ECO would like to cast a bright light on whether there is sufficient progress in responding to the needs of the poor and vulnerable at an implementation level. We note that the Adaptation Fund is now established. It has approved funding for 27 adaptation projects with several projects more waiting to be funded. Furthermore, we see that 15 developing countries have already had their National Implementing Entities accredited and can directly access the Fund, and several more countries are in the process of accreditation.
ECO also recognises that the Adaptation Fund has become a forerunner, having recently been ranked as the top climate finance institution by Publish What You Fund: the Global Campaign for Aid Transparency. Just two weeks ago it became the first climate fund in the International Aid Transparency Initiative. It has also been an early-mover in adopting an overarching results framework. The Fund has managed to speed up the project approval process while reducing implementing entities´ fees.
ECO wonders why, with such accomplishments, the Adaptation Fund is the one multilateral fund that has received the least contributions from developed countries in recent years. And to make matters worse, the price for emission reduction certificates (the key income source of the Fund) is now below US$1, largely due to the virtual collapse of the European Emission Trading Scheme. At current CER prices and estimated issuance levels, the Adaptation Fund would receive only $4 to $8 million in additional revenue to 2020.
ECO is concerned that there has hardly been any progress in delivering the Fund’s target of $100 million by the end of 2013. There are no new pledges and funding seems to be scarce. ECO calls on Parties to send a strong signal that they are committed to addressing the needs of the vulnerable developing countries by putting additional money into the Fund swiftly.
ECO particularly would like to see countries like Japan, Norway, France, Finland, Netherlands, New Zealand, USA, Canada and others, who have not as yet contributed to the Fund, to do so immediately. Australia´s 2010 pledge has still not been deposited. ECO finds it ironic that Germany, the host of the Adaptation Fund, has only made one pledge of 10 million EUR in 2010, which is much lower than that of Spain and Sweden.