As the dust settles over Glasgow, where country representatives from across the world gathered for two weeks of negotiations at COP26, we look beyond the headlines to see what the agreement means for many Small Island Developing States, developing and least developed countries and their capacity to respond to the climate crisis. And, we take a look at the next steps for LoCAL and the 27 countries implementing or designing LoCAL adaptation actions.

COP26 was always going to be an important Conference of the Parties. For the first time in Glasgow the five-year Nationally Determined Contributions (NDCs) agreed at Paris were revisited, marking a key chance to advance action on emissions and strive to keep the global commitment to limit warming to 1.5 degrees celsius alive. To this end, the signing of the Glasgow Climate Pact is the main political outcome from COP26, requesting governments to revisit their NDCs before the end of next year and includes commitments to phase down coal, a first for any COP decision.

As low carbon emitters with some of the least industrialised economies on the planet, the LDCs, developing nations, small island developing states and most African nations, were just as concerned with the discussion around climate finance, adaptation and loss and damage. Indeed, according to Pearnel Charles Jr, Minister of Housing, Urban Renewal, Environment and Climate Change in Jamaica, funding for mitigation, adaptation and loss and damage are inextricably linked.

“If you do not meet the mitigation commitments, you make it harder for adaptation. If you don’t put the money towards adaptation, you make it even harder to deal with loss and damage – it’s all connected,” said Mr Charles Jr.

So what are the key outcomes that matter for the LDCs, SIDs, African and developing nations across the world that are on the frontline of climate change, but have the most limited resources to adapt to its negative impacts?

Climate finance and adaptation

A recurring topic and point of much dismay for many LDCs and developing countries has been the failure of rich nations to meet their US $100 bn a year in funding to help developing nations to pay for mitigation and adaptation measures. Those funds were promised by 2020, and even with much regret and concern voiced by the developed nations, that target had still not been met as COP26 got underway at end of October.

This COP, developed nations were asked, and agreed, to at least double their support for adaptation compared to levels in 2019. In value terms, that takes adaptation funds up to US$ 40bn per year. This commitment is viewed by many as one of the more significant positive outcomes from COP26 for the most climate-vulnerable and resource-limited nations.

“Although this will not provide all of the funding needed by poorer countries, the fact that developed countries agreed to double their collective funds for adaptation is a major improvement,” Martina Donlon, Climate Communications Lead at the United Nations in a recent interview, adding that this outcome would be “especially benefit least developed countries and small island” States.

It is important to note that total climate change adaptation costs for developing countries could be as much as US $3.8 trillion, according to the UNFCCC.

Loss and Damage

Countries that are calling for payments to cope with the fall out of climate change have secured an advancement this COP, with an agreement to start a dialogue about funding a new organisation. That organisation will be charged with providing technical assistance to vulnerable countries that are struggling with the impacts of climate change, though this does not go as far as developing countries would have liked.

A call for a new fund to pay for loss and damage claims did not make the final agreement. Guinea and several island nations - including the Marshall Islands, Fiji, Antigua and Barbuda – expressed their disappointment at the pushback on the damages fund. Nonetheless, the loss and damage are now squarely on any future COP agenda and will sure to be an area of much discussion at COP27 in the Egyptian Red Sea resort town of Sharm El Sheikh.

Article 6 and additional pledges

A technical but decisive component of the Paris Agreement, Article 6, establishes a framework for the voluntary international cooperation of countries to reduce emissions and meet their nationally determined contributions (NDCs). That framework, or rulebook, was formally agreed in Glasgow. Proposals to charge a transaction fee on internationally-transferred mitigation outcomes – and thereby guarantee adaptation resources – did not make it to the final agreement. However, voluntary pledges were encouraged to the Adaptation Fund, which received some US$ 356 million in promised additional funds.

Also at COP26, donors pledged US $413 million to the Least Developed Countries Fund, hosted by the Global Environment Facility. The GEF is the only fund that exclusively targets the climate resilience needs of least developed countries.

LoCAL and COP26

The collective efforts of LoCAL countries in the run-up and during COP26 resulted in several significant advances.

At COP26, there was a strong engagement from LoCAL countries, including at ministerial level, to politically elevate the LoCAL mechanism during COP negotiations, in line with the 8th Board Decision of May 2021 and subsequent LoCAL Ministerial Declaration, currently signed by 15 high level officials and ministers from LoCAL countries.

Also at COP26, LoCAL was officially recognized by the LDC Group at the UNFCCC as one of the financing mechanism that supports implementation and achievement of the LDC 2050 Vision.

LoCAL and COP27

As implementation of the Glasgow Climate Pact begins and we look ahead to COP27, the above efforts pave the way for further recognition of LoCAL as one of the ‘non market approaches’ under the Convention (article 6.8) for channelling funds to adaptation, capacity building and technical assistance for developing countries. That ambition is shared by LoCAL countries and could translate into additional flows of finance for locally led action in LoCAL countries.

LoCAL references in UNFCCC documentation

On the road to COP26, LoCAL and its performance-based climate resilience grant system were referenced in official UNFCCC documents that were ultimately endorsed by COP26.

• The UNFCCC NAP technical guidelines include the LoCAL approach as supplementary material for NAP implementation
• The UNFCCC Standing Committee on Finance 2021 refers to LoCAL (paragraph 304), as an example of an initiative supporting domestic national budget systems to target adaptation actions at the local level, while reinforcing transparency and reporting.
• The LDC group to the UNFCCC recognized LoCAL as a long-term initiative in support of LDC 2050 vision
• The Adaptation Committee of UNFCCC also referenced LoCAL in 2021 as an adaptation tool.
• Stocktaking meeting of the Least Developed Countries Expert Group approved by the 53th Subsidiary Body for Implementation session
• Progress in the process to formulate and implement national adaptation plans. Note by the Secretariat

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