Voluntary Contribution to the Adaptation Fund (AF)
The Adaptation Fund (AF) has a proven track record for implementing innovative adaptation projects for those people most in need. AF projects increase overall resilience of vulnerable poor globally and in SDC partner countries and decrease the potential risk, that impacts of climate change could diminish achieved development outcomes across sectors. With this voluntary contribution and due to its recognized climate adaptation expertise, Switzerland ensures its representation in the governing body of the AF and increases its convening power.
Climate change and environment
- World Bank - International Bank for Reconstruction and Development
The world faces today unprecedented weather and climate risks. Existing global estimates of the costs of adaptation in developing countries range between USD 70 billion and USD100 billion a year globally by 2050 (AR5 IPCC).
The Adaptation Fund (AF) is a broadly accepted international funding instrument under the UN Framework Convention on Climate Change (UNFCCC) which enjoys exceptionally strong support among developing countries and has a proven track record for implementing innovative and effective adaptation projects benefitting those people most in need.
The AF became operational in 2010. Over the past decade, the AF adopted innovative financing approaches, and played a key role in building the national capacities of some of the world’s most vulnerable countries. Moreover, the fund plays globally an essential role in generating and sharing vital knowledge to protect the wellbeing of the most vulnerable people.
Currently, the AF is legally in a transitional period: The legal anchorage of the fund is being transferred under UNFCCC from the Kyoto Protocol to the Paris Agreement. This has several implications, most importantly related to the source of financing and the governing body of the fund.
Switzerland, through SDC/GPCCE, has co-governed and successfully influenced AF operations since its inception: Switzerland has had a seat in the governing board of the AF until to date. In the future, the board membership might be linked to voluntary contributions to the fund.
|Objectives||The overall goal of the Adaptation Fund is to assist developing countries that are particularly vulnerable to the adverse effects of climate change in meeting the costs of concrete and innovative adaptation projects and programmes in order to implement climate-resilience measures for those people most in need.|
Direct: Developing countries that are particularly vulnerable to the adverse effects of climate change.
End Target Group: Special attention is given to the most vulnerable men and women in communities within these countries
× Action: Provide international finance to help developing countries undertake concrete adaptation projects and programmes consistent with their development needs, goals and strategies.
× Innovation: Accelerate, encourage and enable innovation for an effective, long-term global response to climate change and promoting economic growth and sustainable development.
× Learning and Sharing: Strengthen cooperation among Parties to the UNFCCC on enhancing action on adaptation.
Switzerland/SDC’s objective of the planned phase
Ensure that Swiss interests are advocated for in the governing body of the AF and under UNFCCC during AF’s transitional period and reflected in relevant policy frameworks. Most importantly, Switzerland advocates for innovative sources of funding to be a key source of funding beyond 2020.
As per mid-term Strategy 2018-22 (no numerical outputs envisaged since depending on availability of funding):
× Climate change impacts and vulnerability assessed with a view to formulating nationally determined priority actions
× Adaptation actions implemented
× National adaptation plans formulated and implemented
× Adaptation plans, programmes and policies monitored, evaluated and learned from
× Information, good practices, experiences and lessons learned shared
× Institutional arrangements to support the synthesis of relevant information and knowledge strengthened and technical support/guidance provided to Parties
× Scientific knowledge to inform climate services and decision-making strengthened
× Developing country Parties assisted to identify effective adaptation practices, needs, priorities, and they are receiving support (including through Direct Access) for adaptation actions and efforts so as to encourage good practices
× The effectiveness and durability of adaptation actions are improved
X Climate change measures mainstreamed in national policies, strategies and planning
Results from previous phases:
Until today, the AF has dedicated approximately USD 745 Mio of funding for 100+ adaptation projects, being implemented in more than 100 countries, including 28 Least Developed Countries (LDCs) and 18 Small Island Developing States (SIDS). In addition, more than USD 15 Mio have been invested into capacity building and knowledge sharing activities in these countries. Until to date, the AF has benefitted 8.7 Mio direct and 17.3 Mio indirect beneficiaries in the most vulnerable communities in developing countries.
The AF was the first international climate fund, which provided a direct access modality to beneficiary countries in order (i) to enhance country ownership and (ii) to respond to their criticism, that international climate finance is mainly channeled through multilateral institutions. Moreover, the direct access modality lowers transaction costs. Based on the pilot experience of the AF other climate funds, most notably the Green Climate Fund, have also adopted a direct access modality.
AF projects and the institutional arrangements have in selected cases paved the way for more programmatic funding through the Green Climate Fund (GCF), based on national adaptation strategies and action plans.
Capacity building and readiness support for countries accessing the fund through the direct access modality had a lasting effect on countries.
|Directorate/federal office responsible||
International Financial Institution (IFI)
|Coordination with other projects and actors||Green Climate Fund (GCF), Global Environmental Facility (GEF); UNFCCC negotiations lead by BAFU; SDC and SECO bilateral regional/country programmes.|
|Budget||Current phase Swiss budget CHF 10’000’000 Swiss disbursement to date CHF 0|