As its logo of a young tree symbolises, the Adaptation Fund is slowly growing and establishing itself as a "model for the future" in the international climate finance debate.
The successes and progress of the last years are indications of the quality of the work within the Adaptation Fund Board, the governance body of the Fund. Therefore the Fund has been attracting increasing attention. The accreditation of the first National Implementing Entity (NIE) "Le Centre de Suivie Écologique du Senegal" which happened during the 9th meeting of the AFB in March 2010, is a historic milestone. It marks the first concrete realisation of the direct access approach in climate financing.
Approval of the first projects during the last 10th meeting marks the beginning of the implementation phase. Success of this phase is dependent on many factors and actors, in particular within developing countries. Important is on the one hand how the AF deals with its guidelines and on the other hand how the implementing entities involve relevant stakeholders, both governmental and non-governmental, within the countries.
However, the Fund is also in a critical phase. It is confronted especially with two challenges. On the one hand it needs to fulfil expectations as "a model for the future". In order to let actions speak it needs to adopt and finance as many projects as possible while ensuring they are of high quality. It needs to increase the number of National Implementing Entities as much as possible while at the same time ensuring that the fiduciary management standards are not weakened. Only then can the AF pave the way for broad acceptance of the direct access approach in the overall climate finance debate.
Furthermore, it is confronted with the question how it will share its limited financial resources among its eligible Parties in an equitable manner. By swift financing of good projects it should send out the right signals: On the one hand towards the wealthy nations to fulfil their financial promises ie. in form of the fast start financing and to show the hesitating developing countries, that the fast delivery of funding to those countries, which show explicitly early and interest.
The existing briefing paper tries to supply the delegates from Least Developing Countries (LDC) with a clear view on the Adaptation Fund by explaining its key features and the processes how to best access the resources of the Fund.
The publication can be downloaded in Englisch and French.