India, Dec. 6 -- The Adaptation Fund was set up in 2001 under the Kyoto Protocol to finance projects and programmes in developing countries to adapt to the harmful effects of climate change. The finance was raised, in part, by levying a 2 per cent "share of proceeds" on the value of credits traded on the international carbon market under the Protocol - known as the 'Clean Development Mechanism'. It also relies on contributions from developed countries.

Since 2010, the Adaptation Fund has directed $532 million to 80 concrete adaptation projects in the most vulnerable communities of developing countries, serving 5.8 million direct beneficiaries. In 2018, the Fund raised $129 million in new pledges, a record-setting year. This is owing to i...