The Embassy of Denmark in Kampala has committed $23.47 million to the UN Capital Development Fund (UNCDF) to support rural communities in Uganda in adapting to climate change. Over the next four years, the funds will strengthen local economies through UNCDF’s LoCAL+ program, which for the first time incorporates engagement with the private sector to unlock investment for locally led, green economic development. This builds on a previous four-year $14 million commitment from Denmark in 2022, which helped finance flood protection, climate-resilient agriculture, and infrastructure through local governments.
The new contribution pilots the LoCAL+ approach, establishing a framework to channel private sector capital into local adaptation initiatives. By creating pre-approved pathways for market-based finance, including blended finance and guarantees for green small and medium-sized enterprises, the program aims to complement public sector grants and scale climate resilience at the community level. The initiative aligns with Uganda’s Nationally Determined Contribution, National Adaptation Plan, and National Climate Finance Strategy, targeting climate-resilient investments that will benefit 5.3 million people across 32 districts, expand the number of supported districts from 14 to 32 by 2027, and scale cumulative local projects to over 250 by 2028.
Denmark’s support reflects a commitment to locally led solutions, strengthening institutions, communities, and private sector participation in climate adaptation. LoCAL+, first launched by UNCDF in 2011, has enabled hundreds of local governments across Africa, Asia, and the Pacific to implement performance-based climate resilience grants. With this new funding, LoCAL+ will significantly increase grant sizes and expand its scope, positioning the program as the primary vehicle for channeling climate finance to Uganda’s local governments while creating durable and impactful infrastructure for resilient communities.
