Adaptation Benefit Mechanism (ABM)
Organizational profile: The Adaptation Benefit Mechanism (ABM) is an innovative mechanism for mobilizing new and additional public and private sector finance for enhanced climate change adaptation action. It has the potential to speed up the transformation to low-carbon, resilient and sustainable development of the host countries by giving value to resilience. ABM will de-risk and incentivize investments by facilitating payments for the delivery of Adaptation Benefits.
Starting in 2019 to 2023, ABM will be tested on the ground through pilots in collaboration with partners, such as the UN Capital Development Fund (UNCDF). The pilot phase will aim at 10-12 demonstration projects in Africa. ABM will be tested with small-scale projects, which are either replicable or scalable or need funding for continued maintenance and operation. The certificates for the Adaptation Benefits of the demonstration projects will be granted to the project developer for free, while the Adaptation Benefits of replication, up-scaling or continued maintenance and operation will be promoted to various potential investors or lenders to mobilize enhanced action and finance.
Financing Instrument: Grants
Project scale: currently unknown
Recipient countries regions/country groups: Africa.
Recipient categories: Governments
Eligibility Criteria: The scope for ABM projects is very broad covering all aspects of adaptation and resilience to climate change. The ABM has developed some initial methodologies that can be tailored to a specific context. However, project developers are free to propose new methodologies. Early concepts include:
- Solar-powered irrigation pumps to help farmers overcome unreliable rainfall;
- Drip irrigation technology to make better use of available irrigation water;
- Sustainable practices to protect cacao plantations form diseases exacerbated by climate change;
- Climate resilient agriculture to diversify income streams of vulnerable farmers;
- Development of weather information systems to provide farmers with accurate weather forecasts;
- Job creation for the most vulnerable groups affected by climate hazards, particularly women and youth;
- Coastal protection through afforestation with mangrove trees;
- A range of clean energy technologies.
Eligible projects must follow an approved methodology to confirm that (i) the actions are additional to business as usual, (ii) that the additional cash flow helps to overcome barriers that currently prevent investment, (iii) to determine a baseline (iv) to show that the host country agrees with that the project contributes to its adaptation goals and (v) to demonstrate how the Adaptation Benefitts (ABs) will be monitored.
Application guidelines: African countries wishing to Pilot ABM are invited to discuss opportunities for engagement.
Proposals for new ABM methodologies/methodological tools, revisions of approved ABM methodologies/methodological tools and clarification requests may be submitted to the ABM secretariat at any time through the dedicated interface on the ABM website. Until such time as the interface is operational, submissions may be made by email to the ABM secretariat.