Adaptation Fund stalemate in Bonn puts vulnerable communities at risk, says head | Carbon markets, Article 6.4, and climate finance

The Adaptation Fund, which has allocated $1.6 billion to 226 projects benefiting 90 million people, faces a funding stalemate at the Bonn climate talks. The fund is supposed to receive 5% of proceeds from Article 6.4 carbon credits under the Paris Agreement, but changing its legal status to accept that money is blocked by political divisions over who is responsible for climate finance. Meanwhile, the US has nearly stopped adaptation funding and European countries are cutting aid budgets for military spending. Without a resolution, the fund's pipeline of projects in vulnerable developing countries is at risk. The amount of revenue from Article 6.4 credits remains uncertain, depending on project volumes and credit prices. The fund previously received over $200 million from a similar share of proceeds under the Kyoto Protocol's Clean Development Mechanism, though credit prices later collapsed. The outcome of these talks will directly affect whether adaptation projects in communities most exposed to climate impacts get funded.