1. Local Climate Adaptive Living Facility (LoCAL)

2. LDCs’ Local Governments & Resilience Underfunded Responsibilities Local governments worldwide have mandate and comparative advantage to strengthen resilience Often this is underfunded by central government, so they seek PPPs, issue bonds, take out loans... Yet small local governments in Least Developed Countries (LDC) do not share these funding possibilities And almost all climate finance in LDCs is still channeled through central government agencies Therefore LDCs, the most vulnerable, are not able to fully build resilience to climate change LoCAL is designed to enable LDCs to deal with this problem

4. Mainstreaming climate change adaptation into local government’s planning and budgeting systems Increasing awareness and response to climate change at local level Increasing the amount of finance available to local governments for climate change adaption Addressing the challenge of channeling climate change adaptation finance to local level in LDCs Mediating local level ‘s direct access to climate change adaptation finance

5. The PBCRGs (Performance based climate resilience grants as) Fiscal transfers to subnational level Financial top-ups Use of country systems Minimum conditions (access) Performance measures (annual assessments) Menu of investments (eligible measures)

7. UNCD F K EI W RI LoCAL Secretariat Regular Local Government planning, budgeting, financial management, procurement VAVA Investment Menu Vulnerability Assessment Central Governme nt GCF and global climate finance $ PBC RG IGFT 1 1 2 2 3 3 2 3 Annual Performanc e Assessment Local Government and Local Community working with partners on the ground (like PEI, BDC etc) Ban k PBC RL ISF PBC RB 3 3 Reporting Scoping mission UNCDF & LDC govt. Mou & LOA Annual resilience and climate monitoring (whole country) PE Iet c. 1 Globa l Policy Impac t 2 LD C Grants & Loans Resilience, adaptation, local fixed capital, local fiscal space

8. The Characteristics of LoCAL? 1.Owned by the Least Developed Countries that sit on its board 2.Managed on behalf of these countries by UNCDF (UN Capital Development Fund) – a UN agency dedicated to LDCs. 3.Channels climate finance through national systems directly to local governments – no parallel mechanisms or additional overheads. 4.Annual audit to measure the resilience built (according to pre-defined baseline). Performance based rewards and sanctions. 5.Robust methodology and peer pressure from board members keeps system honest. LoCAL secretariat carries out monitoring and pooled reporting to climate funds 6.This enables LDC member states to use LoCAL as a form of mediated and verified direct access to climate finance for local resilience that demonstrates immediate, verifiable and concrete results

9. Pilot Phase: as a part of the JSP, covering two dzongkhags and two gewogs over two FYs (2011/12 and 2012/13) – Budget: USD 500,000 approx. (UNCDF support) Bridging Phase: as a part of the new Local Governance Sustainable Development Program (LGSPD), covering six gewogs over two FYs (2014/15 and 2015/16): USD 500,000 (UNCDF support) Scale-up Phase: continuation as a part of the LGSDP, extending to additional 10 gewogs, thus covering a total of 16-20 Gewogs in 2016/17; 30 Gewogs in 2017/18; 50 Gewogs in 2018/19 and 100 Gewogs by the end of 2019/20. Scale-up Phase: Experience from Bhutan

10. Pilot –Phase I (2011/12-2012/13) Learning-Phase II (2014/15-2015/16) Scale-up Phase (2016/17) Experiencia de Bhutan

11. Experiences from Bhutan Almost 100 projects has been delivered by LGs In terms of expenditure, improvement of transport infrastructure accounted for 45%, followed by improvement of water supply systems (22%) and renewable/ clean energy use (11%).

12. 12 LoCAL introduced/tested in 11 LDCs & 57 Local Governments Tuvalu (phase I), Solomon Islands and Vanuatu (preparation) Bhutan and Cambodia (phase III) Bangladesh,Nepal and Lao PDR (phase II) Benin (phase II), Ghana Mali, Mozambique and Niger (phase I), Lesotho, Uganda and Tanzania (preparation)

13. Key partners and stakeholders 13 At local level, local governments and populations are both partners and beneficiaries At national level, LoCAL partners with ministries in charge of decentralization, climate change, planning/finance and development partners –Ex. Belgian cooperation in Mozambique, SIDA in Cambodia, EU and DANIDA in Bangladesh, UNDP GEF in Lao PDR At global level, LoCAL is financed by EU (GCCA), SIDA, Liechtenstein and UNCDF is partnerships with the World Resource Institute (WRI), the Korean Environment Institute (KEI)) and the UNDP-UNEP Poverty-Environment Initiative

14. Thank you http://www.local-uncdf.org/

15. http://www.local-uncdf.org/project-list-2014.html