Opinion | Unlocking Climate Action: Why Channeling Climate Finance for Local and Regional Adaptation Matters at COP29
With the UN Climate Change Conference (COP29) fast approaching, the spotlight is on a pivotal component of global climate action: finance. This year’s conference will shape how funds are mobilized to address pressing needs in mitigation, adaptation, and loss and damage. Over 20 subnational governments – including states, provinces, and regions – and members of Regions4 will gather in Baku, Azerbaijan, advocating for localized climate finance as a crucial means to effectively reach the most vulnerable communities and drive actions tailored to the specific needs and realities of impacted territories.
Adaptation: An Increasing Imperative
The recently launched UN 2024 Synthesis Report on Nationally Determined Contributions (NDCs) underscores a critical reality: countries are far from achieving the deep cuts in greenhouse gas emissions mandated by science.
Currently, we are on course for a temperature increase of 2.6-3.1°C over the course of this century, alerts the UNEP’s Emissions Gap Report 2024. To limit global warming to 1.5°C this century and avert the most severe climate impacts, achieving a 42% reduction in emissions by 2030 and a 57% reduction by 2035 is essential. Every fraction of a degree counts as climate disasters continue to escalate.
As we face the reality of falling significantly short on emission reduction targets, the urgency for adaptation becomes increasingly critical. Adapting to climate change cannot be an afterthought, and efforts must be substantially intensified to effectively address the rising impacts we are experiencing throughout the world. This week’s record rainfall and devastating floods in Valencia, Spain, highlight the urgent need to prioritize life-saving measures as climate change fuels these increasingly frequent events worldwide.
The next round of Nationally Determined Contributions (NDCs) “NDCs 3.0” – are due in early 2025 and will detail countries’ intended climate actions through 2035. They must reflect a dramatic increase in climate action and ambition.
New NDCs should also specify adaptation priorities and investments to protect critical economic sectors and communities from climate impacts, aligning with National Adaptation Plan processes.
Transformative Financing: From Global to Local
In this context, CoP29 must be an enabling CoP that delivers concrete and ambitious outcomes on climate finance, particularly addressing the needs of developing countries. The New Collective Quantified Goal (NCQG) that CoP29 seeks to fairly agree should incorporate specific sub-goals that ensure climate finance effectively supports mitigation, adaptation, and addresses Loss and Damage.
Historically, adaptation has been underfunded, undermining the Paris Agreement’s commitment to balance mitigation and adaptation efforts. The UNEP Adaptation Gap Report 2023 highlighted an annual adaptation finance gap of $194–366 billion, with only 10% reaching local levels.
As climate impacts continue to escalate, CoP29 represents a critical opportunity to increase financial support to adaptation and secure the essential resources to close this gap. We cannot afford to repeat the failures associated with the previous $100 billion a year pledge. Moreover, the type of financial support provided should shift from debt-related instruments to grants and non-debt options to ensure sustainable financing, particularly for the Global South.
Subnational governments – states, regions, and provinces – are actively developing their own financial mechanisms and innovative taxation systems such as payments for environmental services, green budgeting practices, carbon credits and markets, green bonds, among others, to address climate change impacts in their territories and should be recognized as vital partners in global finance solutions. However, many regions from the Global South still require additional support and direct access to these resources.
At CoP29, subnational governments will advocate for robust climate financial mechanisms within the NCQG framework. These should enable local and subnational governments to access climate finance opportunities (including private financing) and technical assistance quickly and efficiently, empowering them to implement effective climate resilience actions.
Enabling finance to reach subnational governments unlocks their potential to develop locally driven solutions, ensuring investments align with each community’s specific needs and natural and cultural realities. This fosters local ownership, targeted solutions for vulnerable populations, and encourages local development, including the creation of green jobs to leave no one behind.
Subnational Governments leading adaptation planning and action
Many countries, particularly in the Global South, are committed to enhancing adaptive capacity and reducing vulnerability to climate impacts. This was reflected at COP28 with the establishment of the UAE Framework for Global Resilience, setting the goal for all countries to have National Adaptation Plans (NAPs) by 2030, and to act on priority targets including water, food and agriculture, ecosystems, infrastructure, health, livelihoods, and cultural heritage.
Non-party stakeholders, including local communities, states and regions, and the private sector, are playing a vital role in driving adaptation efforts. This is why the Marrakesh Partnership and the Climate Champions Race to Resilience have developed The Sharm El Sheikh Adaptation Agenda, which aims for 10,000 cities and 100 regional governments to have evidence-based, actionable adaptation plans by 2030.
