Developing countries in the Global South are increasingly affected by climate change, with social, economic and geographical factors exacerbating their risk and vulnerability. The World Bank warns that, if no action is taken towards to address this, 130 million people will be pushed in extreme poverty by 2030 (World Bank, 2023). The Global South recognises the risks and is committed to addressing the problems, as reflected in international platforms and conferences. However, to meet the set climate goals, these developing countries require need $USD 2.4 trillion per year by 2030 (LSE Grantham Institute, 2022). Towards this, climate commitments backed by robust climate finance support which is connected with both adaptation initiatives and local needs are thus critical, the need of the hour.  

Role and importance of adaptation financing 

Adaptation financing aims to help vulnerable communities and nations build resilience to climate change impacts, safeguarding economies, ecosystems, and livelihoods. Scaling up adaptation finance requires an inclusive and holistic approach that unites financial institutions, the private sector and local communities. Under the South African presidency, the G20 Finance Ministers and Central Bank Governors have endorsed the Sustainable Finance Woking Group. This group aims to advance sustainable (mitigation and adaptation) finance to ensure resilience and a just and equitable transition by integrating multi-stakeholder partnerships, innovative funding mechanisms and cooperation among financial entities. However, existing systems struggle to initiate such collaborations, which limits the effectiveness and impact of adaptation efforts.  

Decentralised action plans: The Local Adaptation Plan for Action (LAPA) 

The Local Adaptation Plan for Action (LAPA) was introduced in 2011 as a community-driven framework designed to focus on region-specific climate risks and localise adaptation efforts. – The Local Adaptation Plan for Action (LAPA)It aims to empower communities and local government bodies by allowing them to assess their climate vulnerabilities and identifying appropriate adaptation strategies which that prioritises actions that addresses their unique needs and challenges.  

The Kailali District in Nepal provides a compelling case study of LAPA in action. Over 1 000 local community members, including women and Indigenous groups, collaborated with local government bodies, non-governmental organisations (NGOs) and international funders to create an action plan on flood and landslide risks. The project is backed by the Climate Investment Fund’s Pilot Program for Climate Resilience and the Asian Development Bank. Its evidence-based, locally owned and homegrown leadership has created tangible outcomes, such as the adoption of submergence rice farming by 200 farmers, commercial vegetable cultivation by 40 farmers, and beekeeping practices in Tikapur and Pabera.  

Scaling LAPA across the Global South 

In order to scale up, LAPA should be linked to larger financial mechanisms such as vertical climate funds, multilateral development banks and private financiers. Alignment with these funding sources helps to attract substantial resources, particularly where local capital is limited. LAPA’s participatory approach generates great local acceptability and makes projects more attractive to financiers, increasing the possibility of mobilising both international and local financing. This ties into the ability of Global South countries to leverage a wider pool of financing, driving more effective, locally led climate adaptation initiatives. To allow this, here are some call-of-action points stakeholders should consider in order to integrate adaptation finance frameworks through LAPA: 

• Integrate local plans into national policies: As is evident in models such as Nepal’s National Framework for LAPAs, which offers a structured pathway to embed local adaptation plans into national policy processes, state and national policymakers play a pivotal role in scaling locally led adaptation efforts across sectors and regions. Establishing monitoring and evaluation systems to assess LAPA effectiveness and creating knowledge-sharing platforms for key stakeholders strengthen the integration of local plans into national policies. 

• Enhance local awareness through education: By leveraging their grassroots and community engagement, state- and national-level NGOs should organise workshops, offer training and run targeted campaigns to educate local populations about climate risks and adaptation measures. 

• Strengthen capacity and enable private sector engagement: G20 Finance Ministers, in collaboration with international organisations, should streamline the process of accessing climate finance and make it easier for local entities to access funding for adaptation projects. Simultaneously, with the G20’s emphasis on innovating climate financing mechanisms (such as public–private partnerships), it is important to create an enabling environment to attract private sector investment to unlock resources and ensure the scalability of initiatives such as LAPA. 

To meet the growing climate challenges faced by developing countries in the Global South, it is crucial to scale localised and collaborative strategies. LAPA’s success in Nepal demonstrates the potential to scale this initiative across Asia, Africa, Latin America and elsewhere to transition towards a more resilience, equitable and sustainable future.