More adaptation funds for vulnerable countries
‘These new funding windows for Enhanced Direct Access and Innovation are part of that and will open additional opportunities for vulnerable countries and communities to develop new approaches and tools in adaptation and accelerate more local actions on the ground that are urgently needed.’
THE ADAPTATION Fund Board recently concluded its second virtual meeting, having established new f unding windows for large innovation grants and Enhanced Direct Access to provide vulnerable countries, including from the Caribbean, with further opportunities to access needed funds to shore up their climate-change readiness.
It also gave the green light for several new grants while also technically clearing its first concrete adaptation project in the Republic of The Gambia and a small innovation grant to foster innovative technologies for improving water and food security in Antigua and Barbuda.
“The board raised its annual resourcemobilisation target to US$120 million for both 2020 and 2021, up from the previous US$90 million target of the last two years,” said a release from the entity.
“When approving the elevated target, the board emphasised addressing increased adaptation funding needs among developing countries affected by the COVID-19 pandemic and also fostering and increasing adaptation actions through the Fund’s strategic pillars of Action, Innovation, Learning, and Sharing to help meet the urgency and enormity of climate change,” it added.
Demand for the Fund continues to be high, reflecting the scale of countries’ needs. The board received record highs
in new proposals for its inter-sessional review in June 2020 and its March 2019 meeting and has an active project pipeline of about US$280 million. The board further approved a record US$188 million in new projects last year.
MORE OPPORTUNITIES
The new funding windows will offer countries additional opportunities above and beyond their regular country project funding allocations to help meet the dual challenges of climate change and COVID19, and build broader resilience against climate change, environmental, health and economic risks.
“I am very proud and pleased to see the Adaptation Fund Secretariat and Board continue to adapt and deliver to the most vulnerable communities that it serves in innovative ways, especially during these challenging times,” said Ibila Djibril, chair of the Board.
“These new funding windows will provide developing countries with additional means on top of our regular funding channels to adapt and build resilience to climate change, while fostering sustainable development,” he added.
The board’s approval of the pilot Enhanced Direct Access (EDA) funding window for national implementing entities (NIEs) will further empower entities to directly identify and fund local adaptation projects. EDA builds on the Fund’s pioneering Direct Access modality, which fosters country ownership in adaptation.
The Fund has pioneered EDA already by piloting it in several countries through locally led adaptation projects, including in South Africa, Costa Rica, the Federated States of Micronesia, and Antigua and Barbuda, and this will build on those by creating an explicit window for NIEs to submit proposals of up to US$5 million per country for EDA projects.
FUNDING INNOVATION
In approving a process for providing funding for innovation in adaptation through large grants of up to US$5 million each for the Fund’s accredited national, multilateral, and regional implementing entities, the Board expanded its available opportunities for countries through the Fund’s Innovation Facility, which is already providing small innovation grants (up to US$250,000 each). The first call for proposals for large innovation grants will make US$30 million available for them in early 2021.
Importantly, both t he EDA and innovation funding windows will not count against the Fund’s country cap, so entities will be eligible for these additional opportunities beyond countries’ regular project funding limits.
At the same time, the board decided to further define and elaborate on the Fund’s vision for innovation, including review criteria, risk appetite, focus on particularly vulnerable groups, countries and sectors, and innovation in the context of COVID-19.
A task force composed of board members representing developing and developed countries was established during the meeting to help guide the work.
“Since the Adaptation Fund began formally serving the Paris Agreement nearly two years ago, the Fund has made great strides to expand its offering of grants through its strategic pillars of Action, Innovation and Learning, to help meet the scale and urgency of climate change and contribute to building broader resilience within the context of COVID-19 as well,” said Mikko Ollikainen, manager of the Fund.
“These new funding windows for Enhanced Direct Access and Innovation are part of that and will open additional opportunities for vulnerable countries and communities to develop new approaches and tools in adaptation and accelerate more local actions on the ground that are urgently needed,” he added.