Voluntary Contribution to the Adaptation Fund (AF)

Developing countries face increasingly frequent and intense climate-related rapid (e.g. floods) and slow onset events (e.g. sea level rise). Their Adaptation needs are rising accordingly but remain massively underfunded (USD 194-366bn “adaptationf inance gap” per year; UNEP 2023). In 2022 bilateral and multilaterala daptation finance flows to such countries amounted to USD 32.4bn.

Among the only four funds that report to the conferences of the global climate agreements (COPs), the AF is the one solely focusing on adaptation. As a matter of priority, the AF supports innovative adaptation solutions that can be scaled or replicated elsewhere. For Switzerland, the AF’s comparative advantage lies not only in its effective support to concrete adaptation activity but also in strengthening longterm capacity of institutions in developing countries to manage such work. The AF is known for its agility, including its efficient project approval process.

As a Party to the Paris Agreement and member of the AF Board, Switzerland has influenced AF operations from its inception, helping to improve many specific projects, to foster its results-based management and to sharpen its focus on womena nd on the poorests egmentso f society. The proposal is supported interdepartmentally (agreement between the directors of FOEN. SDC and SECO in the Plafico coordination platform) and is weII aligned with the Swiss International Cooperation Strategy. The contribution is counted under the strategy’s CHF 400 million climate finance target.

• 41 million of direct/indirect beneficiaries strengthen their capacity to adapt to climate change.
• 526 Early Warning Systems installed
• 107 policies introduced or adjusted to address climate change risks
• 635’296 ha of natural habitats created, protected or rehabilitated/restored
• 163’775 meters of coastline protected

Switzerland/SDC’s main objectives of the planned phase:

• The AF further increases its effectiveness focusing on innovative and scalable adaptation interventions that benefit the most vulnerable people and help strengthen institutions, including in conflictaffected/fragile countries.
• Increase coherence, complementarity and synergies with other adaptation finance providers.

Risultati principali attesi:  

1. Action – high quality, local level and scalable adaptation projects and programmes (55% single-country, 25% regional, 25% locally-led projects, including with direct access by local institutions).
2. Innovation – roll out of innovation grants: large (max. USD5m, totaling USD30m/y), small (USD 250K, USD 1.5m/y) and a direct access window for local institutions (two rounds of funding totaling USD 100m).
3. Learning and Sharing – roll out of small “learning grants” (500K), studies on project experience, analytical reports, e-learning courses, knowledge exchange events and practitioners network.

Risultati fasi precedenti:  

Thus far AF projects enabled amongst other:

• 3.8 million people to increase their adaptation capacities (conservative estimate);
• the creation, protection or rehabilitation of more than 1 ’557’149 hectares of natural habitats; 
• the installation of 255 early warning systems;
• the protection of 25km of coastlines against the adverse effect of climate change (notably sea-level rise); and
• the introduction or adjustment of 89 policies to address climate change risks.

The AF was the first international climate fund which provided “direct access” to developing countries institutions with a view to enhance country ownership and capacity, and lower transaction costs. Today about a fifth of the AF’s portfolio is implemented by national implementing entities.