Decentralised Climate Finance Project

The Decentralised Climate Finance project is a 5 year project aiming at facilitating investments in improving responses to climate change across 15 test districts (Monduli, Ngorongoro, Longido, Kondoa, Manyoni, Bahi, Mpwapwa, Kiteto, Same, Simanjiro, Kilwa, Siha, Mbulu, Iramba and Pangani) in mainland Tanzania and 3 districts in Zanzibar (Mcheweni, Unguja Kaskazini, Unguja Kusini). The project is funded by UKAID, with technical support from the United Nations Capital Development Fund (UNCDF) and the International Institute for Environment and Development (IIED).

The President’s Office – Regional and Local Government (PO-RALG) has a mandate to manage the Decentralised Climate Finance Project in collaboration with Hakikazi Catalyst and the Tanzania Natural Resources Forum. Using the “Devolution by Decentralisation” framework, funds will be channelled effectively to local governments in a manner, which contributes to good governance and accountability. PO-RALG will use the continuous learning and evidence generated from the project experience to facilitate dialogue at local, national and international level. The Program will facilitate this process through capacity building with the PO-RALG, creating pilot funding programs, and conducting monitoring and evaluation activities. Intended goals can be summarised as follows:

  • Establishing a Performance-based Climate Resilience Grant (PBCRG) (in collaboration with the UNCDF “Local Climate Adaptive Living” (LoCAL) mechanism) system in Tanzania, which will be operational for additional funding in the future.
  • Establishing devolved, district climate finance and planning mechanisms in 15 district councils in mainland Tanzania to finance community prioritised investments in public goods that build climate resilience.
  • Ensuring that investments that build climate resilience are effectively and efficiently implemented and managed by the districts, and that their performance is transparently assessed as part of the grant mechanism.
  • Building the capacity of PO-RALG to develop the necessary competencies to scale-up devolved climate finance in support of community-driven adaptation across Tanzania.
  • Generate evidence and learning on the effectiveness of devolved climate finance investments to improve community resilience, differentiated by gender that can be used to inform policy.

Through pilot of the Performance Based Climate Resilient Grants, continuous learning will generate evidence to support decision making for delivery of devolved climate finance and resilience building activities nation-wide. The Government of Tanzania will be able to decide whether to further extend the approach across Tanzania.