[{"bbox": [93, 152, 1140, 259], "category": "Text", "text": "implementation of these activities successfully elsewhere, with respect to the first two components. They have also been working closely and have very good collaborations with the different Government departments and bodies involved in this sector. Furthermore, the proposed projects will be implemented using existing government processes so as to ensure coherence and sustainability."}, {"bbox": [93, 270, 1140, 404], "category": "Text", "text": "**Component 1 – Local level** – The Local Climate Adaptive Living (LoCAL) Facility has evolved into a standard, internationally recognized country-based mechanism to channel climate finance to local governments in least developed countries (LDCs). LoCAL-Uganda builds on the lessons learned from previous experiences with performance-based grants and the LG Performance Assessments being implemented in Uganda since late 1990’s. Some of the key lessons from the global expansion which will inform the LoCAL-Uganda include the following:"}, {"bbox": [93, 410, 1140, 490], "category": "List-item", "text": "* ensure **strong political anchorage**. Since Inception, LoCAL works closely with ministries and agencies dealing with climate change, decentralization and finance to ensure effective coordination and buy-in from key central level stakeholders involved in LoCAL deployment and institutionalization process."}, {"bbox": [93, 496, 1140, 600], "category": "List-item", "text": "* Climate risk and vulnerability assessments should **incorporate local-level indicators**. This is an important component in ensuring effective subnational adaptation via climate risk-informed planning and budgeting at the local level, as gaps exist in terms of production, use and dissemination of climate data at the sub-national level."}, {"bbox": [93, 608, 1140, 716], "category": "List-item", "text": "* Effective **involvement of communities** enhances ownership of resilience building interventions. LoCAL learned from the experience in Nepal and Niger, where local governments have been pursuing community contracting schemes to construct local infrastructure and rehabilitate ecosystems and provided short-term job opportunities especially for youth, women and other vulnerable groups."}, {"bbox": [93, 722, 372, 748], "category": "Section-header", "text": "## Component 2 – National level"}, {"bbox": [93, 753, 1140, 860], "category": "Text", "text": "Given the level of reforms and processes that need to be adjusted at national level for Uganda to be able to mobilise more climate financing, **political commitment at the highest level** and **across government departments (coordination)** is critical for the operationalization of a national climate financing outfit. A shared understanding within government that the role and purpose of the establishment is important."}, {"bbox": [93, 866, 1140, 920], "category": "Text", "text": "Considering and **mobilising national domestic sources of finance since the beginning** is important for longer-term sustainability, thus avoiding the over-emphasis on external sources of financing."}, {"bbox": [93, 925, 1140, 1059], "category": "Text", "text": "Furthermore, **linkages with the private sector**, including other forms of finance beyond grants (i.e., debt and equity), are key considerations from the start to draw in the private sector and leverage public finance. When operating on a national scale, especially in new project areas (green), in a development context, the role of technical assistance funding is important, not only initially but also continually, to ensure constant development of project pipelines."}, {"bbox": [93, 1065, 375, 1091], "category": "Section-header", "text": "## Component 3 – Private Sector"}, {"bbox": [93, 1096, 1140, 1257], "category": "Text", "text": "The European Union in Uganda has extensive experience in implementing access to finance for MSMEs programmes. One of those programmes, the Uganda Green Enterprise Finance Accelerator (UGEFA) targets exactly green MSMEs, whilst the other facilities focus more on the agribusiness sector. Nonetheless, the proposed intervention of support to accessing climate finance by Ugandan MSMEs goes a step further by also looking at the local banks' financing side through blending with a development financing institution's funds. Some of the lessons learned from the existing interventions which will be applied to the proposed one are:"}, {"bbox": [131, 1263, 1140, 1316], "category": "List-item", "text": "* Enough TA is foreseen both for the MSMEs, but also for the local banks to make sure that two categories better understand each other;"}, {"bbox": [131, 1319, 1140, 1372], "category": "List-item", "text": "* Enough TA is foreseen for the banks to develop their climate strategies and integrate them in their internal processes;"}, {"bbox": [131, 1374, 1140, 1423], "category": "List-item", "text": "* Follow-up of MSMEs is ensured post-investment to make sure that they are able to absorb it and make best use of it."}, {"bbox": [1027, 1680, 1144, 1705], "category": "Page-footer", "text": "Page 13 of 26"}]