News

The African Development Bank's Adaptation Benefits Mechanism (ABM), piloted across Africa since 2019, has become the first non-market approach registered on the United Nations Framework Convention on Climate Change’s Non-Market Approaches Platform.

ABM is an innovative mechanism for mobilizing new and additional public and private sector finance to enhance climate change adaptation action. It has the potential to speed up host countries’ transformation toward low-carbon, climate-resilient, and sustainable development pathways by certifying the value of resilience in terms of benefits and incremental costs.

The milestone confirms ABM as a pioneering cooperative mechanism for climate change adaptation under the Paris Agreement.

The ABM certifies quantified adaptation benefits using rigorous methodologies and independent verification, providing transparent data on resilience improvements, co-benefits and the associated finance. This information supports Paris Agreement reporting, SDG tracking, and ESG frameworks. Through Adaptation Benefits Supply Agreements with users of the information generated via the ABM, the mechanism enables project developers to monetize certified benefits and access capital markets, while making adaptation costs transparent.

“It is time for adaptation finance to benefit from incentive mechanisms such as the ABM,” said Prof. Anthony Nyong, Director for Climate Change and Green Growth at the African Development Bank. “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.” I am proud that the African continent has contributed to the global climate change effort with such a groundbreaking mechanism. We call on donors and investors with adaptation commitments to use the ABM to de-risk adaptation investments for African project developers and help demonstrate ABM’s full potential.”

The ABM was submitted to the UNFCCC by Uganda during the COP29 climate conference held in Baku in 2024, with initial support from Nigeria, Kenya, Madagascar, Benin, Gambia and Guinea. International organizations, corporations and government agencies also backed the move, including the West-African Development Bank (BOAD(link is external)), the Center for International Forestry Research and World Agroforestry (CIFOR-ICRAF(link is external)), the Senegal Waste Management Authority (SONAGED(link is external)), SLAMDAM B.V.(link is external), SaniTap(link is external), Allcot(link is external) and Perspectives Climate Research GmbH(link is external).

Mr. Bob Natifu, Uganda’s national UNFCCC focal point for Article 6.8 (non-market approaches) said: “Uganda is proud to have been involved in the development of the ABM from the start. We championed this mechanism, because we need all sources of climate finance and action at all levels to make Uganda climate-proof and to support our low-emission, resilient and sustainable development. It takes a long time and a lot of means to develop, operationalize and de-risk new mechanisms for broader use, while in the absence of sufficient global ambition and action, the list of adaptation needs that they have to address is only growing. I hope that donors and investors will find the ABM an attractive means for engaging massively in international cooperation on adaptation.”

Other countries and organizations are expected to join the ABM shortly. The African Development Bank is registered on the NMA Platform both as a participant in the ABM and as a provider of financial, technology and capacity-building support due to its role in both developing and piloting the mechanism.