We all agree, the alarms have been sounded, it cannot be business as usual. Disasters don’t wait for procedures, so we need to be able to trigger finance mechanisms such as LoCAL to channel finance where it is needed."
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:
LoCAL is an internationally recognized country- based mechanism that channels climate finance to local government authorities in developing countries.
LoCAL is
LoCAL & ISO 14093: a global standard for financing local adaptation to climate change
ISO 14093 was developed using the methodology and experiences of the United Nations Capital Development Fund (UNCDF) and countries that are implementing the Local Climate Adaptive Living Facility (LoCAL).
ISO 14093 offers an internationally recognized country-based mechanism to increase local government access to climate change adaptation finance.
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 38 countries with the potential to reach more than half a billion people.
Over 30 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
III: 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