Steering adaptation finance toward locally led solutions

There is growing consensus that adaptation to climate change is most effective when the people closest to a problem are the ones developing the solutions. Whether it is villagers dealing with contaminated wells after flooding in Bangladesh or farmers coping with drought in Zambia, communities facing the realities of climate change in the Global South know best what they need.

In 2021, a series of eight principles for locally led adaptation were developed and widely endorsed to put more decision-making power and resources into local hands. But still, little money reaches the places it is needed most. In 2024, available funds fell short of needs in the Global South by an estimated USD187 to 359 billion (CAD262 to 502 billion) each year. In addition, the global funds that support adaptation are complex and many applicants struggle to propose projects that meet the requirements.

As noted by Mikko Ollikainen, head of the Adaptation Fund, “Environmental and social risks […] are often not detailed enough in proposals.” He added that many proponents also fail to recognize the need to have extensive stakeholder consultation to ensure that the project is shaped according to needs of the community. The Adaptation Fund provides climate finance to developing countries that are parties to the Kyoto Protocol and the Paris Agreement.

Ensuring adaptation finance reaches those most vulnerable to the impacts of climate change demands expertise in accessing funds, innovative approaches to tap new resources and inclusive processes that reflect local needs.  

Supporting a step change in access to finance

Launched in 2022, Step Change is a partnership between IDRC and the Dutch Ministry of Foreign Affairs that aims to strengthen the resilience of the world’s most climate-affected people and build a strong community of actors to drive locally led adaptation. 

Step Change’s largest investment is in the Southern-led Climate and Development Knowledge Network (CDKN), which helps put adaptation knowledge into action across Africa, Asia and Latin America. It convenes, mentors and fosters knowledge sharing among a wide range of public and private sector actors, from local to global levels.

In addition, another seven projects supported by Step Change are driving locally led adaptation across Africa, building the knowledge, momentum and new connections needed to make communities more resilient.

To date, Step Change partners have helped to mobilize over CAD20 million in climate finance, with the lion’s share coming through the Adaptation Fund. Its adoption of CDKN’s “co-ideation” approach to project development, pioneered by SouthSouthNorth — which brings funders, stakeholders and proponents together — contributed to project approvals totalling USD13.95 million (CAD19.51 million) in Peru, Honduras and Côte d’Ivoire. In 2024, in Latin America, CDKN partner Fundación Futuro Latinoamericano brokered collaboration among nine members of the Andean Water Funds Platform to develop a joint proposal that mobilized EUR400,000 (CAD652,000) in development funding from the Spanish government. These funds will strengthen regional cooperation to protect water resources in the face of climate change. 

Cameroon: Bridging funds for inclusive local adaptation

The reality for many African communities facing the impacts of climate change is that most adaptation funding doesn’t reach the local level — it flows toward national governments. In Cameroon, ICLEI Africa’s BRIDGE project is working to secure funding for vulnerable communities that are too often excluded from the adaptation project development process.

Through its coaching program, BRIDGE is building the expertise of Cameroon’s main source of funding for locally led adaptation — the Special Fund for Equipment and Intercommunal Intervention (FEICOM). BRIDGE has helped FEICOM develop its Climate Funding Window, improving how its calls for proposals are structured and assessed. A newly designed matrix is helping FEICOM rank proposed projects based on their financial viability, expected impacts and how they align with international funding opportunities to maximize their potential. An important consideration is how projects will strengthen gender and social inclusion. BRIDGE is also assisting FEICOM to apply for global and regional climate funds with a view to expand the resources that flow towards local adaptation. A recent memorandum of agreement between ICLEI Africa and FEICOM cements this working relationship and will help sustain the project’s impact long term.

To date, BRIDGE’s efforts, which also include strengthening capacities of intermediaries to develop strong project proposals, have helped to secure some CAD359,500 from FEICOM's new climate funding window for reforestation, improved cookstoves and resilient food systems in the Municipality of Gazawa. It is also widening access to information on available funding through a new interactive mapping tool that shows where adaptation finance is flowing, highlighting gaps and opportunities.

Ghana: Helping youth make the pitch

Ghana’s youth are its future, and as CDKN’s Climate Activists Programme shows, many young people have compelling ideas on how to tackle the climate crisis. To nurture their leadership, the program offers skill-building in climate activism and eco-entrepreneurship. Participants are recruited through open calls across Ghana.

Training covers climate-related risks alongside project management and business planning — including how to pitch an idea for funding. Even as climate change threatens the future for these youth, how they respond can increase their resilience. As one program advisor noted, "Climate change offers a unique chance for young people to take action and create employment opportunities for themselves." 

To date, the program has trained over 80 climate activists and incubated more than 20 local innovations. Trainees have mobilized some USD75,000 (CAD105,000) from a range of sources, including private sector funders.

One young activist is Ama Bless, founder of Protifai — a marketplace app that connects consumers with Ghanaian producers of high-quality, sustainably produced meat. Bless secured USD50,000 (CAD70,000) in seed funding from the Kosmos Energy Climate Innovation Challenge after her training in 2024. The funding will support more climate-resilient livestock practices and expand market access for women farmers, creating jobs while improving local food systems. 

South Sudan: Fostering household resilience through savings and loans

Over the past five years, flooding in Mundri West County in South Sudan has devastated homes and infrastructure and inundated farmers’ fields — the source of most local livelihoods. 

In 2025, with support from Youth Empowerment and Development Aid and the Humanitarian OpenStreetMap Team, community members in four villages took the first steps toward strengthening their resilience by forming village savings and loan associations. By pooling their savings to form a micro-credit facility, members will have access to small loans that they can invest in more climate-resilient farming to buffer against shocks. This is just one outcome of a small grant from CDKN, which launched a flexible open call for proposals in 2023. The grant supported an inclusive mapping exercise to identify the county’s most flood-prone locations and resources that community members can tap to prevent and cope with these risks. By including women, youth, people with disabilities, community leaders and the elderly, the effort aims to ensure that the most vulnerable households are part of the solution.

Insights on financing locally led adaptation

With support from Step Change, a growing suite of tools and approaches are helping communities in the Global South steer climate finance toward their own adaptation priorities. 

"Step Change is investing in long-term relationships and flexible approaches," said Georgina Cundill Kemp, senior program specialist at IDRC. “We think these ingredients are key to ensuring that communities, intermediaries and governments work together on bankable ideas that will foster local resilience.”