Multiple regions

Scaling Up Locally Led Climate Action [C157]

The Locally Led Climate Action (LLCA) initiative supports the development of nationwide systems and capacity to crowd-in, absorb and manage climate finance at national and local levels in Tanzania, Rwanda, Nepal and Bangladesh, and preparatory work in additional 3-5 countries.

Multi-regional

Scaling Up Locally Led Climate Action Ref. NDF C157

NDF grant: EUR 10 million

Project Period: June 2024-2029

Implementing Agency: The World Bank

Objective

The most vulnerable countries are facing rapidly increasing negative effects of climate change which exacerbate their already complex challenges towards sustainable and inclusive socio-economic development. Less than 10% of climate financing reaches the local level and local communities are often left out of climate action planning and implementation processes. With this proposal, NDF will provide the catalytic funding, technical support and learning needed to establish a World Bank led Program that will prepare national scale systems of Locally Led Climate Action.

This initiative aims to improve livelihood and climate change resilience at the local level, through catalysed investments in country systems delivering locally led climate resilience actions; strengthening of work relations and financial flows between national and local level; promoting local and gender balanced involvement and leadership in climate resilience and local development.

Outcomes

The short-term outcome is national scale systems of LLCA that are ready for implementation and resource mobilisation with the medium-term outcome to have national scale systems underpinning the:

  • Strengthening of the capacity of local and national governments to absorb and manage climate finance and collaborate in joint decision-making with their citizens. 

  • Building the vertical linkages between local governments and national entities for improved MRV on climate investments.  

  • Delivering effective, inclusive climate action investments to the local level; and, 

  • Strengthening capacity of countries to crowd in other sources of climate finance.   

The LLCA approach will provide the initial grant investment to adapting the model and providing proof of concept in specific contexts and will be key to catalyse action and investment in national scale models. This engagement will provide the needed support enabling the already approached countries to prepare for the initiation and roll out of sustainable, national scale systems of devolved climate finance and locally led climate action.

Financing

The LLCA has a total budget of EUR 30 million for the five-year period. NDF will contribute EUR 10 million as a grant.

NDF Contact

Program Manager, Ole Stubdrup (ole.stubdrup@ndf.int)

Photo: Chris Morgan

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