Transcript Summary of submissions on the Adaptation Fund Workshop on the Adaptation Fund Edmonton May 3-5, 2006

Summary of submissions on the
Adaptation Fund
Workshop on the Adaptation Fund
Edmonton
May 3-5, 2006
Relevant mandates
 28/CMP.1 & 10/CP.7: Establishment of the
Adaptation Fund and initial guidance
 Article 12.8 of KP, 3/CMP.1 & 17/CP.7: Share
of proceeds of CERs to assist adaptation (2%)
 5/CP.7, para 8: Eligible activities
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Parties’ submissions |
Management of the Adaptation Fund
Institution to manage the Fund
Membership of the governing body
Institutional criteria and principles
Relation of the governing body with the
COP/MOP
 Institutional principles and criteria to be
followed by an institution managing the
Adaptation Fund
 Sources of funding for the Adaptation Fund
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Parties’ submissions |Policies, programme priorities &
eligibility criteria
 Eligibility criteria
 Operational principles
 Principles and modalities for disbursement of
funding
 Criteria for prioritizing project activities
 Complementarities with other funding
activities
 Additional priority areas
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Management of the Adaptation Fund
Options for institutional arrangements:
 GEF
 GEF provided that some principles and criteria
can be fulfilled
 Alternative institutional arrangements:
 Frameworks such as Multilateral fund of Montreal
Protocol
 Other UN agencies
 New institution under the COP/MOP
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Management of the Adaptation Fund
Options for membership:
 Balanced representation from Annex I and non
Annex I Parties
 Majority of Non Annex I Parties
Proposals on relationship with the COP/MOP:
 AF to be subject to the authority of the COP/MOP
 Decisions on how the funds are disbursed to be
made by the COP/MOP and entrusted entity to be
bound strictly by the guidance of the COP/MOP
 Entrusted Entity to regularly report on
implementation of guidance
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Management of the Adaptation Fund
List of institutional principles and criteria,such as:
 Transparency
 Accountability
 Financial management
 Flexibility
 Expeditious operation
 Separation and independence from the management
 Procedural arrangements and decision-making process of
existing funds under the Convention and the Kyoto Protocol
 Low transaction costs, independent monitoring and evaluation
function
 Independent reviews at regular intervals, consistency and
synergy with activities in related climate change areas
 Established knowledge and experience of adaptation activities
and on how to manage a fund
 Responsiveness to the needs and views of developing countries
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Management of the Adaptation Fund
Proposals on sources of funding for the
Adaptation Fund:
 Main source of funding for the Adaptation
Fund is the share of proceeds from CDM
project activities
 Consider alternative and innovative sources of
funding, including:
 Contributions from the private sector at national and
local levels,
 Existing development assistance,
 Other bilateral and multilateral sources.
 The trustee operating the fund should
establish one account or trust fund to manage
the fund
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Eligibility criteria |Mandates
Article 12.8 of KP:
 SOP is to be used to assist developing country Parties
that are particularly vulnerable to the adverse effects of
climate change to meet the costs of adaptation
Decision 28/CMP.1:
 Finance concrete adaptation projects and programmes
in developing country Parties that are Parties to the
Protocol.
 Countries particularly vulnerable to the adverse effects
of climate change are: “low-lying and other small island
countries, countries with low-lying coastal, arid and
semi-arid areas or areas liable to floods, drought and
desertification, and developing countries with fragile
mountainous ecosystems”.
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Eligibility criteria |Options
 Small island developing States;
 Least developed country Parties;
 Developing country Parties with projected
higher risks in the near future, in particular
those which do not already have a specific
fund of their own;
 Developing country Parties and regions where
available information indicates that the
impacts of climate change are likely to be
severe;
 All developing country Parties to the Kyoto
Protocol
 Developing countries and eligible economies in
transition.
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Operational principles
|Mandate
Decision 28/CMP.1: Adaptation Fund to be
guided by:
 A country-driven approach
 Sound financial management and
transparency
 Separation from other funding sources
 A learning-by-doing approach.
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Operational principles
|Disbursement of funding options
 Not be subject to the funding conditionality and criteria
and lengthy project preparation procedures of the GEF:
 Use expedited processing system, as followed for the
medium-sized projects of the GEF;
 Incorporate year round submission of proposals;
 Provide authority for the IAs to commit the funds for the
project following its own approval procedures
 Fund not to be linked with or managed under RAF
 No threshold limits for individual countries to access funds
 Avoid co-financing requirements and the use of the
incremental cost concept
 Processes and procedures of the GEF could be used for
the Adaptation Fund but they could be streamlined, as
the examples of LDCF and SCCF.
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Operational principles
|Proposed additional principles
 Defining learning-by-doing approach
 A wider base of organizations to serve as
implementing agencies
 Regional organizations to play a critical role
 A time frame should be set to implement and
prepare the readiness of the developing
countries for achievements of the fund, i.e.
three years before 2012
 Consultations to be held with developing
countries on the operation of the fund outside
the COP/MOP and GEF Council setting
 Overall procedures to be flexible, simple and
clear
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Policies and programme priorities
|Mandates
Decision 28/CMP.1:
 Concrete adaptation projects and programmes
 Activities identified in decision 5/CP.7,
paragraph 8.
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Policies and programme priorities
| Criteria to prioritize
 Consider priorities under decisions 1/CP.10
(BA programme of work) and 2/CP.11 (5 year
SBSTA programme of work)
 Options on what is understood by concrete
adaptation projects and programmes:
 Concrete projects = stage III activities
 Concrete projects = stage II and III activities
 Establish a % of the fund to go for technical
assistance (15%) and use most of the funds for
“actions in the field”
 Complement the existing assessment, planning, and
capacity-building activities,
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Policies and programme priorities
| Criteria to prioritize
 Proposals on how to operationalize the country
based approach:
 Focus on sectors identified as being particularly
vulnerable in NAPAs, national communications,
national sustainable development startegies
 Identify thematic priority areas that have links with
development goals
 Give priority to sectors that are of critical importance
to human survival, and economic sustainability
 Give priority to effectiveness in addressing specific
problems, local capacity-building, technology
transfer and the promotion of indigenous
technological applications
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Policies and programme priorities
| Complementarities
 Complementarities with other funding
activities (to funding priorities and allocations
for adaptation activities under the SCCF and
the LDCF)
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Policies and programme priorities
|Proposed sectors
 Detailed activities in the areas of health, agriculture
and capacity-building for disaster management;
 Additional focal areas:
 Forestry
 Sustainable livelihoods
 Improving resilience of drinking water and sanitation
systems,
 Integration of adaptation into policy
 Process and planning frameworks for decision-making,
 Increasing public awareness,
 Insurance schemes for particularly vulnerable sectors such
as subsistence agriculture,
 Economic diversification as a subtheme of the five-year
programme of work of the on impacts, vulnerability and
adaptation to climate change.
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