Adaptation Benefit Mechanism ABM Projects · Adaptation Benefit Mechanism Sean Weaver, Executive Director, Ekos [email protected] ABM Projects. 1. Activity Types ... performance-based

Adaptation Benefit Mechanism

Sean Weaver, Executive Director, [email protected]

ABM Projects

1. Activity Types2. Project Description3. Issuing ABUs4. Cost Declaration & Pricing5. Monetizing ABUs

1. Activity Types2. Project Description3. Cost Declaration4. Issuing & Pricing ABUs5. Monetizing ABUs


Main Scope Scope as per IPCC AR5

WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)

Freshwater resources

Terrestrial and

freshwater ecosystems

Coastal systems and

low lying areas

Marine systems

Food security and food

production systems

Resilient

infrastructure

Urban areas

Rural areas

Economic sector

resilience

Key economic sectors

and services

Community

resilience

Human health

Human security

Livelihoods and

poverty



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas #6

Rural areas #6

Economic sector

resilience


and services

Community

resilience

Human health #6

Human security

Livelihoods and

poverty

#6

Riparian Revegetation



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas #6

Rural areas #6

Economic sector

resilience


and services

Community

resilience

Human health #6

Human security

Livelihoods and

poverty

Rainforest Protection & Enhancement



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas #6

Rural areas #6

Economic sector

resilience


and services

Community

resilience

Human health #6

Human security

Livelihoods and

poverty

#6

Rainforest Protection & Enhancement



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)

Freshwater resources #6

Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas #6

Rural areas #6

Economic sector

resilience


and services

Community

resilience

Human health #6

Human security

Livelihoods and

poverty

#6

Mangrove Protection & Enhancement



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas

Rural areas #6

Economic sector

resilience


and services

Community

resilience

Human health #6

Human security

Livelihoods and

poverty

#6

Water Recycling Retrofit



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

#6

Resilient

infrastructure

Urban areas

Rural areas

Economic sector

resilience


and services

Community

resilience

Human health

Human security

Livelihoods and

poverty

#6

WASH Systems Upgrade



WG-2

Activity

Class

Activity

Type

Adaptation

elements

SDGs Target

and indicator

Ecosystems

resilience

(Ecological

Infrastructure)


Terrestrial and


Coastal systems and

low lying areas

Marine systems


production systems

Resilient

infrastructure

Urban areas

Rural areas

Economic sector

resilience


and services

Community

resilience

Human health

Human security

Livelihoods and

poverty

UniversalAccess & Safely

Managed

Private Sector Unassisted

ABM

Direct Government Interventions




a) Demonstrate eligibilityb) Project governancec) Stakeholder consultations (FPIC)d) ABU MRV methodologye) ABU Assertionf) ABU Cost Declaration



ABU = a ‘low-cost-to-measure’ quantifiable proxy for adaptation benefit delivery that meets ABM eligibility criteria.

Each ABU is backed by a more detailed metric described in the PD.

Each ABU has transparent attribution to the project.


Example: 1 ABU =

1 Habitat Hectare Unit = 1 hectare of mangrove forest revegetated per year & managed for the project period.

Example: 1 ABU =

1 Person Year = 1 person served (directly and indirectly) by project intervention per year during the project period.



ABU Unit Price yr x = ABUs Issued yr x

Net costs yr x - Net revenue yr x

Pre-ABU Balance yr x

Pre-ABU Balanceyr x =

Where:

Market: Unit price is set by supply and demand

ABM: Unit price is set transparently at cost

Cost Declaration Example

Tracking To Self-Sustainability



$0

$50 000

$100 000

$150 000

$200 000

$250 000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Série1



Pre-ABU Balance

$250 000

$200 000

$150 000

$100 000

$50 000

$0

$50 000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Série1

ABU Revenue

$0

$50 000

$100 000

$150 000

$200 000

$250 000

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Série1

Série2

Série3

Série4



Non-ABU Revenue

Grant

Subscriptions

Sales

Total

$0,00

$0,50

$1,00

$1,50

$2,00

$2,50

$3,00

$3,50

$4,00

$4,50

$5,00

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Série1



ABU Unit Price



ABM delivers performance-based funding for projects where the marginal cost of adaptation is higher than the free market will accommodate

Private Sector Unassisted

ABM

Direct Government Interventions



Demand

Supply


Demand

Supply


Demand

Supply


Demand

?Compliance?States?

Where is demand coming from?

Voluntary?Private Sector?

States?Private Sector?

Demand

?

Competing with the rest of philanthropy and the voluntary carbon markets

Substantial supply side investment risk

Where is demand coming from?

Significant risk of ABM failure

States?Private Sector

DirectStates

BilateralStates

Via MDBs

States?Private Sector

DirectStates

BilateralStates

Via MDBs

Track 1Bilateral

Paris Articles 6.1, 6.2, 6.8, 6.9

Track 2ABU Fund

[AfDB, WB, ADB]& Paris Articles6.1, 6.2, 6.8, 6.9

Track 3Sub-NationalCorporate Social Responsibility &

Philanthropy

Adaptation Benefit Mechanism

High Quality, Low Risk Spending on Climate Change Adaptation

Ex Post Mechanism

Documents

Adaptation Benefit Mechanism ABM Projects · Adaptation Benefit Mechanism Sean Weaver, Executive Director, Ekos [email protected] ABM Projects. 1. Activity Types ... performance-based