The Unveiling of Mechanisms for the Adaptation Fund
December 17th, 2009On December 10th 2009, the Adaptation Fund Board (AFB), the team behind the Adaptation Fund (AF), in the Conference of Parties (COPs)-15 tried to address the concerns by the parties and civil society around the adaptation funding mechanisms.
AFB has made it clear that incoming funding for the Adaptation Fund would not be diverted from the Official Development Assistance (ODA) rather a legally-binding separate funding arrangement, would be created. The funding regime for the AF is something parties would be working on before the end of the COPs- 15.
The concerns of civil society on the Global Environment Fund (GEF) handling the AF have also been noticed. According to the AFB team, a separate mechanism, though under GEF, would be responsible for the disbursement of the funds and efforts would be made to make it efficient. Lessons from the Clean Development Mechanism (CDM) would also be considered.
Adaptation fund would be accessible by National Implementing Entities (NIE). NIE will be the ‘legal entities nominated by Parties that are recognized by the Board as meeting the fiduciary standards established by the Board’. Along with NIE, Multilateral Implementing Entities (MIE) will also be there. MIE can be the Multilateral Institutions and Regional Banks that meet the fiduciary standards provided by the Board. In case the party is unable to set NIE, MIE mechanism can be used to access the funds. NIE or MIE will ‘bear the full responsibility for the overall management of the projects and programs financed by the AF and will bear all financial, monitoring, and reporting responsibilities’.
Civil society feels that AF is a step in the right direction but it still has some underlying issues:
The chair of the AFB has requested for billions of dollar annually to meet the adaptation needs of the most vulnerable. World leaders in the COP-15 are working towards a decision regarding the AF. Civil society is pushing for a mechanism based on equality and human rights instead of some market system underlying the principles of give and take and something as complex as CDM.
Another concern which has come to the forefront is the role of civil society in accessing the resources from the AF. The resources would only be channelled by the MIE/NIE. Keeping in mind the mistrust which exists between governments and the civil society, this may negate the role of civil society in the adaptation process. Here we have to keep in mind that the civil society, especially in the developing world, plays a very important role in working with the communities on adaptation issues.
To meet the adaptation needs of the CC vulnerable groups, billions of dollars annually would be required. As shared by the AFB, so far they are not very sure about the criteria for the selection of projects, but this is something which is to be directed towards the most vulnerable, least developed and small island countries. Civil society fears that AF may not be able to streamline a criteria by March 2010. In March 2010, AF is looking for the first round of adaptation proposals.
I’m closely following the adaptation text and the decisions around it and hoping that by December 19th 2009, I will have something positive to report back.
Maira
Dec 16, 2009
Hopenhagen












