The African Development Bank Group has concluded the pilot phase of the Adaptation Benefits Mechanism (ABM) and formally kicked off the implementation of a transition phase that will lead to the establishment of a permanent Secretariat by 2027. The ABM is the first non-market approach recognized specifically for adaptation by the UNFCCC's under the Paris Agreement.

This milestone was marked at a COP30 event with the theme, "ABM Comes of Age: Transformational Climate Finance in Action", held at the MDB Pavilion on Thursday 13 November.

Developed and hosted by the Bank since 2019, the ABM will shortly proceed to issue Certified Adaptation Benefits (CABs) - a new class of asset that can be used to finance adaptation projects.

At the event, the Bank Group launched a call for expressions of interest from governments and international organizations interested in hosting the ABM. When it becomes fully operational, it may advance global objectives, and the African Development Bank could provide lending to developers of adaptation projects in Africa.

Dr. Kevin Kariuki, the Bank's Vice President for Power, Energy, Climate Change and Green Growth, highlighted the mechanism's transformative potential. "The ABM represents a mechanism that governments can use to demand emitters to contribute towards the cost of adaptation," he said, adding that "Its non-market status means that every dollar spent purchasing a CAB goes directly towards overcoming the financial barriers that adaptation projects face. This is a significant improvement in the use of scarce climate finance."

Gareth Phillips, Bank Group Manager for Climate and Environment Finance, underlined the ABM's contribution to advancing climate resilience:

"The Adaptation Benefits Mechanism shows that adaptation can be financed efficiently and transparently, outside traditional markets," he said. "By certifying the results of adaptation projects, the ABM provides a credible way for governments, companies and citizens to demonstrate solidarity with vulnerable communities while creating a new class of adaptation assets that can attract sustained investment."

The event, moderated by Luc Gnacadja, Co-Chair of the ABM Executive Committee, featured a keynote address by Tariye Gbadegesin, CEO of the Climate Investment Funds, and a panel discussion with representatives from Kenya, the Sahara and Sahel Observatory, the UK and the Bank Group.

As ODA budgets face increasing constraints, the ABM offers a promising alternative to traditional finance, aligning transparency, efficiency, and solidarity in climate action while pioneering private sector mobilization of adaptation finance.

Please visit the ABM website for more information.