Adaptation Fund

COP 7, by its decision 10/CP.7, established the Adaptation Fund. The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (COP/MOP), by its decision 28/CMP.1, confirmed the decision by COP 7 and adopted initial guidance for the operation of the Adaptation Fund as follows:

a) The Adaptation Fund is to finance:
(i) concrete adaptation projects and programmes in developing country Parties that are Parties to the Kyoto Protocol;
(ii) activities identified in decision 5/CP.7, paragraph 8.

b) The operation of the Adaptation Fund shall be guided by:
(i) a country-driven approach;
(ii) sound financial management and transparency;
(iii) separation from other funding sources;
(iv) a learning-by-doing approach.

The COP/MOP is to further decide on specific policies, programme priorities and eligibility criteria for the Adaptation Fund at its second session (November 2006). It will also discuss possible arrangements for managing the Fund. In order to assist the COP/MOP in taking this decision, Parties have made submissions and a workshop to promote an exchange of views was held in May 2006 in Edmonton, Alberta, Canada.

The SBI started considering this issue at its twenty-fourth session (May 2005) and agreed on a draft decision on the Adaptation Fund with a view to preparing a recommendation for the COP/MOP at its twenty-fifth meeting.

The Adaptation Fund is to be financed from a share of proceeds (2%) from certified emission reductions (CERs) from CDM project activities and from other sources of funding.