Local Climate Adaptive Living Facility (LoCAL)

Many local governments are responsible for sectors that deal with the practicalities of climate change adaptation – investing in and maintaining basic infrastructure, enforcing zoning laws, and managing disaster risk. In many developing countries, local governments lack the fiscal space to invest in ‘climate-proofing’ existing infrastructure or to undertake other forward-looking investments that help build resilience. Most resources come earmarked from central government for recurring expenditures, leaving little for capital investment. LoCAL is the UNCDF facility for investment in local level climate resilience. The facility channels global adaptation finance to local governments - who are at the frontline of dealing with the effect of climate change - and enables them to invest in building local resilience. The method for doing so is innovative: The LoCAL Facility connects to existing national intergovernmental fiscal transfer systems and supplements capital grants to local governments with performance-based climate adaptation funding. LoCAL thus provides a fast and effective means to channel adaptation finance to where it is most needed, while at the same time ensuring ownership, accountability and results. For LoCAL, UNCDF partners with the EU, Liechtenstein, Luxembourg, GEF and SIDA. At present, UNCDF is implementing LoCAL in the Solomon Islands but is currently planning to expand to other SIDS. The total cost of the project is 40 million USD, of which 12 million is funded.