The African Development Bank’s (AfDB) Adaptation Benefits Mechanism (ABM), will be the first and the non-market approach registered on the United Nations Framework Convention on Climate Change’s (UNFCCC) Non-Market Approaches (NMA) Platform. This innovative mechanism creates a new way to mobilize public and private finance, boosting climate adaptation in developing nations.
ABM: A Groundbreaking Mechanism for Climate Adaptation
The ABM certifies the value of resilience using rigorous methods, offering clear data on resilience improvements, co-benefits, and costs. It helps host countries show the financial value of adaptation projects, making adaptation costs clearer and more transparent. It would also be the mechanism to avail crucial information towards tracking climate-related progress under Paris Agreement, the SDGs and ESG Frameworks.
Finally, by incorporating ABSAs under ABM, it enables a project developer in monetizing the certified adaptation benefit and access for capital markets by further accelerating needed funding for climatic resilient projects.
A Milestone for Africa’s Climate Contribution
The ABM’s registration on the UNFCCC’s NMA platform establishes it as a pioneering tool for global climate adaptation under the Paris Agreement. It represents Africa’s contribution to finding innovative climate solutions and sets a model for other regions to follow.
Prof. Anthony Nyong, Director for Climate Change and Green Growth at AfDB, said, “It is time for adaptation finance to benefit from incentive mechanisms such as the ABM”
He added, “Tapping into new funding sources and engaging new actors through the ABM will accelerate and scale-up the dissemination of the myriad of new and already existing adaptation technologies and solutions that are not otherwise affordable, especially to those who need them most.”
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Africa’s Role in Global Climate Action
The ABM was formally submitted to the UNFCCC by Uganda during the COP29 climate conference in Baku in 2024. This submission came with strong support from several African nations, including Nigeria, Kenya, Madagascar, Benin, Gambia, and Guinea, as well as international organizations, governments, and corporations. Notable supporters include the West African Development Bank, CIFOR-ICRAF, Senegal’s Waste Management Authority, and other key organizations.
The ABM will gain further momentum with additional countries and organizations joining the mechanism soon. The African Development Bank continues to play a key role in the NMA platform, supporting and developing the ABM.