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Adaptation Fund and Pilot Programme for Climate Resilience (PPCR)

This is an overview of two more organisations that govern adaptation funds.
Green trees and mountains on an island
© University of Groningen

In this step we will discuss the Adaptation Fund and Pilot Programme for Climate Resilience (PPCR).

Adaptation Fund

The Adaptation Fund was established under the Kyoto Protocol in 2010, by the UNFCCC. The Fund is financed by governments and private donors, and by two percent of the proceeds of Certified Emission Reductions (CERs) issued under the Protocol’s Clean Development Mechanism projects.

The fund is aimed for adaptation projects and programmes in developing countries. The fund is supervised by the Adaptation Fund Board (AFB). The Adaptation Fund pioneered direct access to climate finance for developing countries, opposed to solely working through UN agencies or Multilateral Development Banks (MDBs), as was most often the case.

Pilot Programme for Climate Resilience (PPCR)

This is a 1.2 billion US dollars pilot program, aimed to support developing countries and regions in building their adaptation and resilience to impacts of climate change. The fund works in two ways:

  1. Assisting governments in integrating climate resilience into strategic development planning across sectors and stakeholder groups.
  2. Providing concessional and grant funding for implementation of the plans in both public and private sector solutions.

The PPCR funding concentrates mainly on small island developing states (SIDS), with funds amounting to about 250 million US dollars in 9 Caribbean and Pacific island nations. In addition, it has invested 200 million US dollars in most vulnerable countries to upgrade climate data and services for climate-smart project designs.

Case example: climate proofing Alotau wharf

The Alotau provincial wharf is a critical transportation and trade link for over 175,000 people on the outer islands of Papua New Guinea. Climate-smart upgrades aim to expand economic opportunities for both men and women, deepen support for disaster relief, and accommodate anticipated sea level rise. (Source: PPCR website.)

This is an additional video, hosted on YouTube.

The two organisations above provide funding aimed largely at improving the public sector, in readiness for climate change impacts. Nevertheless, the private-sector is also impacted by climate change. What role do you think the private sector should play in climate finance?

Sources and References:

Adaptation Fund website

Charlene Watson and Liane Schalatek, Heinrich Böhl Stiftung – North America/ODI, 2019, Climate Thematic Briefing: Adaptation Finance

Pilot Programme for Climate Resilience

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