UNEP supports countries in accessing adaptation finance from a variety of sources. As a Multi-lateral Implementing Entity (MIE) of the Adaptation Fund, established under the Kyoto Protocol of the UNFCCC, UNEP assists countries in developing and submitting adaptation project proposals to the Fund. MIEs bear the full responsibility for the overall management of the projects and programmes submitted through them, and will bear all financial, monitoring, and reporting responsibilities. UNEP is currently working with several countries to prepare project proposals for submission to the Adaptation Fund Board (AFB) through the MIE track. A proposal to build the climate resilience of the rice sector in Madagascar was approved by the 11th meeting of the AFB.
One of the key innovations of the Adaptation Fund is that it provides a direct funding modality to countries which meet the international fiduciary standards of the Fund. Thus, countries have the choice of submitting proposals via a National Implementing Entity (NIE), as well as through Multilateral Implementation Entities (MIEs). In both cases, the Implementing Entity first submits an application to the AFB for accreditation. Once accredited, the Implementing Entity bears full responsibility for programmes and projects submitted to the Board for approval through it.
While many developing countries have expressed interest in attaining National Implementing Entity (NIE) status, there are limitations to their capacity to use the direct access modality due to the requirements for and the complex procedures involved in NIE accreditation. In response to requests from several countries and the Adaptation Fund Board, UNEP is collaborating with UNDP and the World Bank in providing support for the establishment of NIEs, through which countries can access the Adaptation Fund resources directly.
Such support involves advising the countries on the NIE application requirements, supporting the identification of an appropriate NIE candidate, conducting a capacity needs assessment, and supporting the development and implementation of a capacity development strategy to address the capacity gaps identified for meeting the fiduciary and programme management standards. The countries are also assisted to compile the necessary supporting documentation and to complete the NIE application. The support is provided by regional advisors and a network of regional experts, as well as through leveraging the in-country presence of the UN Resident Coordinator and the UN Country Team.
UNEP is also prepared to extend its support for access to finance to other climate change funding mechanisms in the future.