Resilience of Small and Marginal
Farmers in Purulia and Bankura Districts of West Bengal
Cost ( USD million)
1.227
1.738
2.534
Ref: Ricardo-AEA/R/ED59216/Final Report
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