The Adaptation Fund is not yet operational. The recent 12th Conference of Parties (CoP12) to the Climate Change Convention agreed some elements of operational guidance for the fund. We expect that other key elements of guidance, such as the management agency, will be agreed at CoP13 in 2007, so that the fund can become operational in 2008.
The fund will be financed primarily from a 2 per cent. levy on the value of emission offset projects in developing countries under the Clean Development Mechanism of the Kyoto Protocol.
The UK Government have committed a total of £20 million to the UN Special Climate Change Fund (SCCF) and the UN Least Developed Countries Fund (LDCF) which have been operational since 2004 and 2005 respectively. The UK is the largest donor to the SCCF and the second largest donor to the LDCF.