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Adaptation Fund

Adaptation Fund - Fund established in January 2002 (COP7, Marrakech) to help developing countries meet the cost of adaptation to climate change. The Fund is financed mainly with a share of proceeds (SOP) from clean development mechanism (CDM) project activities, see Adaptation Levy. At COP-14 in Poznan, the Parties agreed that the GEF (Global Environment Facility) acts as AF Secretariat and the World Bank as ”interim” trustee in charge of CER sales. The Poznan decision gives the Adaptation Fund Board permanent legal basis as an independent legal body, enabling it to enter into contracts and directly take project proposals, without having to go through implementing agencies, and to start disbursing the funds. The decision means that adaptation money can begin to flow at some point in 2009. The Fund is financed with 2% of the Certified Emission Reduction (CERs) issued for projects of the Clean Development Mechanism (CDM) and with funds from other sources. (Source: www.adaptation-fund.org)

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