UNFCCC Adaptation Committee
Adaptation Finance Bulletin

 Issue No.2 
(January 2018)
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The UNFCCC Adaptation Finance Bulletin provides the latest news and updates to Parties and other interested stakeholders on adaptation finance-related information from funds, UNFCCC bodies and negotiations, as well as an overview of relevant upcoming events.

News from the Gre en Climate Fund (GCF ) GCF-News 

Funding:
  • As of November 2017, total cumulative pledges to the GCF amounted to USD 10.3 billion;.
     
  • To date, the GCF Board has approved USD 2.65 billion in funding for 54 projects that involve 73 countries, accounting for co-financing at USD 9.16 billion with other contributors. Of the approved projects 40% address mitigation, 31% target adaptation and 29% aim at cross-cutting objectives. The figures below show the distribution of projects by regions and countries, clearly indicating a focus on supporting the most vulnerable countries.
                          Fig. 1. Distribution of GCF projects per region and country

                         

Update of procedures:
  • A Simplified Approval Process (SAP) was adopted at the 18th GCF board meeting in September. Under the SAP, the GCF promotes accessibility to small budget (up to USD 10 million) and minimal risk projects through simplified procedures for applicant countries. An information brief and concept note template are available. Further guidelines are under preparation.
Information & Communication:

  • The GCF continues to provide financial support for the formulation of National Adaptation Plans (NAPs) and/or other adaptation planning processes. Through its Readiness Programme, developing countries are eligible to receive a one-time allocation of up to USD 3 million to support country-driven adaptation activities. To date, 47 proposals have been submitted, with six approved (Antigua and Barbuda, Colombia, Liberia, Nepal, Pakistan and Uruguay) and an additional five proposals endorsed pending final conditions (Argentina, Bangladesh, Democratic Republic of Congo, Dominican Republic and Niger).
     
  • The ecosystem-based adaptation project in Gambia received its first disbursement of USD 6 million as a part of a USD 20.5 million GCF grant, approved by the Fund's Board in June 2016. This joint project with UN Environment is aiming at transforming degraded forests and agricultural landscapes into climate resilient ecosystems.
  • The brochure on the GCF Private Sector Facility was published in November 2017 to reach out to potential co-investors from the private sector to mobilize private finance for climate resilient projects.
                                                  
                                                      Brochure                               Toolkit 
GEF (SCCF/LCDF) - Update  GEF-update  

 

  • At COP 23 in Bonn, Germany, new pledges amounting to a total of over USD 93 million to the Least Developed Countries Fund (LDCF) were made as follows:

    • Belgium: EUR 7 million (USD 8.6 million);
    • Belgium: Walloon Region: EUR 3.25 million (USD 4 million); 
    • Germany: EUR 50 million (USD 61 million);
    • Sweden: SEK 185 million (USD 23 million).
  • In addition, Switzerland pledged CHF 1.89 million (USD 2 million) to the LDCF and CHF 500,000 (USD 520,000) to the Special Climate Change Fund (SCCF) during the 23rd LDCF/SCCF Council meeting in Washington DC on 30 November 2017.
     
  • As at 30 November 2017, total cumulative pledges to the LDCF amounted to USD 1.33 billion, of which 90% had been paid. Available resources in the LDCF Trust Fund amounted to USD 53.4 million as at November 30, 2017. Cumulative pledges to the SCCF amounted to USD 352.3 million, of which 98% had been paid.
     
  • The GEF Secretariat is in the process of developing new Programming Directions and Policy for Climate Change Adaptation for the period of 1 July 2018 to 30 June 2022. The new Programming Strategy will elaborate programs to be supported by the LDCF and the Special Climate Change Fund (SCCF), and policy improvements to facilitate the LDCF/SCCF access and programming. The strategy development will take place from January to May 2018, and will be concluded at the 24th LDCF/SCCF Council to be held in June 2018. The GEF Secretariat is planning to organize consultations during the strategy development process.
Adaptation Fund (AF) - Update AF-Update  

AF 10th Anniversary at COP23
"Adaptation Fund: 10 Years of Innovation, Action & Learning".
  
