Community leaders, development partners and government representatives recently gathered in northern Uganda to celebrate a major milestone in locally led climate adaptation as 10 new districts prepare to receive their first allocations of climate finance through the United Nations Capital Development Fund's (UNCDF) LoCAL+ facility.

With new support from the Embassy of Denmark in Uganda, the districts will receive Performance-Based Climate Resilience Grants (PBCRG) to finance adaptation investments identified and prioritized by local communities.

The visit to Nebbi and Amuru Districts highlighted how the LoCAL approach, which inspired the ISO 14093 a global standard for financing local adaptation to climate change, is translating international climate finance into climate-risk informed locally-led adaptation investments in communities where it is most needed.

One of the investments planned is a solar-powered piped water system in Pawel Parish, Opara Sub-county. The project will extend a five-kilometer water network, serving approximately 1,300 people, including patients and pregnant women seeking care at the local health facility.

For Dr. Lucy Akun, head of the local health facility, the investment will address a longstanding challenge.

"Previously, every jerry-can of water used had to be collected by bucket-load and hand carried over a 500-metre round trip to meet the needs of the health centre," she said. "It was exhausting and dangerous, as carriers had to cross busy roads with their loads."

The improved water infrastructure is expected to significantly strengthen access to safe water for patients and pregnant women who visit the health centre for maternal health services, while reducing the burden on staff and community members.

The investment is one of 62 interventions planned for 2026/2027 in Uganda under the PBCRG. It forms part of a broader effort to strengthen Uganda’s climate finance architecture under the Climate Finance Strategy and the Decentralization framework.

Earlier this year, the Embassy of Denmark committed USD23.47 million to UNCDF to continue supporting communities to adapt to the impacts of climate change. This work builds on financial support from Belgium (2023), the European Union (2024) and Ireland (2025) to accelerate the scale-up of adaptation investments across the country.

"Climate resilience is won or lost at the local level," said H.E. Signe Winding Albjerg, Ambassador of Denmark to Uganda. "Our DKK 150 million commitment to Uganda is a testament to our belief in locally led solutions. Through the LoCAL+ programme, Denmark is proud to stand with Uganda to strengthen the very institutions and communities that are redefining what climate adaptation looks like. It is partnership in action, delivering practical, life-changing solutions exactly where they matter most, at the climate change frontlines."

UNCDF's LoCAL mechanism channels climate finance directly to local governments through Performance-Based Climate Resilience Grants, helping districts plan, implement and monitor adaptation investments while strengthening local systems and capacities. Under LoCAL+, UNCDF is expanding the model through an additional market finance window designed to attract new sources of financing and support domestic private-sector actors in contributing to a whole-of-society approach to building climate-resilient local economies.

Speaking during the visit, Olawale Oyekunle Ajayi, Regional Investment Specialist for East and Southern Africa at UNCDF, highlighted the role of donor partnerships in scaling local adaptation efforts.

"These investments show how local governments can turn international climate finance into tangible results for communities," he said. "In 2023, Belgium provided critical seed funding. This was followed by the European Union, Ireland and now Denmark."

“Ultimately, I am confident that Uganda is well placed to demonstrate how the right systems can help attract more public and private climate finance for evidence-based, locally-led adaptation," said H.E Mags Gaynor, the Irish ambassador to Uganda.

Assistant Commissioner, Monitoring and Evaluation, Office of the Prime Minister, Nathan Otutu also encouraged district local governments to closely monitor completed investments and assess community satisfaction to help inform future adaptation planning.

With support from development partners, UNCDF has delivered $3.9 million in adaptation grants over the past three years through LoCAL in Uganda and has launched a fourth investment cycle worth $4.8 million. For communities such as Pawel, these investments demonstrate how climate finance can deliver tangible improvements when decisions are driven by local priorities.