Financing local climate change adaptation Local Climate Adaptive Living Facility (LoCAL)

"LoCAL for me is the right fix for people at the community level"
Ebrima Sawaneh Director of Community Development Department Ministry of Lands and Regional Government, The Gambia

Bridging the finance and capacity gap

The Local Climate Adaptive Living Facility (LoCAL) helps local government authorities in developing and least developed countries access the climate finance and capacity-building and technical support they need to respond and adapt to climate change.

A standard, internationally recognized mechanism designed and hosted by the UN Capital Development Fund (UNCDF), LoCAL promotes climate change– resilient communities and local economies.

Why LoCAL?

While much attention is given to international climate negotiations and national-level action, the impacts of climate change are most dramatically observed – and experienced – at the local level.

Local governments can be a powerful ally in promoting climate change adaptation and building resilient communities because they:

Understand local needs and are on the front line of climate change adaptation action

Have a mandate to undertake small to medium-sized adaptation and infrastructure investments – e.g. in agriculture and irrigation, water and sanitation, transport and drainage, and natural resource management

Can bring together various actors for results, including national-level institutions, civil society bodies, the private sector and decentralized government departments

LoCAL is an internationally recognized country- based mechanism that channels climate finance to local government authorities in developing countries.

LoCAL responds to the Paris Agreement and contributes to achievement of the Sustainable Development Goals (SDGs) – particularly SDG 1, ending poverty; SDG 11, Flexible sustainable cities and communities; and SDG 13, combating climate change and its impacts – with concrete action at the local level.

LoCAL is

Systemic and scalable, as it uses government systems rather than project or parallel approaches

Flexible and sustainable, as it is tailored to national circumstances and contextualized for local climate responses

Standardized, in its design, quality assurance, monitoring and reporting

How LoCAL works

LoCAL combines performance-based climate resilience grants (PBCRGs) – which ensure programming and verification of climate change expenditures at the local level while offering strong incentives for performance improvements in enhanced resilience – with technical and capacity-building support.

PBCRGs provide a financial top-up to cover the additional costs of making local investments climate resilient; these are channelled through existing government fiscal transfer systems. The grants include minimum conditions, performance measures and a menu of eligible investments.

Putting PBCRGs in place typically involves:

  • Undertaking local climate risk assessments to inform adaptation planning and mainstreaming.
  • Integrating adaptation in a participatory and gender-sensitive manner in their local development planning and budgeting processes.
  • Developing, selecting and implementing adaptation measures.
  • Developing, selecting and implementing adaptation measures
  • Appraising performance to determine how additional resources have been used and conducting audits as part of a regular national process; these performance results inform the next year’s PBCRG allocations and capacity- building support
  • Providing capacity-building and technical support activities to identified needs at the policy, institutional and individual levels

Where is LoCAL?

Engaged in over 20 countries with the potential to reach more than 500 million people.

Over 20 countries worldwide have adopted the LoCAL mechanism; country initiatives are at various phases of implementation:

I: Piloting involves initiating LoCAL in 2–4 local governments over 1–2 cycles of investments, collecting lessons and fine-tuning the mechanism

II: Consolidating involves expanding and demonstrating LoCAL effectiveness at a larger scale, typically in over 5–10 local governments

II: Scaling-up is gradual nation- wide roll-out of LoCAL as the national system for channelling domestic and international adaptation finance to the local level

LoCAL action delivers local results

Serves as proven mechanism for international community to channel climate change finance to world’s most remote and vulnerable regions and populations

Recognized by Least Developed Countries Expert Group of UN Framework Convention on Climate Change as proven avenue for vertical integration of national adaptation plans with guideline approval and forthcoming ISO certification

Integrates climate change adaptation into local development planning

Supports implementation of national climate change strategies, such as nationally determined contributions, national adaptation plans and decentralization policies

Builds stronger and more transparent government financial systems through PBCRGs

Enables community participation in local development planning, implementation and monitoring

Prioritizes needs of women and youths, so climate finance benefits those needing it most

Contributes to climate-related SDGs and local economic development, particularly in the green economy, stimulating job creation as well as micro, small and medium enterprises

Helps countries earn accreditation to access international climate funds

Strengthens climate change adaptation monitoring and reporting

LoCAL by the numbers

LoCAL Donors

This online publication was produced with the financial support of the European Union. Its contents are the sole responsibility of UNCDF-LoCAL and do not necessarily reflect the views of its donors. The designations employed and the presentation of material on any maps herein do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations or UNCDF concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries.

LoCAL Partners

LoCAL Board

LoCAL Board Observers