This document establishes 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.

This document provides requirements and guidelines and is applicable to organizations such as national and subnational authorities, donors, companies, financial institutions and international organizations that are involved in implementing a country-based mechanism for channelling climate finance to subnational authorities to support climate change adaptation and resilience.

NOTE       Another mechanism for supporting local adaptation is by direct support at the local level by donors without any financial flows from national government.