About Adaptation Fund
- The Adaptation Fund was set up in 2001 under the Kyoto Protocol.
- It seeks to finance projects and programmes in developing countries to adapt to the harmful effects of climate change.
- The Adaptation Fund is financed by a 2% levy on certified emission reduction (CERs) issued by the Clean Development Mechanism (CDM).
Types of Climate Funds
Global Environment Facility (GEF)
- It was established in 1992 during the Rio Earth Summit. It is headquartered in Washington DC, USA.
- GEF funds are available to developing countries and countries with economies in transition to meet the objectives of the international environmental conventions and agreements.
- The World Bank serves as the GEF Trustee, administering the GEF Trust Fund (contributions by donors)
Green Climate Fund:
- It was set up by the parties to the United Nations Framework Convention on Climate Change (UNFCCC) in 2010, as part of the UNFCC’s financial mechanism.
- GCF helps developing countries limit or reduce their greenhouse gas (GHG) emissions and adapt to climate change by financing low-emission, climate-resilient development.
Special Climate Change Fund (SCCF):
- It was established under the UNFCC in 2001. The Global Environment Facility operates the SCCF.
- It finances projects relating to adaptation; technology transfer and capacity building; energy, transport, industry, agriculture, forestry and waste management; and economic diversification.
Least Developed Countries Fund (LDCF):
- It was established under the UNFCC in 2001. It is administered by the Global Environment Facility.
- The LDCF aims to address the needs of the 48 LDCs which are particularly vulnerable to the adverse impacts of climate change.
About Kyoto Protocol:
- The Kyoto Protocol is an international agreement linked to the United Nations Framework Convention on Climate Change. It aimed to achieve a legally binding emissions reduction by industrialized countries.
- The Kyoto Protocol was adopted in Kyoto, Japan, in 1997 and entered into force in 2005.
- Reduction of collective Greenhouse gas (GHG) emissions by 5.2% from the 1990 level by 2012. This is known as the “first commitment period”
- Second commitment period (2013-2020) to reduce emissions by 18% was adopted by the Doha Amendment (2012)
Approach: Equity and Common but differentiated responsibilities and respective capabilities (CBDR) – Legally binding targets for 39 developed countries. No legally binding targets for developing countries.