  
  • The AF marked its 10th anniversary since becoming operational in 2007. Achievements with partners and stakeholders through various types of field projects and the Fund's pioneering Direct Access modality were recognized and celebrated throughout the year and especially during COP23.


 

 

  • The lessons learned by AF projects support further progress towards a resilient and adaptive world. Find success stories on the anniversary special page of the Fund here.

Record Resource Mobilization at COP23
  • During COP23, a record single-year total of USD 93 million of new commitments were pledged by Germany, Sweden, Italy, the Walloon Region of Belgium and first-time AF contributor Ireland. Their contributions surpassed the USD 80 million mobilization goal of the AF for 2017. The AF received an additional pledge from the Brussels-Capital Region of Belgium in December, raising its new pledges for the year to USD 95 million.
     
  • As of January 8, 2018, total contributions to the AF, including sales from Certified Emission Reduction (CER) proceeds, amounted to USD 700.14 million.
     
Projects/programmes Funding
The funding approvals by the Adaptation Fund Board (AFB) during 2017 reached nearly USD 105 million with new projects approved intersessionally and at the 30th meeting in October, including single-country projects for Fiji, Guinea-Bissau, Namibia, Senegal and Solomon Islands, and two regional projects for Burundi, Kenya, Rwanda, Tanzania, and Uganda, and Colombia and Ecuador, respectively. The AF has allocated USD 462 million toward 70 concrete adaptation projects in vulnerable communities of developing countries to date.

Accreditation
The Board accredited new National Implementing Entities (NIEs) in Tanzania and Niger, raising its total to 27 NIEs with the capacity to design projects and access funds directly under AF's pioneering Direct Access modality. The accreditation of Banque Agricole du Niger resulted from the Fund's south-south cooperation grant programme, which involves peer-to-peer support from accredited NIEs to those seeking accreditation. The Banque Agricole du Niger received support from the Fund's first NIE, the Centre de Suivi Ecologique (CSE) of Senegal which had shared experiences and lessons with Niger throughout the accreditation process. The Board also reaccredited three previously accredited entities.

AFB30 Key Decisions
  • At its 30th meeting (October 2017), the Board adopted the following decisions (further details available in document AFB/B.30/11):
     
    • To further improve steps to enhance complementarity with the GCF, including options for fund-to-fund arrangements and accreditation;
       
    • Adoption of the Medium-Term Strategy for the next five years, which seeks:
       
      • To strengthen support to country-driven projects under three strategic foci: 1) action, 2) innovation and 3) learning and sharing to reach and empower developing countries, especially the most vulnerable communities through concrete actions on the ground and with long-term institutional and technical capacity building, as well as sharing its innovations and experiences toward scaling up its work;
         
      • To reach a new financial goal of USD 100 million per year from 2018 to 2020, which may be adjusted to align with the amount of money approved for new projects each year and to maintain pace with rising demand.

Readiness
  • Intersessionally between the 30th and 31st meetings, the AFB approved four new climate finance readiness grants. The Department of Environment of Antigua and Barbuda received grants to support the governments of Dominica and Maldives towards having their national agencies accredited to access funds directly from the Adaptation Fund. Similarly, CSE from Senegal received a grant to support the government of Côte d'Ivoire, and the Agricultural Development Agency of Morocco received a grant to improve management of environmental and social risk and gender considerations.      
  • The AFB Secretariat organized an annual dialogue for NIEs of the AF in Puntarenas, Costa Rica, in collaboration with the Costa Rican NIE, Fundecooperación. Altogether 22 NIEs, as well as representatives of the Climate Investment Funds (CIF), the GEF and the GCF participated in this first NIE meeting outside of the AFB Secretariat headquarters. The Secretariat also organized, together with the Caribbean Development Bank, in Barbados a climate finance readiness workshop for the Caribbean Region.
Latest from the Adaptation Committe (AC)AC
  
