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and use of adaptation money under the UN Framework Convention on Climate Change (UNFCCC). A shared perspective of countries on these issues is important not only so that they can begin to rebuild trust but also to ensure that money is used effectively and efficiently. Funds for adaptation: an embarrassment of riches
The 2001 United Nations Climate Change Conference in Marrakesh established three funds to support adaptation activities in developing countries: the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF), under the UNFCCC, and the Adaptation Fund, under the Kyoto Protocol. The two funds under the UNFCCC are managed by the Global Environment Facility (GEF) and rely on voluntary contributions from developed countries. The GEF provides funding to eligible developing countries to meet the ‘additional’ or ‘incremental’ costs of adaptation; the baseline costs of a project or programme are borne by the recipient country, by other bilateral or multilateral donors, or both.3 As of May 2010 US$315 million had been pledged for adaptation under these two funds (US$221 million to the LDCF and US$94 million to the SCCF); of this amount, US$220 million has been allocated (US$135 million from the LDCF and US$85 million from the SCCF).4 In addition, the GEF used its Trust Fund to establish the Strategic Priority on Piloting an Operational Approach to Adaptation (SPA); it has allocated all US$50 million it had made available to it.5 In 2008 the GEF Council agreed to await the recommendations of the independent evaluation of the SPA and guidance to the GEF from the Conference of the Parties (COP) before making a decision on the future use of the Trust Fund for adaptation activities. No adaptation support is foreseen as part of the fifth replenishment cycle of the GEF (2010–2014).6 The Adaptation Fund, which became operational only in 2009, is managed by a special Adaptation Fund Board (AFB), but is also administered by the GEF. It is the first financial instrument under the UNFCCC and its Kyoto Protocol that is not based solely on voluntary contributions from developed countries. It receives a 2 per cent share of proceeds from project activities under the Clean Development Mechanism (CDM), but can also receive funds from other sources to fund concrete adaptation projects and programmes. The actual amount of money that will be available from the Adaptation Fund depends on the extent to which the CDM is used and on the price of carbon. As of July 2010 the Adaptation Fund had received US$160 million, of which US$112.5 million was generated through CDM activities. Estimates of potential resources available for the Adaptation Fund from 31 August 2010 to 31 December 2012 range from US$317 million to US$434 million.7
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