Local Governments and Climate Change III (LGCC-3)

Cambodia faces increasingly frequent and severe climate hazards, with its vulnerability to climate change exacerbated by its location, weak governance and heavy reliance on climate-sensitive activities like agriculture. These hazards could cost the country 10 per cent of GDP by 2050, significantly hindering its long-term growth potential and aspirations to become a higher-income country. The project’s main objective is to integrate climate change adaptation into local development planning and finance, supporting Cambodia’s national climate goals and Sustainable Development Goals (SDGs). It targets 25 particularly vulnerable districts across three provinces: Battambang, Pursat, and Preah Vihear, which suffer regular flooding and seasonal droughts, limited access to safe water, and high poverty rates. LGCC-3 is the culmination of experience with Cambodia’s Local Climate Adaptive Living Facility (LoCAL) approach and is built on the LoCAL performance-based climate resilience grants (PBCRG) mechanism. The project provides capacity-building and technical assistance for local authorities and communities and grants to fund priority adaptation projects. In close consultation with communities, local governments will plan, budget, and implement around 90 climate-resilient investments addressing their most pressing adaptation needs. By investing in capacity building and developing enhanced participation in local decision-making, communities across Cambodia will see enhanced climate risk-informed planning, implementation, and management, with monitoring and evaluation of local adaptation investments guiding future climate-resilient adaptation projects to match local needs. GCF Readiness and Project Preparation Facility (PPF) support was provided to develop the project.