GENERAL INFORMATION
Grant Approval Date
End (estimated) Date
Project Cost
$ 500,000
Sector
Climate finance
Executing Agency
African Development Bank
Current status
Ongoing
Background
Smallholder cocoa farmers in Côte d’Ivoire lack the capacity and financial means to withstand climate shocks. They are highly vulnerable to climate change because cocoa trees, their main source of income, are extremely sensitive to rising temperatures, irregular rainfall, and pests that are being exacerbated by climate change.
Public finance for climate change adaptation is currently insufficient to meet the needs of developing countries, including Côte d’Ivoire. Private sector investments in adaptation technologies and solutions are largely absent, even though the private sector has a critical role to play in achieving the transition toward a climate-resilient future as envisioned by the Paris Agreement.
The Adaptation Benefits Mechanism (ABM) is a results-based, non-market mechanism piloted by the African Development Bank between 2019 and 2023 to mobilize public and private finance for adaptation. It introduces the concept of certified adaptation benefits, which capture the value of resilience in social, economic, and environmental terms, as well as the associated incremental costs and climate finance, in a measurable, reportable, and verifiable way. The off-take of adaptation benefits creates a revenue stream that can make adaptation activities, which would otherwise not be implemented, financially viable.
Objectives
The project aims to empower vulnerable smallholder farmers of existing cocoa plantations in Côte d’Ivoire to become more resilient to the negative impacts of climate change. A package of resilient and sustainable measures, developed by the International Agroforestry Agency (ICRAF) and partners, will be introduced to two smallholder cocoa farmer communities with existing cocoa plantations in Soubre and Vavoua. The ABM will be used to mobilize additional finance for replication of the successful measures in other cocoa farmers communities in Côte d’Ivoire and in at least three other cocoa-producing countries in the region.
Main Components/Outputs
The project components include:
Component A: Strengthening the Enabling Environment for the Mobilization of Adaptation Finance
Outcome 1: Key stakeholders are empowered to use the Adaptation Benefits Mechanism (ABM) for the mobilization of climate finance.
Output 1.1: Awareness of key stakeholders on the ABM has been raised, and input from stakeholders has been collected.
Component B: Piloting the ABM Modalities, Procedures and Guidelines
Outcome 2: An operational Adaptation Benefits Mechanism for the cocoa sector has been delivered.
Output 2.1: The ABM modalities, procedures and guidelines have been developed and tested in the cocoa sector.
Component C: Piloting Adaptation Benefits as a Means for Resource Mobilization
Outcome 3: The ABM has proven to be an effective mechanism for mobilizing new finance for adaptation.
Output 3.1: New and additional finance for the replication of resilience measures undertaken under the Cocoa Livelihood Resilience Initiative has been mobilized.
Component D: Delivering an Operational ABM for the Cocoa Sector to the International Community
Outcome 4: Wider use of the ABM by the international community is enabled.
Output 4.1: The international community has access to knowledge on the ABM.
Key Achievements or Progress
The project key deliverables upon completion include the following:
Launch of the project, including a kick-off meeting held on 25 June 2020, and training on disbursement and procurement in line with Bank rules.
Establishment and operation of the Project Management Unit (PMU).
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