Unlocking Climate Finance: What the Adaptation Fund’s US$137 Million Boost Means for Ghana

The Adaptation Fund Board's approval of a record US$ 137 million in new adaptation projects and the doubling of country spending caps to US$ 40 million is a major milestone, especially for climate-vulnerable African countries like Ghana. Here's a breakdown of what this means and its potential impact:

🔍 Key Highlights of the Fund’s Decisions

US$ 137 million in new projects approved, the highest ever in a single board meeting.
Country cap doubled from US$ 20 million to US$ 40 million.
Single-country project cap increased from US$ 10 million to US$ 25 million.
Regional project cap increased from US$ 14 million to US$ 30 million.
US$ 30 million set aside for a new regional aggregator program for Locally Led Adaptation (LLA).
Support to non-accredited entities via regional LLA programs.

🌍 Implications for African Countries Like Ghana

1. Increased Access to Finance

The doubling of the country cap allows Ghana to access up to US$ 40 million, unlocking the opportunity for larger and more impactful adaptation projects. This could fund initiatives across key vulnerable sectors such as:

Agriculture and food security
Coastal zone management
Urban flood resilience
Water resource management

2. Greater Local Ownership through LLA

The expansion of Locally Led Adaptation (LLA) funding and the establishment of a regional aggregator program means local governments, CSOs, and community-based organizations in Ghana (including those not accredited directly with the AF) could access resources. This decentralizes climate finance and ensures context-specific adaptation solutions.

3. Stronger Institutional Capacity

Ghana can now explore the possibility of accrediting an additional National Implementing Entity (NIE), like Kenya has done. This would strengthen national systems, improve country ownership, and streamline direct access to funding.

4. More Opportunities for Regional Collaboration

With the cap on regional projects now raised to US$ 30 million, Ghana can collaborate with neighboring countries on transboundary climate adaptation initiatives—for example, in managing the Volta Basin or addressing Sahelian desertification trends.

5. Support for Proposal Development

The US$ 1.2 million committed for project formulation grants offers Ghana the opportunity to develop high-quality proposals, even in collaboration with regional implementing entities.

📈 Strategic Significance for Ghana

Ghana, as a member of various climate finance and adaptation networks, including the African CSOs Working Group on Climate Change, can leverage these developments to push for timely disbursement, inclusive access, and capacity building.
As the Fund aligns with the UN-mandated goal to triple adaptation finance by 2030, Ghana has a narrow but golden window to scale its national adaptation plan and climate-resilient development agenda.

🔄 Next Steps Ghana Could Take

Update pipeline of priority adaptation projects to align with the increased funding caps.
Strengthen coordination among NIEs, ministries, and civil society to fast-track proposal development.
Engage in regional dialogues to co-develop projects under the regional funding windows.
Push for accreditation or partnership with regional LLA aggregators to enable grassroots access.

In summary, this funding boost is more than just a financial shift—it's a strategic opportunity for Ghana to enhance climate resilience, decentralize adaptation efforts, and mobilize broader coalitions to access and implement sustainable solutions.

Cedric Dzelu

Technical Director | Office of the Minister for Climate Change and Sustainability

Executive Director | Frontline for Climate Action

frontlineclimateaction@gmail.com