SIG and EU sign Financing Agreement for EUR 6.3 million Climate Resilience Financing Mechanism

Minister for National Planning and Development Coordination, Hon. Rexon Ramofafia has signed a grant Financing Agreement with the European Union (EU) for the EUR 6.3 million (SBD58.1m) Local Climate Adaptive Living Facility (LoCAL) Climate Resilience Financing Mechanism in the Solomon Islands.

The LoCAL Climate Resilience Financing Mechanism project is designed to help provincial governments implement climate change adaptation activities.  The grant provides budget support to increase climate resilience of local communities in targeted provincial governments in Solomon Islands.

The total EU contribution is EUR 6 million. This action is co-financed in joint co-financing by United Nations Capital Development Fund (UNCDF) for an amount EUR 300,000.

It is geared towards increase provincial governments access to climate finance to implement climate change adaptation investments in the Solomon Islands and improve national systems for effective delivery of climate finance at local level in the Solomon Islands.

When signing the Financing Agreement on Friday 30 June 2023, Hon. Ramofafia thanked the European Union for supporting this very important need in addressing climate change and to ensure a risk-informed and climate-resilient Solomon Islands. 

Signing on behalf of the European Union was the European Commission’s Director for Middle East, Asia and Pacific Directorate-General for International Partnerships, Mr. Peteris Ustubs. Mr Ustubs signed the Financing Agreement on Wednesday 31^st May 2023, in Brussels.

The LoCAL project will be delivered through the United Nations Capital Development Fund (UNCDF). The UNCDF was selected to manage the implementation of the project based on its leading role on climate finance, proven experience on LoCAL methodology, track record of successful management of large programmes, and an existing presence in Solomon Islands.

The LoCAL grant has three priority areas. These are; (1) Climate Action and Environmental Sustainability, (2) Inclusive and Sustainable Economic Development and (3) Fundamental Values, Human Development, Peace and Security.

LoCAL will apply the Provincial Capacity Development Fund (PCDF) mechanism and empower the provincial governments to perform their roles through developing and funding adaptation and climate related disaster risk reduction strategies and plans, including climate induced displacement, and climate change adaptation infrastructure and services.

Beyond supporting Provincial Governments to increase access to climate change financing, LoCAL will also support them access to technical expertise on climate change adaptation and disaster risk reduction, in particular climate induced displacement, gender responsive approach to support the implementation of climate change adaptation projects funded through Performance-Based Climate Resilience Grants and to strengthen the entire project cycle from planning, execution to actual monitoring. – 𝙈𝙉𝙋𝘿𝘾 𝙋𝙧𝙚𝙨𝙨