The European Union and the Government of Belgium have announced a series of funding commitments worth some euros 25 million for community-level adaptation in some of the world’s most climate vulnerable and resource-strapped nations. The funds, announced at COP28 in the United Arab Emirates today, are to be dispersed through the Local Climate Adaptive Living Facility, originally designed by the UN Capital Development Fund.

Carla Montesi, Director the European Commission's Directorate-General for International Partnerships confirmed over 8 million euros for Mozambique, 6 million for Solomon Islands, 4 million for Uganda and 2 million for Tanzania. While Luc Jacobs the Special Envoy for Climate and Environment from the Government of Belgium confirmed 4 million euros in funding for adaptation actions in Tanzania with LoCAL.

The funding commitments together represent an additional euros 25 million for adaptation in communities on the climate change frontline. The new commitments, for the first time, push the total amount mobilised for adaptation in communities by the LoCAL Facility to over US$ 200 million, noting that year-on-year accounting is compiled in US dollars.

Though launched globally in 2014, a strong uptick in demand from countries seeking to finance their adaptation actions with LoCAL combined with increased donor support has enabled UNCDF to double the total resources mobilised for adaptation in communities from US$ 100M to US$ 200M since the January 2021 Climate Adaptation Summit. The LoCAL Board comprised of member countries and partners aims to shepherd LoCAL to becoming a US$ 500M facility by 2027.

The European Union has supported the LoCAL Facility since its first pilots in Bhutan and Cambodia over 10 years ago, contributing some euros 88 million in total, making it LoCAL’s largest single donor.

Carla Montesi at COP28 during a Ministerial Declaration signing ceremony on the 5th Dec in Dubai, UAE

Ms Montesi delivered the EU’s funding commitment at an event at COP28, where ministers from some of the world’s most vulnerable countries to the impacts of climate change hosted an event to call for simplified and consistent access to climate finance with the LoCAL Facility. Some seven ministers and key donors gathered to present a 25 signature declaration at COP28, which hosts the UAE are eager to promote as the ‘finance COP’ following a series of funding commitments for a new loss and damage fund in the COPs opening days.

Attending the same event, Mr Luc Jacobs said that “the impacts of climate change are most acutely experienced at the local level and this is where we are seeing LoCAL is able to deliver results.” Belgium is supporting communities to adapt to climate change with LoCAL in Mozambique, Tanzania and Uganda and has to date contributed euro 20 million for adaptation projects with LoCAL, making Belgium the third largest donor to LoCAL after the EU and Sweden.

“We are proud to count ourselves a trusted partner for communities hit hardest by the impacts of climate change,” added Mr Jacobs.

Ambassador Mr Luc Jacobs, Special Envoy for Climate and Environment, Belgium, delivers a speech on the 5th December at the 25 signature Ministerial declaration @ COP28

Uganda’s Environment Minister Beatrice Atim Anywar and Dr. Selemani Saidi Jafo, Minister of State (Union and Environment) The United Republic of Tanzania attended the event and welcomed the additional funds. Alioune Ndoye, Minister of Environment, Sustainable Development and Ecological Transition, Senegal, also attended today’s event where he became the 25th Minister to sign a declaration calling for simplified and consistent climate finance with LoCAL.

Other attending ministers and signatories to the declaration included: Roger Baro, Minister of Environment, Water and Sanitation from Burkina Faso; Rohey John-Manjang, Minister of Environment, Climate Change and Natural Resources, The Gambia; Prof Wilson K Tarpeh, Executive Director of the Liberia Environmental Protection Agency, and Adelino Afonso Fernandes Rosa Cardoso, Minister of Infrastructure, Natural Resources and Environment from Sao Tome and Principe.

“To date, LoCAL has [now] mobilized… US$ 200 million for adaptation,” said Hon Cardoso, who represents one of a small number of highly vulnerable small island developing states attending COP28.

High level Representatives from LoCAL countries, EU and Belgium - Group photo at the 25-Minister Declaration signing ceremony on the 5th December at COP28

“These funds have been used to provide climate-resilient sources of drinking water to many populations or improve their preparedness for climate-related disasters, such as cyclones, floods or drought,” said Hon. Cardoso. “These funds have proven invaluable to the communities and communities that received them,” he added.

The UN Capital Development Fund designed and piloted the LoCAL Facility in Bhutan and Cambodia over ten years ago. Since then, LoCAL has expanded to meet country demand for locally led adaptation funding initiatives that meet the needs of communities, and is engaged with 38 LDCs, Small Island Developing States and African countries. Funds are dispersed in the form of performance based climate resilience grants and the model and country implementation experience provide the basis for ISO 14093:22.

This year’s COP kicked off with a series of commitments for the newly set up loss and damage fund, agreed at COP27 in Sharm El Sheikh. While those funding commitments have been widely welcomed, some climate vulnerable nations have expressed caution, wanting to assurances that all new commitments are debt-free and do not come in the form of loans.

“The impacts of climate change are most acutely experienced at the local level – that’s why UNCDF designed the LoCAL mechanism, which channels climate finance to local governments for locally led adaptation,” said David Jackson, Director Local Transformative Finance, UNCDF.

“LoCAL works, and countries know that it works and they want to see more funds channelled through LoCAL because it gets funds where they are most acutely needed in a transparent and standardised way.”

David Jackson, Director of UNCDF's Local Transformative Finance Division delivering a speech at COP28

Background

LoCAL, Financing Locally Led Adaptation

The impact of climate change is acutely experienced at the local level—where we work, go to school and live our lives. In the world’s most climate-vulnerable nations, adaptation is critical and, all too often, under-resourced. The United Nations Capital Development Fund (UNCDF) designed the Local Climate Adaptive Living Facility (LoCAL) in 2011 as a way to channel finance to local government authorities and their communities to cover the additional costs of mitigating and adapting to the impacts of climate change—thereby minimizing and addressing potential loss and damage. Managed by UNCDF, the Facility supports LoCAL country-owned mechanisms for climate finance delivery that have realized adaptation solutions for more than 16 million people around the world. More than 30 countries across Africa, Asia, the Caribbean and the Pacific have engaged with LoCAL to deliver resilience-building solutions for climate-vulnerable populations. The LoCAL approach provides the basis for international standard ISO 14093:2022, which contributes to Sustainable Development Goals 1, 11 and 13.

UNCDF

The United Nations Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 46 Least Developed Countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

UNCDF builds partnerships with other UN organizations, as well as private and public sector actors, to achieve greater impact in development; specifically by unlocking additional resources and strengthening financing mechanisms and systems contributing to transformation pathways, focusing on such development themes as green economy, digitalization, urbanization, inclusive economies, gender equality and women’s economic empowerment.

A hybrid development finance institution and development agency, UNCDF uses a combination of capital instruments (deployment, financial & business advisory and catalysation) and development instruments (technical assistance, capacity development, policy advice, advocacy, thought leadership, and market analysis and scoping) which are applied across five priority areas (inclusive digital economies, local transformative finance, women’s economic empowerment, climate, energy & biodiversity finance, and sustainable food systems finance).

Find out more about LoCAL here

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