  • Twelfth meeting of the AC -  Bonn, Germany.
    The AC convened its 12th meeting from 19-22 September 2017. In collaboration with the Least Developed Countries Expert Group (LEG), the Standing Committee on Finance (SCF) and the GCF, it developed draft ecommendations informed by experiences of countries in accessing the readiness programme of the GCF for adaptation activities. Welcoming current efforts made by the GCF, the AC recommended the GCF to enhance countries' access to funds through communicating to stakeholders in reachable and appropriate formats and through speeding up the approval and disbursement processes. The AC will follow up on these recommendations during a workshop on GCF access taking place at the margins of the NAP Expo 2018.
  • The AC also agreed to convene a meeting in 2018 to foster greater contribution of the private sector to the process to formulate and implement NAPs. As part of the preparation, the AC agreed to develop a concept note to further define the focus of the 2018 workshop and to also to explore possibilities for collaboration with a wide range of stakeholders.
     
  • COP 21 in 2015 had requested the AC and the LEG to develop methodologies, and make recommendations for taking the necessary steps to facilitate the mobilization of support, including financial support, for adaptation in developing countries. The joint draft recommendations called for enhancing and strengthening enabling environments and are currently being considered by Parties as part of their deliberations on the Paris Agreement Work Programme.
Latest from the LEGLEG
  • The LEG, at its 32nd meeting in August 2017, took note of the challenges and subsequent slow progress of LDCs in accessing funding from the GCF for the formulation of NAPs.
     
  • To address the needs and challenges by the LDCs, the LEG and the GCF jointly agreed to work on developing the following products to support countries:
     
    • A frequently asked questions publication addressing the emerging needs and challenges faced by the countries for in accessing funding from the GCF;
       
    • Indicative sets of activities, reflecting different national circumstances, for inclusion in proposals for accessing GCF funding for the formulation of NAPs.
       
  • The LEG and the GCF secretariat also agreed to consider the following:
     
    • Supporting the assessment by the SBI of progress made in the process to formulate and implement NAPs;
       
    • Providing technical guidance and advice on needs related to adaptation that may arise from the Paris Agreement and COP 21 decisions;
       
    • Updating the LDC work programme.
Latest from the SCFSCF
  • The SCF convened its 16th meeting from 18-21 September 2017. As part of its work on the sixth review of the Financial Mechanism, the SCF highlighted the following progress being made on adaptation finance:
     
    • Under the GCF 140 million people are projected to benefit from reduced vulnerability and/or increased resilience through 55 adaptation and cross-cutting projects in its pipeline;
       
    • For the GEF, from its inception until 30 June 2017, the LDCF approved USD 1.1 billion for projects, programs and enabling activities, including the preparation and implementation of NAPs and NAPAs, and the SCCF provided USD 287.9 million for adaptation projects;
       
    • The active portfolio under the LDCF is expected to reach 4.4 million beneficiaries and train over 34,000 people on adaptation, while also bringing over 1.1 million hectares of land under resilient management;
       
    • The LDCF and SCCF have both contributed to the adoption of national policies, plans and frameworks on adaptation. The 2017 evaluation of the SCCF found that the Fund had delivered significant results in terms of catalytic effect, generation of public goods and demonstration of technologies.
  •  The 2017 SCF forum on "Mobilizing finance for climate-resilient infrastructure" was held in September, in Morocco with a wide range of participants from different regions, representatives from governments, multilateral development banks (MDBs), the operating entities of the Financial Mechanism, infrastructure project developers, the private sector and industry associations as well as civil society organizations. It examined climate-resilient infrastructure in the broader global infrastructure landscape, the current trends, gaps in financing and ways to close the financing gaps in the light of international best practices. Further details of the forum discussions and presentations, including a short video on the 2017 SCF Forum capturing its highlights and key findings, are available here. The outcome of the discussion at the event was submitted as  part of the 2017 SCF report to COP23.
     
