The African Development Bank has been awarded the Special Jury Grand Prix at the inaugural Finance Your Cities (FYC) Innovation Awards for its groundbreaking Adaptation Benefits Mechanism (ABM).
The prestigious award, supported by the French Ministry of Ecological Transition, the French Agency for Ecological Transition, United Cities and Local Governments, and the European Commission, recognizes the ABM as the most inspiring innovation in urban climate adaptation finance. The Bank's Country Manager for Egypt, Abdourahmane Diaw, and Gareth Phillips, Manager for Climate and Environment Finance, received the award on 5 November 2024 during the 12th World Urban Forum in Cairo, Egypt.
The ABM is an innovative financial instrument for mobilizing public and private sector funding to enhance climate resilience of vulnerable communities and ecosystems. It certifies the multiple benefits of adaptation actions and monetizes them to implement projects that would otherwise not be feasible.
The Mechanism delivers credible, verified, and quantified information on progress towards resilience and sustainable development compared to business-as-usual and the associated finance following a methodological approach and a robust approval process.
The jury highlighted the ABM's innovative approach to overcoming identified barriers and its commitment to building sustainable, climate-resilient urban development. This recognition comes at a crucial time, as 70% of African cities face high vulnerability to climate shocks, with the continent expected to experience temperature increases 2-4 times higher than the global average. The ABM can be instrumental towards this end.
"The negative consequences of climate change are already visible here in Cairo," said Phillips, noting that flash flooding is a new climate change phenomenon, particularly in the old city of Cairo, where the infrastructure is inadequate to absorb the floods. "Various measures are needed to address this challenge effectively, including by the private sector, which could be incentivized via the ABM. The Mechanism is particularly suitable for funding technological solutions for disaster risk reduction and enhanced resilience in the urban environment, especially those driven bottom up by the private sector and the civil society," he emphasized.
The African Development Bank is already implementing demonstration projects, including a water sector initiative in Egypt, starting in 2025, and a women-led plastic collection and recycling facility in Kaolack, Senegal.
"We are particularly excited about the upcoming implementation of a women-led plastic collection and recycling facility in the City of Kaolack, Senegal as an ABM demonstration project. It will play a crucial role in combating climate change-induced floods," stated Khalifa Ababacar Sarr, Director General of the Senegal Waste Management Authority.
Piloted by the Bank since 2019, the ABM can be one of the mechanisms local governments use to engage the private sector in implementing their locally-led adaptation plans. It works with other Bank financial instruments, including the Climate Investment Funds, Africa Climate Change Fund, Climate Action Window, Africa NDC Hub, Facility for African Private Sector Assistance, Climate Technology and Finance Center and Network and the Africa Adaptation Acceleration Programme.
For more information, contact the ABM secretariat at [email protected]
