Enabling climate finance to the local level

LIFE-AR commits LDCs to channel at least 70% of climate finance to support local level action by 2030. This commitment is one of five Offers made by LDCs as they seek to take the lead in developing a more effective and ambitious climate response.

LIFE-AR countries are designing new, or strengthening existing delivery mechanisms to channel climate funds to local communities. This includes the governance, planning and financial systems to enable climate funds to reach the local level to finance community-prioritised climate action — all in a way that aligns with the LDC Offers.

A critical part of these delivery mechanisms is the governance arrangements for the flow and allocation of money at the local level. This includes how planning and decisions are made and by who. These delivery mechanisms are being designed or strengthened by countries through a cross-government and whole of society approach.

To be consistent with the LDC Offers and the LIFE-AR principles, investments in adaptation and resilience must prioritise those experiencing climate impacts and with contextual knowledge. This includes families, communities and local public and private institutions in LDCs.

Directing climate finance to the local level in a way that moves away from ‘Business As Usual’ requires the international community to shift away from short-term, project by project and/or national level-focused support. Instead it must focus on flexible, predictable and longer-term finance and support. This represents one of the LDC Asks.