Adaptation Benefits Mechanism

The Adaptation Benefits Mechanism (ABM) is a results-based financing instrument that uses grants to repay commercial investors based on third-party valuations of adaptation benefits, specifically targeting private investment in projects such as land use and forestry.

• The Adaptation Benefits Mechanism (ABM) operates as a results-based financing tool that provides grants to project sponsors to repay commercial investors. These payments are determined by a non-market valuation of adaptation benefits conducted by a third party. The mechanism is particularly applicable to forestry and land use projects where benefits are quantifiable and subsidized capital can bridge the gap between market terms and the payment capacity of communities.
• Launched in 2019, the ABM is currently in a pilot phase scheduled to run through 2023, with a target deployment of USD 50 million. The African Development Bank (AfDB) leads the implementation, managing the Secretariat, operations, and fundraising.
• The ABM involves a diverse set of stakeholders, including donors (DFIs, philanthropies, and the private sector), project developers (for-profit and non-profit), and investors (commercial or national development banks, private equity funds, and DFIs). Host country governments can report the generated adaptation benefits within their Nationally Determined Contributions (NDCs).

APA

Climate Policy Initiative (2021). Adaptation Benefits Mechanism. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/adaptation-benefits-mechanism-2/

Chicago

Climate Policy Initiative. Adaptation Benefits Mechanism. 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/adaptation-benefits-mechanism-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Adaptation Benefits Mechanism |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/adaptation-benefits-mechanism-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021adaptation, author = {{Climate Policy Initiative}}, title = {{Adaptation Benefits Mechanism}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/adaptation-benefits-mechanism-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }