Africa has taken a significant step forward in addressing climate change adaptation with the establishment of the Adaptation Benefit Mechanism (ABM). This pioneering initiative, spearheaded by the African Development Bank (AfDB) since 2019, has been recognized by the United Nations Framework Convention on Climate Change (UNFCCC) as the first non-market-based approach registered on its platform.
The ABM introduces a novel approach to mobilizing finance for climate adaptation. By rigorously certifying the quantified benefits of adaptation projects, it provides transparency and encourages investment in climate resilience. This innovative mechanism supports the goals of the Paris Agreement and the Sustainable Development Goals (SDGs) while enabling project developers to access capital markets by monetizing certified adaptation benefits.
Anthony Nyong, Director of Climate Change and Green Growth at the AfDB, emphasized the importance of the ABM in unlocking new funding sources and engaging diverse stakeholders. “Tapping into new funding sources and engaging new stakeholders through the ABM will accelerate and amplify the dissemination of both new and existing adaptation technologies and solutions, which are otherwise unaffordable, especially for those who need them the most,” he stated.
The ABM was submitted to the UNFCCC during COP 29 in Baku, Azerbaijan, with strong support from African countries including Nigeria, Kenya, Madagascar, Benin, Gambia, and Guinea. International organizations and companies have also expressed their support for this groundbreaking initiative. The ABM was officially registered on the UNFCCC platform in December 2024.
“Uganda is proud to have been involved in the development of the ABM from the outset,” said Bob Natifu, National Focal Point for the UNFCCC in Uganda. “We advocated for this mechanism because we need all sources of climate finance and actions at all levels to make Uganda climate-resilient and to support our low-emission, resilient, and sustainable development.”
The ABM is expected to attract further participation from countries and organizations in the coming months. The African Development Bank will continue to play a pivotal role in its development by providing financial, technological, and capacity-building support to ensure the successful implementation and scaling up of this innovative climate adaptation mechanism.
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