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Adaptation Fund under United Nations Framework Convention on Climate Change (UNFCCC)

The Adaptation Fund (AF) was set up under the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC). It was established in 2001 and officially launched in 2007 at CoP 7 in Marrakech, Morocco. It aims to finance concrete projects and programmes that help vulnerable communities in developing countries that are Parties to the Kyoto Protocol to adapt to climate change. The Fund is financed in part by government and private donors, and also from a two percent share of proceeds of Certified Emission Reductions (CERs) issued under the Protocol’s Clean Development Mechanism (CDM) projects.

The Adaptation Fund headquartered in Washington, USA is supervised and managed by the Adaptation Fund Board (AFB). The AFB is composed of 16 members and 16 alternates and holds periodic meetings throughout the year. The World Bank serves as trustee of the Adaptation Fund on an interim basis.

Ministry of Environment, Forest & Climate Change, Govt. of India is the National Designated Authority (NDA) for Adaptation Fund and proposals are submitted with endorsement of NDA.

NABARD has been accredited as National Implementing Entity (NIE) for Adaptation Fund in July 2012 and is the only NIE for India. The NIEs are those national legal entities nominated by Parties (to the Kyoto Protocol) that are recognized by the Board as meeting the fiduciary standards established by the Board. The NIEs bear full responsibility for the overall management of the projects and programmes financed by the Adaptation Fund and have all financial, monitoring, and reporting responsibilities. With a view to generate feasible projects, various steps have been taken such as conducting of National Interface, state level workshops, capacity building of its own staff and partner institutions, partnership with national and international agencies etc.

NABARD in the capacity of NIE can access Adaptation Fund from AFB for implementation of feasible climate adaptation projects posed by eligible Executive Entities such as Central/State Government Departments, NGOs, Research Institutions and Technical Institutions etc.

The Adaptation Fund Board has made available various funding windows apart from the regular Direct Access projects. Under the direct access, amount allocated to India has been enhanced to USD 20 million, out of which projects including USD 9.86 million grant has been already sanctioned. NABARD is soliciting proposals from eligible Executing Entities. Interested entities may submit Concept Note/Proposals through Regional Offices of NABARD.

Further details regarding the funding windows of Adaptation Fund may be accessed from

The project concepts / proposals are scrutinized by NABARD RO and HO and finalized proposals are submitted to MoEF&CC for endorsement of the same to Adaptation Fund. The proposals/ concepts submitted by NABARD are subjected to initial technical review by AF secretariat. Based on the comments from AF, the proposals/ concepts are revised for consideration by AF Board. AF Board meetings are held once in six months (i.e. April and October).

If the concept is endorsed, Project Formulation Grant (PFG) can be availed for DPR preparation to an extent of USD 30,000.

Projects sanctioned under Adaptation Fund Board

Technical Assistance Grant for ESP and Gender

NABARD in the capacity of NIE to the Adaptation Fund has availed Technical Assistance (TA) grant for sourcing technical assistance for assessment and management of environmental, social and gender risks within projects and programmes in India. The TA was aimed to strengthen the operationalization of Environmental and Social framework and its monitoring, evaluation at Project level and reporting at NABARD level for AF projects. A Toolkit is developed as part of the TA to help in the organization, structuring, and analysis of information, pertaining to Environment, Social and Gender aspects, the consistency of its handling, and to help avoid gaps in analysis and assessments.

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