Enhancing the Local Adaptive Climate Living Facility in Cambodia

The United Nations Capital Development Fund (UNCDF) provides investment and technical support to the public and private sectors, operating primarily in Least Developed Countries, or countries that exhibit the lowest indicators of socioeconomic development. In 2011, UNCDF launched the Local Adaptive Climate Living Facility (LoCAL) to promote climate change-resilient communities and economies by increasing local-level financing for climate change adaptation. UNCDF engaged a Capstone team to investigate opportunities for expanding the LoCAL model in order to support revenue-generating projects and catalyze private sector investment. Integrating these aspects into LoCAL is key to ensuring long-term financial sustainability of sub-national climate adaptation efforts. The team analyzed opportunities for enhancing LoCAL through a literature review and field visit to Cambodia. There, the team interviewed government officials, community beneficiaries, and other development actors including UN agencies, NGOs, investors, and social enterprises. The team prepared recommendations to build on the UNCDF LoCAL model, with a focus on Cambodia’s Takeo province.