"Mobilizing Finance for Climate-Resilient Infrastructure"
 
 
2017 Forum of the Standing Committee on Finance.
 
Negotiation highlights (COP 23, SB 47)Negotiations
COP23, Opening of High-Level Segment
Delegates during plenary at COP23

  • The twenty-third session of the Conference of the Parties (COP23) and the forty-seventh sessions of the subsidiary bodies (SB47) took place under the Fijian presidency in Bonn, Germany from 7 to 16 November and resulted in significant developments for adaptation finance, including the adoption of decisions which urge Parties and relevant stakeholders to accelerate scaling-up of adaptation finance, enhance the linkage among stakeholders and improve existing arrangement of support mechanisms. While the outcomes of COP23 cover a wide range of issues, including the report from the GEF and the review of the financial mechanism, the below section only highlights some key elements on adaptation finance in several decisions and conclusions adopted by Parties.
Pre-2020 implementation and ambition
  • The COP decided to convene a stocktake on pre-2020 implementation and ambition at COP24 in November 2019. The stocktake will consider relevant inputs from the subsidiary and constituted bodies and operating entities of the Financial Mechanism in the format of the 2016 facilitative dialogue.
Establishment of a gender action plan
  • The COP noted that gender-responsive climate policy continues to require further strengthening in all activities concerning adaptation, mitigation and related means of implementation (finance, technology development and transfer and capacity-building) as well as decision-making on the implementation of climate policies. The Gender Action Plan adopted as an annex to the decision invites the SCF to host a dialogue on the implementation of its commitment to integrate gender considerations into its work, emphasizing the relevance of gender-responsive access to finance.
Long-term climate finance
  • The COP urged developed country Parties to continue their efforts to channel a substantial share of public climate funds to adaptation activities and to strive to achieve a greater balance between finance for mitigation and finance for adaptation, recognizing the importance of adaptation finance and the need for public and grant-based resources for adaptation.
     
  • The COP also took note of the summary report on the 2017 in-session workshop on long-term climate finance. The report underlines that adaptation finance was identified as key to increase efforts to communicate opportunities for private finance. The summary report of the workshop is available here.
     
  • The COP also decided that the next in-session workshop on long-term climate finance, to be held in 2018, will focus on experiences and lessons learned from needs identified in country-driven processes, roles of policies and enabling environments for mitigation and adaptation finance, and facilitating enhanced access.
Report to and guidance to the GEF
  • The COP, noting the importance of the existing allocation for climate change, requested the GEF to further consider the needs and priorities of developing countries in the allocation for the climate change focal area in its seventh replenishment period.
     
  • The COP requested the GEF to continue implementing, in its seventh replenishment period, its established policies for grants and concessional funding, in support of developing country Parties, in line with the provisions of the Convention, relevant decisions of the COP and the Instrument for the Establishment of the Restructured GEF.
     
  • The COP also welcomed the operationalization of the Capacity-building Initiative for Transparency (CBIT) and project approved during the reporting period, and requested the GEF to provide adequate support to assist developing country Parties, in line with decision 1/CP.21 paragraph 86.
Report of and guidance to the GCF 
  • The COP appreciated the significant scaling-up of the operations of the GCF, including the availability of additional financial resources for the Readiness and Preparatory Support Programme to formulate NAPs and/or other national adaptation planning processes.

    However, the COP noted with concern the challenges faced by developing country Parties in accessing financial resources, especially in relation to funding for adaptation. The GCF Board is encouraged to continue improving the process to review and approve readiness and preparatory support requests, including requests for support to prepare NAPs, including the timely disbursement for approved programmes.

