Lessons from piloting the decentralised climate finance programme, Tanzania
Climate finance is not reaching the local level at the speed and scale necessary to secure adaptation to the impacts of climate change for the most vulnerable. Tanzania’s climate change adaptation finance gap is particularly acute. Although it needs around US$500 million a year to deliver its national adaptation, development partners have only approved a total of US$150 million for disbursement in total since the early 2000s.
As climate impacts become increasingly severe, the challenge is to deliver adaptation investments, at scale, through a planning system that was not designed to respond to an environment in which climate risks bring increased unpredictability and variability to the environment. To address these challenges, the Tanzanian government, led by the President’s Office for Regional Administration and Local Government (PO-RALG) piloted the development of the Decentralised Climate Finance (DCF) mechanism. This mechanism works through a consortium of government and non-government institutions with the support of the UK government’s Department for International Development’s UKAid. The International Institute for Environment and Development and the United Nations Capital Development Fund (UNCDF) provided technical support.
This paper shares learning from the implementation of the Decentralised Climate Finance programme in Tanzania.