The African Development Bank is piloting the ABM, a program in which reputable international organizations will be able to certify the benefits of specific adaptation activities (certified adaptation benefits) to project developers and/or governments. These project developers and/or governments will transfer these certificates to donors or climate change financiers based on pre-existing off-take agreements. The pre-existing off-take agreements are beneficial, as they allow the project proponent to use the agreement as extra security or collateral when seeking upfront loans or equity investments. This ability to use certificates as collateral may allow for projects to draw needed initial investors when they would not otherwise have found the investment opportunity to be attractive.
The ABM is the first non-market approach registered on the United Nations Framework Convention on Climate Change’s Non-Market Approaches Platform.
Potential Adaptation-relevant Sector Applications
- crop and food production – including agroforestry; livestock production; fisheries (marine, freshwater, and aquaculture); irrigation;
- ecological services and management – forest management (including afforestation and reforestation); wetlands; ecosystem and biodiversity protection, conservation, and enhancement;
- water supply (infrastructure) – water storage; water harvesting; water management;
- disaster risk reduction – early warning and observation systems; and
- energy infrastructure.
Additional Insights
- This tool is at the pilot stage and was launched in 2019. Eight demonstration projects were being implemented in 2023, including climate-resilient cocoa in Côte d’Ivoire and rapid-deployment dams to counter flooding in Lagos, Nigeria.
Considerations for Using the ABM
- ABM methodologies to capture the impact of adaptation activities include an approved methodology for cold storage of seed potatoes in Kenya and proposed methodologies for mobile flood barriers and access to climate-secure, safe drinking water.
- The mechanism requires adequate means of monitoring and verifying delivery.
- The mechanism must have buyers/investors willing to purchase Certified Adaptation Benefits.
- Interest has been expressed in projects ranging from USD 1 million to USD 50 million.
Adapted From the Following Sources
Adaptation Benefits Mechanism. (2025). Adaptation benefits mechanism. https://abmechanism.com
United Nations Climate Change. (2025). Adaptation benefits mechanism (ABM). https://unfccc.int/process-and-meetings/the-paris-agreement/cooperative-implementation/Article-6-8/nma-platform/main/non-market-approaches/ad2f0eae-8ca2-ef11-a81c-000d3adab56e