This working paper looks at the effectiveness of the Adaptation Fund which has piloted new approaches to delivering climate finance.

The Fund is partly capitalised through a 2 per cent levy on the Clean Development Mechanism. The paper argues that it has played a significant role in scaling up available finance for adaptation in developing countries, albeit from a very low baseline, and operates with high levels of transparency. The paper started that early progress on a results framework helped focus the Fund’s operations and foster learning. It also argues that The Fund’s sourcing of finance has generated lower revenues than hoped, however, and substantial questions remain about the predictability of funding. The paper highlights that although accreditation processes have become more established over time, in practice ensuring strong coordination and ownership of programs across stakeholders in country is an on-going challenge.