Financing local responses to poverty, climate and nature
Only US$1 in every US$10 committed from global climate funds between 2003 and 2016 was for local-level climate action. Too often, donors and global funds make decisions far away from communities and provide climate finance through layers of intermediaries — missing vital local experience and insights. The investment that does get through can be of inconsistent quality and goes to short-term projects with limited legacy in terms of capabilities. This briefing outlines IIED’s vision for a reimagined climate finance landscape based on IIED’s Money Where it Matters framework. The framework aims to get more money to the households, cooperatives, federations, social movements and local governments best placed to absorb and disburse high-quality and high-quantity finance. Through local action this finance can support societies and ecosystems to thrive; here we set out how donors, global funds and intermediaries can help make this happen.