Innovative approaches and solutions will be critical to scale up adaptation efforts across the African continent. This includes the African Development Bank-supported Adaptation Benefit Mechanism and the Africa Adaptation Acceleration Program. The latter is a joint initiative between the Bank and the Global Center on Adaptation. This assertion was made clear in a panel discussion on May 26, hosted by the African Development Bank during its 2023 Annual Meetings in Sharm El Sheik, Egypt. The panel of experts highlighted Africa’s urgent need to implement measures to drive climate adaptation, while also stressing a number of obstacles, including the difficulty of measuring and monetising adaptation efforts. Speakers included representatives of the African Development Bank, development partners, and development beneficiaries. Opening the discussion, the African Development Bank Vice President for Power, Energy, Climate & Green Growth, Kevin Kariuki, said climate investments favoured climate mitigation over adaptation, but that this was not to Africa’s benefit.

Kariuki said “many adaptation projects are small-scale and context specific. The micro, small and medium enterprises that would implement these projects are unable to access the international private funds because they lack collateral or expertise to apply.” Climate adaptation projects typically yield little cash flow, although they deliver hard-to-monetise public goods. “The donor community has been seeking adaptation metrics to drive efficiency and enhance support, but alas, the metrics for adaptation do not exist today,” Kariuki added. Under the Adaptation Benefit Mechanism, development partners, consumers, funds and philanthropists will sign purchase agreements for Certified Adaptation Benefits. Project developers will use these as collateral to raise private sector debt, equity and in-kind contributions. Adaptation Benefit Mechanism projects will also incorporate an approved methodology defining the expected adaptation benefits and enabling certification of outcomes that lead to the achievement of desired impacts. The program was launched in a pilot phase in 2019, and two pilot projects are under development: one for climate resilient cocoa in Côte d’Ivoire, and another for rapid deployment dams to counter flooding in Lagos, Nigeria.

Highlighting that the Bank has a number of live adaptation initiatives which are ready to receive contributions, African Development Bank Manager Gareth Phillips said the Bank was working to raise as much as $50 million in funding to capitalise a new fund, tentatively named the “African Adaptation Benefit Fund,” which is expected to be launched at the next global climate summit (COP28) this November. The funds will be used to purchase Certified Adaptation Benefits to kick-start the Adaptation Benefit Mechanism and will also provide technical assistance and support the operation of the Mechanism’s Executive Committee and establishment of a secretariat.