LocationsHow access to finance empowers communities to drive climate action in Asia-Pacific
Funding Change from the Ground Up
April 24, 2025
Across the Asia-Pacific, the gap between global climate pledges and local community needs is often described as the "last mile." While billions are committed at international summits, these funds rarely reach the villages where climate change poses an immediate economic and physical threat. To bridge this gap, the Climate Finance Network (CFN), supported by the UK Foreign, Commonwealth & Development Office (FCDO) CARA Programme and the Government of Sweden through Sida, is building a regional architecture that moves climate finance from high-level policy to sub-national impact and community empowerment.
How are we bridging the gap?
Across the region, local actors rarely have access to the funding required to lead climate action. Planning and budgeting for climate finance at the sub-national levels often miss the opportunity to empower those closest to the challenge.
By providing direct small grants to Civil Society Organizations (CSOs) in five countries—Indonesia, the Philippines, Nepal, Cambodia, and Sri Lanka—the CFN is helping shift that. These initiatives demonstrate that the most effective climate solutions are those that are locally designed, institutionally supported, and properly funded.
Nepal – The Impact of Landslides
The power of direct finance through CSOs
What ties these examples together is who is driving the change. Civil Society Organizations are not merely implementers; they are accountability actors ensuring decisions reflect real community priorities. Direct finance empowers CSOs to lead by:
Driving Localized Impact: CSOs co-design projects—such as slope stabilization or ecosystem restoration—tailored to specific cultural and geographic contexts, ensuring solutions are practical and immediate.
Building Collaborative Networks: Grants allow CSOs to form strategic partnerships with governments, academia, and the private sector. For example, in the Philippines and Indonesia, these collaborations weave grassroots initiatives into official government reforestation and planning efforts.
Shaping Lasting Policies: With adequate funding, CSOs move from "project workers" to "policy partners." By showcasing successful community models, they inspire national policy shifts that endure beyond political term limits.
Strengthening Accountability: As independent actors, CSOs track local budgets to ensure climate goals are met and that resources are managed transparently.
Indonesia – From Sand Mining to Climate Awareness
Case Studies: Where Direct Finance is Making an Impact
Cambodia: The Coalition for Partnership in Democratic Development, alongside STAR Kampuchea and the National School of Local Administration, is influencing national climate budgets. Through multi-stakeholder working groups, they ensure that sub-national governments receive the resources necessary to respond to local risks with full transparency.
Indonesia: Relung partnered with village governments to integrate climate adaptation into official village budget plans. This field-based planning process ensured that critical community needs, such as clean water and resilient income opportunities, were formally recognized and funded in local budgets.
Nepal: In Kispan, bioengineering techniques such as bamboo crib walls and slope-stabilizing plantations have secured landslide-prone areas. Led by PEEDA in partnership with local authorities, the initiative trained 28 residents and helped the municipality map high-risk zones, laying the foundation for permanent resilience.
Philippines: The Gerry Roxas Foundation is helping farmers, women, and youth protect forests while growing local businesses. Leveraging CFN grants, the federation secured further capacity-building support from Capiz State University and the DENR. This collaboration has strengthened the value chain for cocoa and coffee producers, building community-wide economic resilience.
Sri Lanka: Women-led small businesses in Kalpitiya are receiving targeted support to navigate climate risks. Led by the University of Colombo and supported by local banks and authorities, the project provides training on climate-smart finance and advocacy. This allows entrepreneurs to access the capital needed to invest in resilient technologies like solar drying systems.
Cambodia – Youth and Local Governance Engagement
Small grants, big impact
The impact of small grants extends far beyond their initial activities. This "seed funding" allows CSOs to unlock new streams of co-financing from public and private partners and demonstrate policy models that can be scaled nationally, fostering a multiplier effect.
What makes these initiatives endure is the system they help build. Success depends on:
Integrating CSOs into official government planning structures.
Fostering collaboration between academia, the private sector, and local leaders.
Combining technical support with financial literacy to ensure long-term scalability.
Philippines – Building Skills, Building Resilience
Driving Change from the Ground Up
The Climate Finance Network’s Grants Initiative proves that even modest investments can drive meaningful change when placed in the hands of those closest to the challenges. By aligning locally led solutions with global frameworks like the Paris Agreement and the Sustainable Development Goals (SDGs), these projects contribute to a just, climate-resilient future on a global scale.
This story is part of a series of initiatives supported by the UNDP Climate Finance Network (CFN), a flagship programme supporting Asia-Pacific countries to bridge the gap between climate goals and the investment needed to reach them. As a regional platform, CFN provides technical and policy support to integrate climate into public finance, mobilize private and innovative capital, and create the enabling environment required for lasting impact. Supported by the UK’s FCDO flagship CARA programme and Sweden (Sida), CFN ensures climate action is transparent, coordinated, and fully funded.
For more information on the CFN Grants: Cristina Gregorio (Regional Climate Finance Specialist)