The challenge of adaptation finance is not only about how much funding is being mobilised, but also how it is used. It is crucial that available finance is used as efficiently and effectively as possible so as to reduce vulnerability and increase climate resilience. The Adaptation Fund, with over 10 years of experience in channelling adaptation finance, has a unique function in the international climate finance architecture and the global response to the impacts of climate change. With its distinct mandate, clear specialisation, and innovative features, the Adaptation Fund can play an important role in improving the quality of adaptation finance.
In this paper, we explore the Fund’s role in the future climate finance architecture, taking into account past and current debates in international climate negotiations. The paper also seeks to inform these debates, particularly discussions related to operating modalities, safeguards, and governance of the Adaptation Fund, which are to be decided at the 24th Conference of the Parties (COP 24) to the United Nations Framework Convention on Climate Change (UNFCCC) in Katowice, Poland, in December 2018. The main part of this paper corresponds to these three areas and aims to provide background information, as well as recommendations, for improving the Adaptation Fund’s operations and securing its future.
To secure a future for the Fund under the Paris Agreement and enable it to work as effectively as possible, climate negotiators need to act at the upcoming climate conference in Katowice. We hope the present publication, with concrete recommendations for decisions to be taken at COP24, will contribute to this outcome.