ISO 14093:2022

Overview

ISO 14093:2022 - Mechanism for financing local adaptation to climate change - establishes an internationally recognized country-based approach for channelling climate finance to subnational authorities. Based on the UNCDF LoCAL mechanism, ISO 14093:2022 defines a methodology for performance-based climate resilience grants (PBCRGs) that link funding to verified local adaptation actions. The standard supports countries in meeting the goals of the 2015 Paris Agreement and the UN Sustainable Development Goals (SDGs) by increasing local resilience and mainstreaming adaptation into local planning and budgeting.

Key technical topics and requirements

ISO 14093:2022 provides requirements and guidelines for designing and operating a PBCRG system. Core elements include:

• Design of a national PBCRG system: scoping analysis, alignment with national policy, and a country design report.
• Minimum conditions and performance metrics: principles for defining indicators and modalities for annual performance assessment.
• Grant sizing and allocation formula: approaches for determining grant amounts and distribution to subnational authorities.
• Menu of eligible adaptation investments: types of risk-informed local adaptation actions that grants can fund.
• Institutional arrangements and flow of funds: roles, fiduciary safeguards, public financial management and verification pathways.
• Monitoring, validation and verification: M&E, reporting, and verification processes to ensure transparency of adaptation expenditures.
• Capacity building and selection of pilot subnational authorities: strengthening local planning, budgeting and implementation capabilities.

The standard emphasizes performance incentives, programming and verification of climate expenditures, and integration with local development cycles.

Practical applications and who would use this standard

ISO 14093:2022 is practical for stakeholders involved in local climate adaptation finance:

• National and subnational governments designing systems to channel international climate finance to municipalities and districts.
• Donors and development partners structuring grants and performance-based financing instruments.
• International organizations and funds seeking standard methodologies for subnational adaptation funding.
• Financial institutions and companies supporting or investing in resilience projects at the local level.
• Implementing agencies and NGOs delivering capacity building, verification and monitoring support.

Use cases include establishing PBCRG pilots, mainstreaming adaptation into local budgets, and improving transparency and accountability of adaptation spending.

Related Standards

• ISO 14090 - Adaptation to climate change: principles, requirements and guidelines (aligned with ISO 14093:2022 for planning, implementation, M&E and reporting).

Keywords: ISO 14093:2022, performance-based climate resilience grants, PBCRG, LoCAL, local adaptation financing, climate finance, subnational authorities, climate change adaptation, Paris Agreement, SDGs.