Adaptation Benefits Mechanism

The Adaptation Benefits Mechanism (ABM) is a results-based financing tool that uses grants to repay commercial investors based on third-party valuations of adaptation benefits. Launched in 2019 and running through 2023, the pilot phase aims to deploy USD 50 million, with the African Development Bank leading implementation. The mechanism is particularly suited for land use and forestry projects and requires the involvement of project beneficiaries in design and monitoring. While applicable globally, Ghana and Cote d’Ivoire are identified as the most supportive countries for proposing pilot projects.

• The Adaptation Benefits Mechanism (ABM) operates as a results-based financing instrument that uses grants to repay commercial investors, with payments determined by a non-market valuation of adaptation benefits conducted by a third party. It is specifically noted as being well-suited for forestry and land use projects where benefits are easily quantified and subsidized capital can bridge the gap between market terms and the payment capacity of communities.
• The ABM pilot phase, which began in 2019 and is scheduled to conclude in 2023, aims to deploy USD 50 million to projects. The African Development Bank (AfDB) is the lead entity for the pilot, managing the Secretariat, operations, and fundraising.

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} }