ISO 14093:2022 Mechanism for financing local adaptation to climate change — Performance-based climate resilience grants — Requirements and guidelines sets an approach and methodology for a country-based mechanism to channel climate finance to subnational authorities to support climate change adaptation and to increase local resilience thereby contributing to the achievement of the goals of the 2015 Paris Agreement of the United Nations Framework Convention on Climate Change (UNFCCC) and the UN Sustainable Development Goals (SDGs). The country-based mechanism uses performance-based climate resilience grants (PBCRGs) which ensure programming and verification of climate change expenditures at the local level, offering strong incentives for performance improvements in enhanced resilience.
The standard specifies requirements and provides guidelines and is applicable to organizations such as:
- national and subnational authorities;
- donors;
- companies;
- financial institutions.
It also applies to international organizations involved in implementing a country-based mechanism for channelling climate finance to subnational authorities to support climate change adaptation and resilience.
Table of Contents
| Introduction |
| 1 Scope |
| 2 Normative references |
| 3 Terms, definitions and abbreviated terms |
| 3.1 Terms and definitions |
| 3.2 Abbreviated terms |
| 4 Financing and mainstreaming climate change adaptation at the local level |
| 5 General description of the mechanism |
| 5.1 Overview |
| 5.2 Localizing adaptation action |
| 5.3 Good governance and public financial management |
| 6 Designing a national system for local adaptation financing |
| 6.1 General |
| 6.2 Scoping analysis |
| 6.3 Assessing conditions for a successful launch — Key points and principles for consideration |
| 7 Designing the PBCRG system |
| 7.1 General |
| 7.2 Minimum conditions and performance metrics |
| 7.3 Size of the grants and allocation formula |
| 7.4 Menu of eligible adaptation investments |
| 7.5 Institutional arrangements |
| 7.6 Flow of funds |
| 7.7 Capacity building and institutional strengthening |
| 7.8 Selection of (pilot) subnational authorities |
| 7.9 Outlining the rationale for the initiative — Output and outcomes |
| 7.10 Country design report |
| 8 Implementation and institutional arrangements |
| 8.1 General |
| 8.2 Conducting/reviewing climate risks, vulnerability and adaptation assessments |
| 8.3 Integrating adaptation into local development planning and budgeting |
| 8.4 Selecting and implementing adaptation investments |
| 8.5 Appraising subnational authorities’ performance |
| 8.6 Capacity building |
| 9 Evaluation of LoCAL |
| Annex A LoCAL country case studies |
| Annex B Sample outcome indicators for adaptation investments |
| Annex C Sample output indicators |
| Annex D Categories of minimum conditions and performance metrics |
| Annex E Example of basic allocation |
| Annex F Types of local adaptation actions |
| Annex G Sample investment menu |
Applying ISO 14093
The main steps in applying a mechanism for financing local adaptation to climate change in conformity with ISO 14093 are as follows.
Establish the Context
Understand the local climate change impacts and vulnerabilities, identify the adaptation needs, and determine the stakeholders involved in the process.
Identify and Assess Risks
Conduct a comprehensive risk assessment to identify the potential risks associated with climate change impacts. This step involves analyzing current and future vulnerabilities, assessing the potential costs of inaction, and evaluating the effectiveness of various adaptation options.
Develop Adaptation Strategies
- Based on the risk assessment, develop adaptation strategies that align with the specific needs and priorities of the local community.
- Consider both short-term and long-term strategies that address multiple sectors, such as water management, agriculture, infrastructure, etc.
Cost Estimation
- Estimate the financial requirements for implementing the identified adaptation strategies. This step involves determining the costs associated with planning, implementing, and monitoring the adaptation measures.
- Use ISO 14093 guidelines to ensure comprehensive cost estimation.
Identify Financing Sources
- Identify potential financing sources for implementing the adaptation strategies. This can include both public and private sources such as government funding, international climate funds, grants, loans, public-private partnerships, etc.
- Consider the availability, accessibility, and suitability of each financing source.
Develop a Financing Mechanism
- Design a financing mechanism that aligns with ISO 14093 requirements. This mechanism should ensure transparency, accountability, and efficiency in financial management.
- Consider the specific needs and capacities of the local community while designing the mechanism.
Implement the Mechanism
- Put the financing mechanism into action by mobilizing the identified financing sources and allocating funds to the identified adaptation strategies.
- Monitor the progress of implementation and ensure effective financial management throughout the process.
Evaluate and Improve
- Evaluate the effectiveness of the financing mechanism and adaptation strategies periodically.
- Monitor the outcomes, measure the impact, and identify areas of improvement.
- Incorporate the lessons learned into future adaptation planning and financing processes.
In conclusion…
It is important to note that ISO 14093 provides guidance for climate change adaptation, but it is not a requirement for conformity. The steps mentioned above are based on ISO 14093 principles and can be tailored to the specific context and requirements of the local community.
ISO 14093 can be purchased from the ISO.org website.
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