Adaptation Fund A fund to satisfy Africa’s needs?

This policy brief by the Institute for Security Studies examines the Adaptation Fund (AF), its operational mechanisms, and its effectiveness in meeting the climate adaptation needs of African countries. It highlights the fund's unique 'direct access' modality and the challenges associated with its primary funding source, the Clean Development Mechanism (CDM).

• Africa is highly vulnerable to climate change despite contributing less than 4% of global greenhouse gas emissions. Projections indicate that by 2020, rain-fed agriculture in the region could decrease by up to 50%, and between 75 and 250 million people could face severe water shortages. The annual cost to Africa's GDP by 2030 is estimated at 1.5% to 3%.
• The Adaptation Fund (AF) is unique because it allows developing countries 'direct access' to resources through a National Implementing Entity (NIE). This process is designed to increase speed, target local priorities, and ensure country ownership by removing the need for third-party intermediaries. However, Africa faces challenges in building the capacity to establish the necessary climate governance structures to utilize this mechanism.
• The AF's primary funding source is a 2% levy on carbon offset revenues from the Clean Development Mechanism (CDM), which has mobilized $150 million. This funding model is criticized for being unreliable due to its dependence on carbon market stability and for potentially transferring funds from large CDM host countries like China, Brazil, and India to other vulnerable countries, rather than from developed to developing nations.
• Africa has received 24.9% of the AF's global adaptation funds, the second highest share after Asia (35.1%). Despite this, only two projects in Africa were approved as of the report's writing: one in Senegal regarding coastal erosion and one in Eritrea regarding water and agriculture in the Anseba Region, both approved in September 2010 and receiving only a small portion of requested funds.

APA

Reddy, T., Zhanje, S., & Taylor, T. (n.d.). Adaptation Fund A fund to satisfy Africa’s needs? Institute for Security Studies. https://issafrica.s3.amazonaws.com/site/uploads/ISS_ELA_AdaptFund1.pdf

Chicago

Reddy, Trusha, Simbisai Zhanje, and Tristen Taylor. Adaptation Fund A fund to satisfy Africa’s needs? Institute for Security Studies, n.d. https://issafrica.s3.amazonaws.com/site/uploads/ISS_ELA_AdaptFund1.pdf.

Wikipedia

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BibTeX

@techreport{reddyndadaptation, author = {Reddy, Trusha and Zhanje, Simbisai and Taylor, Tristen}, title = {{Adaptation Fund A fund to satisfy Africa’s needs?}}, institution = {Institute for Security Studies}, url = {https://issafrica.s3.amazonaws.com/site/uploads/ISS_ELA_AdaptFund1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }