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picture1_Csr Ppt 76622 | Abm Presentation


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File: Csr Ppt 76622 | Abm Presentation
the adaptation benefit mechanism titre de la presentation afdb with support from cif is proposing an adaptation benefit mechanism abm which would create adaptation benefit units abus an abu is ...

icon picture PPTX Filetype Power Point PPTX | Posted on 02 Sep 2022 | 3 years ago
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             The Adaptation Benefit Mechanism                                                                      TITRE DE LA PRESENTATION
             •  AfDB with support from CIF is proposing an Adaptation Benefit 
                Mechanism (ABM) which would create Adaptation Benefit Units 
                (ABUs)
             •  An ABU is an output or outcome of an activity which makes 
                households, communities or economies economically stronger 
                and therefore more able to withstand climate-induced shocks 
                (hard and soft; concrete and human)
             •  For sale to donors, CSR buyers, philanthropists and anyone 
                currently buying CERs and VERs
             •  ABM is a results-based payment mechanism that uses CDM 
                infrastructure to deliver verified ABUs to buyers in an efficient 
                and transparent manner
             •  Main purpose is to create a price signal for private sector 
                investors                                                                        ENERGY, ENVIRONMENT & CLIMATE CHANGE DEPARTEMENT
             •  Price signal is monetized via an Adaptation Benefit Offtake 
                Agreement (ABOA) – a bankable instrument just like an ERPA
             Defining feature of the ABM #1                                                                        TITRE DE LA PRESENTATION
             •  ABUs are NOT compliance-based, fungible instruments
             •  There is no compliance obligation and no fundamental need to 
                be able to compare and standardize different kinds of adaptation 
                benefits
             •  Whilst economists would find it useful, commoditizing adaptation 
                suggests that we can create an algorithm that can quantify 
                human suffering
             •  There are at least three upsides to this approach:
                  – The units in which ABUs are denominated do not matter (very significant 
                     implications for the complexity and costs of monitoring and verification);
                  – The ABOA is a commercial transaction between a willing buyer and seller; 
                  – The mechanism escapes the major disadvantages of the CDM – the un-
                     even playing field, the impact of speculation, rewarding of poor 
                     performance and environmental liability                                     ENERGY, ENVIRONMENT & CLIMATE CHANGE DEPARTEMENT
             Defining and counting ABUs                                                                            TITRE DE LA PRESENTATION
             •  For example, anything which improves opportunities for 
                economic activities or protects assets from flood or drought, 
                makes household economically stronger and hence better able to 
                cope with shock
                  – Clean / efficient cookstove reduce time spent collecting firewood and 
                     improve indoor air quality = better health = more productive lives: HH 
                     using clean cookstoves per annum
                  – Flood protection for villages and agricultural land protects assets: 
                     Communities protected from flooding for a decade
                  – Connecting a household to an electric (mini) grid improves economic 
                     output, education, communication etc and makes households more 
                     resilient: HH connected to a grid
                  – Implementation of Climate Smart Agriculture make farming yields more 
                     resilient to climate shock: HH applying CSA per annum
             •  These are the units that would be offered to buyers for sale
                                                                                                 ENERGY, ENVIRONMENT & CLIMATE CHANGE DEPARTEMENT
             Defining feature of the ABM #2                                                                        TITRE DE LA PRESENTATION
             •  An ABM fits better under the Paris Agreement because the 
                principal unit – an Adaptation Benefit Unit – is relatively 
                independent of the primary accounting units of the Paris 
                Agreement
             •  i.e. in claiming credit for creating ABUs and “counting” them, the 
                mechanism is not interfering with the host country’s efforts to 
                achieve its NDC
             •  AND in addition, most adaptation benefit projects will have 
                mitigation co-benefits. Like Sustainable Development benefits 
                under the CDM, these are unquantified and are “left behind” in 
                the host country
             •  These un-quantified benefits will be detected in the national 
                inventory and will have the effect of helping the host country 
                                                                                                 ENERGY, ENVIRONMENT & CLIMATE CHANGE DEPARTEMENT
                achieve their Paris commitment (which is the objective of Art 
                6 of the PA)
                                                                                                                   TITRE DE LA PRESENTATION
                                    How does ABM work?
                                                                                                 ENERGY, ENVIRONMENT & CLIMATE CHANGE DEPARTEMENT
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...The adaptation benefit mechanism titre de la presentation afdb with support from cif is proposing an abm which would create units abus abu output or outcome of activity makes households communities economies economically stronger and therefore more able to withstand climate induced shocks hard soft concrete human for sale donors csr buyers philanthropists anyone currently buying cers vers a results based payment that uses cdm infrastructure deliver verified in efficient transparent manner main purpose price signal private sector investors energy environment change departement monetized via offtake agreement aboa bankable instrument just like erpa defining feature are not compliance fungible instruments there no obligation fundamental need be compare standardize different kinds benefits whilst economists find it useful commoditizing suggests we can algorithm quantify suffering at least three upsides this approach denominated do matter very significant implications complexity costs monit...

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