This initiative amounts to over SBD 130 million (USD 15.6 million) with SBD 75 million (USD 9 million) contributed by New Zealand and SBD 55 million (USD 6.59 m) from the European Union.

LoCAL will deploy performance-based payments to finance locally-led climate adaptation projects identified by communities and provincial governments, ensuring that resources are directed to where they are needed most.

“By leveraging our unique capital mandate, UNCDF can deploy performance-based payments to Small Island Developing States like Solomon Islands, which are among the most vulnerable to the impacts of climate change. Our goal is to unlock financing that empowers local communities and governments to take the lead in climate adaptation,” said Maria Perdomo, UNCDF Regional Manager for the Asia Pacific, speaking in advance of the event.

Recognized internationally as a benchmark for climate finance delivery, UNCDF’s Local Climate Adaptive Living Facility currently operates in 38 countries across Africa, Asia, the Caribbean, and the Pacific, positively impacting over 18 million lives worldwide.

“The European Union is delighted to partner with the Government of Solomon Islands, New Zealand, and UNCDF to ensure communities in Solomon Islands are equipped to respond effectively to climate change,” stated Ambassador of the European Union to the Pacific, Her Excellency Barbara Plinkert.

Delegation of the European Union to the Pacific

Building upon the existing Provincial Capacity Development Fund (PCDF) associated with the Provincial Governance Strengthening Programme (PGSP), the UNCDF will support provincial governments in securing vital climate funding for projects aimed at enhancing resilience. These initiatives will encompass improvements in water infrastructure, the promotion of climate-smart agricultural practices, coastal protection measures, and programs designed to raise community awareness. Collectively, these efforts are intended to strengthen local adaptive capacity.

“New Zealand is committed to supporting Solomon Islands’ communities in their adaptation to climate change. We take pride in working closely with national and provincial governments, development partners, and ward communities in this critical effort,” said New Zealand Acting High Commissioner to Solomon Islands, Rebecca Williams.

“The Government of Solomon Islands is steadfast in its commitment to supporting local communities in tackling climate change challenges. By integrating this initiative with our existing PCDF, we aim to strengthen the capacity of provincial governments and implement effective projects that promote community resilience and prosperity,” said Dr. Derek Futaiasi, Permanent Secretary of the Ministry of Provincial Government and Institutional Strengthening (MPGIS).

The PCDF of the PGSP that is based at MPGIS has been implementing performance-based grants for the past 14 years.  This has delivered over 1,600 projects at a cost of approximately SBD325 million, creating over 11,000 jobs nationwide. The PCDF has strengthened accountability at the lower level, as illustrated in audit reports. Solomon Islands Government has been the largest contributor to PCDF, and the strengthening of the performance-based grant system in the country. The current Solomon Islands Government commitment to PCDF stands at SBD30 million per year.   

LoCAL will supplement financing to the PCDF, from the Government of Solomon Islands and others, to support climate change adaptation and resilience of local communities.  Resources will be directed through national systems, with projects delivered by the provincial governments, complemented with technical support from the government. The World Bank and UNDP Gov4Res are also key partners to the Government of Solomon Islands, working alongside UNCDF in strengthening the performance-based grant system in Solomon Islands.

END.