The Adaptation Fund (AF) is a mechanism created through the Marrakesh Accords but funded through the Clean Development Mechanisms (CDMs) described in the Kyoto Protocol. The intention of the COP in the creation of the AF is the facilitation and funding of adaptation projects in developing countries to strengthen their resistance to climate change. Two percent of the funds invested in CDMs go to the Adaptation Fund where the money can then be divvied out to developing countries when they send in proposals. But the Kyoto Protocol was only intended to last ten years. Enacted in 2010, the Kyoto Protocol will reach its end in 2020 and with the end of the Kyoto Protocol comes the end of CDMs, and thus the end of the funding for the Adaptation Fund.
At COP23 there have been significant concerns about the future of the Adaptation Fund, where future funding will come from, and if that means the Fund will operate in the same manner as before. But these issues, as most do, draw a dividing line between developing countries and developed countries. In the most recent review of the Adaptation Fund in COP23, developing countries continued to emphasize the critical nature of the Fund in providing critical financial assistance as these countries attempt to adapt to the increasing effects of climate change. Many developing countries have emphasized the need for the increase in the scope of the Adaptation Fund, finding the review of the Adaptation Fund Board too narrow and limiting the abilities of these countries to acquire necessary funding. Developing countries also emphasized the need for certain aspects of the Fund that have caused them concern. This includes predictability, adequacy, and consistency. In particular, the Least Developed Countries negotiating group advocated for a further integration of the Adaptation Fund into the Paris Agreement in order to facilitate the continuance of the Fund and the assistance it provides to the LDCs.
Developed countries, on the other hand, had little opinions on the continuation of the Adaptation Fund. In the Marrakesh Accords, the purpose of the Fund was intended to assist in developing countries on their climate change resilience initiatives. No benefit was gleaned by the developed countries in the implementation of this Fund. And they will glean no benefit from the continuance of this Fund under the Paris Agreement. But there was no equal assessment in how to address the Adaptation Fund from the perspectives of the developed countries. Some countries enjoyed the small-scale implementation techniques that function well through the Adaptation Fund. Other countries advocated for the continuous improvement of the Adaptation Fund to reinforce the constantly changing needs of developing countries. Overall, developed nations appeared to be ambivalent towards the Adaptation Fund and its future; striving forward to complete the agenda item with as little fanfare as possible.
The future could be bright for the Adaptation Fund. It has the ability to further the needs of developing countries to reduce the damage sustained in the ever-increasing extreme weather and natural disasters the world is facing. But if actions aren’t taken in COP23 and future COPs then when the Kyoto Protocol ends in 2020 those funds will be out of view for the vulnerable countries that need it.