The Kyoto Protocol of the United Nations Framework Convention on Climatic Change (UNFCCC) stated that parties to the Protocol shall ensure that a share of the proceeds from the certified project activities is used to cover administrative expenses as well as to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation. In line with this decision (Articleno. 12.8 of Kyoto Protocol), at the seventh session of the Conference of the Parties to the UNFCCC, held at Marrakesh, Morocco, in Oct-Nov 2001, the Adaptation Fund has been set up.
To supervise the operation of the Fund and to approve projects for adaptation activity in eligible developing countries an Adaptation Fund Board (AFB) was set up in 2008. India as an eligible country has access to Adaptation Fund and can seek financial support to undertake adaptation activities at national and regional level.
As per the ‘Operational policies and guidelines for parties to access resources from the Adaptation Fund’, projects can be prepared and submitted by National Implementing Entities (NIEs) to the designated authority of the national government for endorsementto the AFB Secretariat for consideration and sanction.
NABARD has been accredited by the Adaptation Fund Board of UNFCCC as National Implementing Entity (NIE) in India.The NIE bears full responsibility for the overall management of the projects and programmes financed by the Adaptation Fund and will bear all financial, monitoring, and reporting responsibilities. The NIEs may appoint Executing Entities to execute projects and programmes under its oversight. Government Department, Research Institutions, Universities, NGOs, etc. are eligible to submit projects directly to NIE (NABARD) and to act as Executing Entities. As of now, three projects amounting to US$ 5.0 million have been approved by AFB for implementation in the States of West Bengal, Andhra Pradesh and Madhya Pradesh.
The project proposals can be submitted as per the template prescribed by Adaptation Fund. Project proponents may also refer instructions for preparation of project proposal before submission of the proposals.