As climate change intensifies, the need to scale investments in social and economic resilience becomes more urgent, particularly in the Global South, where livelihoods, ecosystems and economies face growing threats and impacts. While financial institutions (FIs) play a crucial role in funding climate adaptation projects, a significant gap persists between the FIs driving these investments and the local communities that bear the brunt of climate-related impacts. Local voices hold essential knowledge about their communities' challenges, needs and adaptation solutions, yet they are often excluded from decisions on funds allocation and use.
On 25 February 2025, SouthSouthNorth (SSN) and UN Environment Finance Initiative (UNEP FI), in collaboration with the British International Investment (BII) and International Institute for Environment and Development (IIED), convened key stakeholders, including financial institutions, development finance organisations, local community representatives and development practitioners at the "Bridging the Gap: Integrating Local Voices into Adaptation Investments" workshop. The workshop aimed to address this gap by exploring practical ways to promote the integration of the realities and priorities of local communities into financial decision-making.
This event took place in the context of growing momentum for just and resilient development pathways, with platforms like the 5th Finance in Common Summit (FiCS) advocating for more inclusive climate financing. Through a series of collaborative discussions, panel sessions and meaningful networking, the event facilitated crucial dialogues on how to create a more inclusive, impactful and locally responsive finance ecosystem.
“Are we truly listening to the people most affected by climate change? Are we willing to shift power and resources to those who have the most at stake?”
- Jamiatu Sesay (Federation of Urban and Rural Poor)
Financial institutions often face challenges in understanding the lived experiences of local communities that may be direct or indirect stakeholders in financing decisions. This can result in adaptation strategies that don't fully address the unique needs of those most affected by climate change.
Several key challenges were identified at the workshop, including:
"Local organisations are already adapting and we need to collaborate with them at scale to ensure that adaptation finance reaches those most affected."
- Dr Shehnaaz Moosa (SouthSouthNorth)
Several participants emphasised the importance of elevating local voices above merely ethical or moral considerations; they are crucial to the sustainability and resilience of investments. Local communities, including women, youth and marginalised groups, possess invaluable knowledge and insights about their environments, vulnerabilities and needs. When integrated into decision-making, this knowledge can help to design more effective, context-specific and resilient strategies.
“The time for business as usual is over, adaptation needs to be inclusive. Are we truly engaging with those most affected?"
A key takeaway from the workshop was the need for a shift from participation to authentic collaboration. The discussions emphasised that financial institutions investing in adaptation must not only listen to local voices but also ensure these voices are heard. Additionally, they should empower local communities to take ownership and have greater agency in resilience-building efforts. Participants recognised that community-driven solutions were more likely to succeed because they are rooted in local knowledge and understanding, as well as existing processes and governance systems.
Solutions like co-creation of project visions, strengthening local capabilities, and investing in long-term partnerships between communities and financial institutions were identified as critical to scaling the integration of local voices in resilient investments.
Key practical solutions discussed included:
The workshop’s discussions and outputs are a clarion call for change in how adaptation finance is conceived, structured and distributed. The key message is clear: the integration of local voices into climate resilient investments is not just a nice-to-have—it is essential for ensuring that these investments are impactful, inclusive and sustainable. By increasing dialogue and working collaboratively, local actors and financial institutions can identify synergies and create investment decisions and solutions that account for the real-world challenges faced by vulnerable populations.
"Local voices are often lost in the response to climate change, but this is an opportunity to change that."
- Paul Smith (UNEP FI)
Moreover, the workshop highlighted the critical need for collaboration between public and private finance actors, local organisations and intermediary institutions. The idea of building longer-term, flexible partnerships between these diverse actors is key to creating a resilient, scalable and effective adaptation finance ecosystem.
The "Bridging the Gap" workshop successfully advanced the conversation on the importance of local voices in climate resilient investment. As the global climate finance landscape evolves, integrating local voices will not only improve the outcomes of these investments but will also ensure that the most vulnerable communities are no longer sidelined in the fight against climate change. Direct funding mechanisms must be developed to support grassroots organisations, simplifying compliance processes and making financial instruments more accessible. Two-way capability strengthening is essential, recognising indigenous knowledge while improving institutional adaptability. A co-created roadmap with accountability will help drive investment, integrating risk-sharing mechanisms and community-led monitoring. The road ahead is challenging, but the workshop has set the stage for meaningful progress towards a more inclusive and just climate resilience future.
© 2026 SouthSouthNorth
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