Report of the AF
  • CMP 13 decided that the AF shall serve the Paris Agreement subject to and consistent with decisions to be taken at CMA1.3 (December 2018), in line with decision 1/CMA.1, paragraph 11. It also noted progress made by APA in undertaking preparatory work to address governance, institutional arrangements, safeguards and operating modalities. The CMP further noted that progress on preparatory work had been made, and also recognized that the Fund should continue to contribute to an enhanced, efficient and coherent climate finance architecture.
     
  • The CMP encouraged the scaling-up of financial resources, including the provision of voluntary support, that is additional to the share of proceeds levied on CERs, in order to support and strengthen the resource mobilization efforts of the AFB with a view to strengthening the AF. The AF was also encouraged in line with its existing mandate, to consider linkages with other funds, and to report back to CMP14 in 2018. (For details, please refer to the decision and the report).
Third review of the AF 
  • The AF Board was encouraged by the CMP to consider options for improving the efficiency with regard to the operation of the AF, to engage continuously with subnational actors and the private sector through, inter alia microfinance schemes, weather-based insurance arrangements, involvement with local industry groups and farmers in adaptation projects, and public-private partnerships. Consideration of voluntary tracking of climate finance mobilized, where appropriate and efforts to enhance complementarity and coherence with other funds were also encouraged by the CMP
     
  • As for possible next steps, the CMP requested the AF Board:
  • To consider lessons learned from its engagement with private sector at the local level, including in the decision-making processes of the AF and in communications with donors;
     
  • To monitor and assess project approval time under the Readiness Programme identifying any linkages to the AF's environmental and social policy, and to take measures to reduce the time, as necessary, while continuing to implement its environmental and social safeguards and gender policy;
     
  • To continue to provide information on project approval time;
     
  • To continue monitoring the impacts and results of the AF, including using local and sector-specific metrics; and
     
  • To report on progress to the CMP. (The decision is available here)
Report of the AC (SB 47 Conclusion)
  • At SB 47, the recommendations proposed by the AC and LEG in response to the Paris outcome were discussed and appreciated by Parties. Parties agreed to continue their consideration of the recommendations at SB 48 in April/May 2018 and to forward their conclusions to COP 24. The conclusion is available here.
Matters relating to the LDCs (SBI 47 Conclusion)
  • SBI47 expressed its appreciation to the LEG for including an item on access to the GCF Readiness and Preparatory Support Programme on the agendas for regional training workshops on NAPs and for the NAP Expo and for the successful collaboration with the GCF secretariat.
     
  • The SBI welcomed the work of the LEG in providing technical guidance and advice on accessing funding from the GCF for the process to formulate and implement NAPs in collaboration with the GCF secretariat.
Upcoming events, January - July 2018Events

Dates

Event
More information
5 - 9 February

UNFCCC
:
  33rd LEG Expert meeting / LEG expert meeting on NAP assessment 

http://unfccc.int/adaptation/groups_committees/ldc_expert_group/items/4727.php
27 February - 1 March
GCF:  19th Meeting of the Board, Songdo, Republic of Kore 

27 Feb - 2 March
UNFCCC:  13th Meeting of the Adaptation Committee, Bonn, Germany
http://unfccc.int/adaptation/groups_committees/adaptation_committee/items/10531.php
March
UNFCCC17th Meeting of the Standing Committee on Finance, Bonn, Germany

Date to be confirmed

20 March
Adaptation Fund:  31th Board Meeting, Bonn, Germany
https://www.adaptation-fund.org/news-and-events/events-calendar/
4 - 6 April
UNFCCC:  NAP Expo

19 April
Adaptation Fund:  Readiness Webinar #6
https://www.adaptation-fund.org/news-and-events/events-calendar/
30 April - 10 May
UNFCCC:  SB 48

18 - 22 June
Adaptation Futures 2018
June/July
GCF:  20th Meeting of the Board
Date to be confirmed
July
UNFCCC:  18th Meeting of the Standing Committee on Finance, Bonn, Germany

Date to be confirmed