As the level of government closer to the territories, subnational governments are essential for facilitating locally led adaptation, with effective participation of farmers, Indigenous Peoples, and local communities, a pre-requisite for effective climate action. They are indispensable actors in achieving a just and resilient transition to net-zero, reaching the Sustainable Development Goals (SDGs), and addressing the tri-planetary crisis of climate change, pollution and biodiversity loss.
Subnational governments drive climate action within each territory, addressing both rural and urban realities through their own policies, regulations, and investment in infrastructure and nature-based solutions. The RegionsAdapt initiative exemplifies this commitment, with subnational governments assessing risks and vulnerabilities, developing adaptation plans, implementing targeted actions in priority sectors, and reporting annually on their progress. In 2023, out of 109 regions reporting to the CDP states and regions survey, 59, 6% have a climate action plan or strategy in place to address adaptation.
As COP29 approaches, it is crucial to engage subnational governments during the reviews of the Nationally Determined contributions (NDCs) and National Adaptation plans (NAPs), building on the launch at COP28 of the Coalition for High Ambition Multilevel Partnerships (CHAMP) supported by over 74 national governments.
At CoP29, subnational governments will advocate for their policies and actions to be appropriately reflected in the formulation, updating, financing, implementation and monitoring of NDCs, NAPs, Long-Term Strategies (LTS) and related actions ahead of 2025.
Last year at COP28, negotiators reached a consensus around the Global Goal for Adaptation, which intends to improve global resilience to increasing floods, droughts, heatwaves and sea level rise. Thanks to our advocacy, the importance or recognizing locally led adaptation has been included.
This year at COP29 Azerbaijan, the work is on agreeing to indicators for the Global Goal. Work around indicators is a highly technical exercise, but we treasure what we measure and it is through this monitoring framework that we will be able to assess whether Governments are delivering on their promises. We are calling for subnational contributions on their progres on adaptation to be considered when reflecting global progress on adaptation.
Locally-led financial solutions
Subnational governments are on the frontlines of responding to climate disasters and risks, supporting their territories in emergency responses to floods, droughts, and other extreme weather events. This pivotal role was acknowledged at COP28 with the decision that the Loss and Damage Fund should enable direct access to resources to subnational entities.
The Scottish Government, currently Regions4 Presidency, was the first Global North government to commit to funding for Loss and Damage, through their Climate Justice Fund (CJF).
It is essential that subnational governments are included in the development and operationalization of the Loss and Damage Fund, leveraging their local knowledge and capacity to generate targeted actions.
Moreover, subnational governments are investing in nature and championing integrated solutions that address both climate change and biodiversity conservation. Catalonia’s Life Climark Initiative, for instance, channels local carbon tax revenue to fund nature and climate adaptation projects. In a landmark move at Biodiversity Cop16 in Colombia, the Government of Québec became the first subnational government to contribute to the Global Biodiversity Fund, the main financial avenue to achieving the global goals for nature. In Brazil, the Conexão Mata Atlantica project, involving the states of São Paulo, Rio de Janeiro, and Minas Gerais, provides farmers with revenue through Payment for Environmental Services, supporting climate and nature-positive actions.
Additionally, the governments of Lombardy and the Basque Country are integrating green budgeting practices to embed climate and environmental considerations into their financial policies. These and other innovative examples were also shared at the Regions4 Financing Resilience International Forum in Rio in June 2024, to underscore how investing in nature becomes our greatest ally in combating climate change and building resilience for future generations.
At COP29, subnational governments will urge Parties and climate finance institutions to scale up finance for nature, and support innovative finance mechanisms driven by regions to bridge the gap between climate action and biodiversity conservation.
The road to delivery: a global mobilization on a scale and pace never seen before, starting right now
Regions4 will be present at COP29, with its delegation of over 20 regions and as part of the Local Governments and Municipal Authorities (LGMA) constituency will be an active player in sharing key messages, contributing to the negotiations and showcase stories of impact and transformation.
In the lead-up to COP29, it is essential that we recognize and strengthen the role of subnational governments as key actors in climate adaptation, mitigation, and resilience action.
By enabling these entities to access climate finance directly, we not only drive progress toward climate goals but also ensure that communities on the frontlines of climate change have the resources they need to protect their people and ecosystems. This approach supports inclusive, sustainable development and brings us closer to achieving the shared vision of a just, resilient future for all.
Opinion by Natalia Uribe, Regions4 Secretary General and Heloise Chicou, Regions4 Climate Action and Resilience Program Manager. The views expressed in this commentary belong to the authors only.
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