Building on more than a decade of results across Africa, Asia and the Pacific, LoCAL+ introduces a new market finance window to complement performance-based climate grants, diversify financing sources and mobilize additional public and private investment for locally led climate adaptation at the subnational level.

The United Nations Capital Development Fund (UNCDF) today at COP31 officially launched LoCAL+, the next generation of its flagship Local Climate Adaptive Living Facility (LoCAL). With new capabilities to unlock private climate finance, LoCAL+ offers new solutions for scaling locally led climate adaptation and expanding access to investment finance at the subnational level.

Building on LoCAL facility’s established model of performance-based climate grants and support to local governments, LoCAL+ introduces a new market finance window aimed at mobilizing additional public and private capital for climate-resilient investments in municipalities and other subnational entities.

"With LoCAL+, we are combining this proven approach with UNCDF’s investment structuring and de-risking capabilities to unlock new sources of public and private capital and strengthen subnational financing systems." - Justine Audrain, LoCAL+ Global Manager at UNCDF

With LoCAL+, UNCDF seeks to address one of the persistent challenges in climate finance: while local governments and communities bear the brunt of climate change impacts, they often lack access to the resources, investment capacities and finance needed to respond and adapt.

“LoCAL has demonstrated that local governments can deliver meaningful climate adaptation results when equipped with the right resources and capacities. With LoCAL+, we are combining this proven approach with UNCDF’s investment structuring and de-risking capabilities to unlock new sources of public and private capital and strengthen subnational financing systems. Our ambition is to transform how local adaptation is financed by complementing performance-based grants with innovative financing solutions that can mobilize sustainable investment at scale,” said Justine Audrain, LoCAL+ Global Manager at UNCDF.

Representatives from implementing countries and donor partners attended the launch, where ministers and senior delegates from Cambodia, Liberia, Malawi, Nepal and Uganda volunteered to serve as LoCAL+ Champions, supporting efforts to expand financing and partnerships for locally led adaptation.

A proven model

Since 2014, UNCDF, through its LoCAL facility, has engaged with over 30 countries worldwide and is currently working with 19 countries, including 16 Least Developed Countries and three Small Island Developing States. To date, the facility has:

  • Mobilized more than US$ 330 million for climate adaptation;
  • Supported more than 400 local governments;
  • Enabled 2,500 climate adaptation investments; and
  • Reached more than 20 million people indirectly, based on the population of participating local governments.

Through performance-based climate grants, institutional strengthening and locally led planning, UNCDF’s LoCAL has helped communities invest in climate-resilient infrastructure, water management, agriculture and other essential services.

The facility is forecasting $27 million in climate finance delivery in 2026, representing a 25.5 percent increase over 2025 and the highest annual delivery for the facility to date. This achievement reflects LoCAL’s continued growth, strengthened delivery capacity as well as an increasing demand for finance for locally led climate adaptation.

Unlocking new financing for local adaptation

Despite growing climate finance commitments, local governments continue to face significant barriers to accessing them and therefore lack sufficient capital to fund their adaptation priorities and plans. Less than 17% of international adaptation finance between 2017 and 2021 went to projects with a specific focus on local communities, according to United Nations Environment Programme figures with some previous studies putting the figure at less than 10%. With so little of the scarce adaptation resources available flowing to the subnational level, this points to a demonstrable market-system gap.

“Local governments are at the forefront of responding to climate change. They understand the risks facing their communities and are best placed to identify and deliver the investments needed to build resilience." - Ben Kumumanya, Permanent Secretary, Ministry of Local Government, Uganda.

LoCAL+’s new market finance window, which complements LoCAL’s established performance-based grants, aims to help address these constraints by connecting local adaptation priorities in underserved markets with financing institutions and exploring catalytic financial instruments, including concessional financing, guarantees and other risk-sharing solutions.

Working with national governments, national development banks, financial institutions and investors, UNCDF aims to mobilize additional public and private capital for subnational climate investments.

“Local governments are at the forefront of responding to climate change. They understand the risks facing their communities and are best placed to identify and deliver the investments needed to build resilience. Through LoCAL, we have seen how predictable, performance-based climate finance can empower local governments to turn adaptation priorities into practical results,” said Ben Kumumanya, Permanent Secretary, Ministry of Local Government, Uganda.

“LoCAL+ is an important next step: by building on this proven approach and introducing new ways to mobilize finance, it offers an opportunity to expand the resources available for locally led adaptation and strengthen the resilience of communities across Uganda and beyond,” Mr Kumumanya added.

Scaling locally led climate investment

Through LoCAL+, UNCDF aims to work with participating countries and financing partners in underserved markets to strengthen subnational market readiness, develop and aggregate climate-resilient investment opportunities and deploy its derisking capabilities to mobilize additional resources.

UNCDF remains committed to building sustainable subnational financing systems capable of attracting and deploying climate investment at scale for communities most vulnerable to climate change.