Using climate finance to advance climate justice: the politics and practice of channelling resources to the local level

Abstract

Adaptation finance is primarily allocated to multilateral entities and national governments, rather than local organisations. This means that some of the same social, political and economic processes that create and sustain inequalities within a country will be the same processes that determine how adaptation finance is used. Using an urban lens, we consider the obstacles currently faced by local governments and local civil society groups in accessing adaptation finance, and show that these are a function of systemic power imbalances between levels of government, and between government and vulnerable communities. We argue that even relatively small amounts of adaptation finance could have a catalytic effect on the capacities and impacts of local organisations, contributing to greater levels of both distributive and procedural justice. We analyse different financial intermediaries and planning systems that could be used to make disbursements from multilateral climate funds fairer and more effective. This could potentially create political opportunities both to respond to direct climate threats and to address underlying drivers of vulnerability, such as marginalisation and exclusion. In this way, channelling adaptation finance to the local level could deliver more just processes and outcomes. Policy insights1. More multilateral climate funds should establish direct access modalities, and introduce "fit-for-purpose" accreditation procedures and approval processes. Those that have already established such enabling frameworks should prioritise providing readiness support to local organisations, and incentivise state and citizen collaboration in adaptation projects. 2. National governments should consider clearly enshrining the rights and responsibilities of local authorities in National Adaptation Plans, and help them to collect the information, build the capacities and acquire the resources needed to plan and implement adaptation measures. National governments should further encourage local authorities to adopt participatory planning, budgeting, monitoring and evaluation procedures to encourage citizen participation. 3. Local civil society groups should identify or establish collective entities that can seek accreditation with multilateral funds and then disburse money to their members. Collaboration between groups can facilitate up-scaling through replication (particularly where peer-to-peer learning is embedded in the network) and reduce the transaction costs associated with myriad small projects.

Indicators to Evaluate the Institutional Effectiveness of National Climate Financing Mechanisms

“…However, global best practices do not always equate to effective practices, especially in achieving country level development outcomes (Booth, 2012). Also, ensuring that finance for climate change actions is easily accessible by the most vulnerable people at the local level, where the brunt of climate change is most pronounced, is very important for effective climate change governance (Colenbrander et al, 2018).…”

Role of Intermediaries in Shaping Climate Finance in Developing Countries—Lessons from the Green Climate Fund

“…An inadvertent outcome of the GCF's focus on country ownership has been a surge of government entities as national AEs, as climate change is a public-led challenge in many developing countries. The engagement of government AEs in disbursing funding is likely to perpetuate existing local social, economic, and political structural challenges to the GCF-funded climate projects [40].…”

Climate Resilience in Urban Informal Settlements: Towards a Transformative Upgrading Agenda

“…the Green Climate Fund (GCF) and Global Environment Facility (GEF)). Colenbrander et al ( 2018 :902) argue that ‘ adaptation finance is primarily allocated to multilateral entities and national governments, rather than local organizations. This means that the social, political and economic processes that create and sustain inequalities within a country will be the same processes that determine how adaptation finance is used’.…”