The Local Adaptation Fund (AF) is a blended finance tool boosting local climate adaptation in the agriculture and tourism sectors in Guadeloupe. It supports vulnerable groups and offers a replicable model for other climate change-exposed territories.
The innovation addresses climate change impacts on agriculture in Guadeloupe (droughts, floods, heat stress, soil erosion etc.) by supporting projects on water management, climate-resilient crops, agroforestry, and smart farming technologies. Its objective is to solve the funding gap for local, tailored adaptation solutions.
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The Local Adaptation Fund (AF) is an innovative climate finance mechanism tailored to Guadeloupe, a French outermost region. It is the first local fund in France fully dedicated to climate adaptation. AF specifically targets the agriculture and tourism sectors, two pillars of the island’s economy that are highly vulnerable to climate change. It addresses local adaptation needs through a regionally grounded, participatory model that ensures strong local ownership. By combining technical expertise, inclusive governance, and flexible financing tools, AF enhances both community and economic resilience. The fund acts as a catalyst, enabling local actors, small businesses, and public entities to access resources and implement impactful adaptation pilot projects. It also strengthens public-private collaboration, fosters long-term adaptation planning, and builds local capacity. Through its integrated approach, visibility, and strong engagement with stakeholders, AF has become a pioneering and replicable model for inclusive, locally driven climate finance, offering valuable lessons for other territories facing similar challenges.
Developed specifically for Guadeloupe, the AF was designed to address the region’s most pressing climate risks – particularly in the agriculture and tourism sectors – through a participatory, territory-based approach.
The AF was developed through an inclusive process involving over 30 interviews, surveys, and co-design workshops with local stakeholders, including public agencies, researchers, financial institutions, and community actors. This process led to the creation of a Technical and Financial Committee made up of 22 partners (15 technical, 7 financial), ensuring broad expertise and legitimacy for project evaluation and selection.
The fund is structured around local priorities identified in a baseline vulnerability study. It finances pilot projects that demonstrate scalable solutions to challenges such as water scarcity, land degradation, and climate-resilient agriculture. Six initial projects were selected, representing a total investment of €1.24 million, including €989,204 mobilized through the AF and co-financing from public and private organisations.
Chosen after a thorough feasibility study, the AF’s governance is designed to be flexible and adaptable to different financing strategies. Funders can choose between two modes of involvement: they may either delegate a funding envelope to the coordinating entity, which then oversees fund allocation and monitoring; or they can retain full control over their investment, independently assessing and financing the projects of their choice within the AF framework. This dual-option model allows partners to engage according to their internal procedures and capacities, while still contributing to a coherent, territory-wide adaptation strategy.
A dedicated coordination team supports project holders throughout the process, from proposal writing to implementation, ensuring accessibility and capacity-building. Public outreach events, like open days, have reinforced local visibility and trust in the mechanism.
By aligning institutional innovation with on-the-ground action, AF not only enables concrete adaptation projects but also strengthens long-term governance and financing frameworks. Its success in Guadeloupe positions it as a replicable model for locally driven, inclusive climate finance across other territories.
The AF faces several challenges, particularly in terms of governance and private sector involvement. One major limitation stems from the flexibility and hybrid nature of the governance structure. With multiple funders, each managing its own processes for financing, project approval, and contract signing, delays are inevitable at every stage – from project selection to fund disbursement. A more efficient approach could have been the creation of an autonomous fund with a shared pool of resources, where each organization directly contributes to a common fund. In this model, the coordinating entity would manage the allocation of funds, sign a single contract for each project, and oversee implementation, significantly simplifying the process for beneficiaries. However, due to institutional constraints and time limitations, this model could not be implemented during the pilot phase. It remains a potential solution for future iterations of the fund.
In addition, engaging the private sector, particularly in agriculture, has proven difficult. Many banks are reluctant to invest in adaptation projects in agriculture, as they perceive the sector as high-risk and not easily “bankable.” This hesitance limits the private sector’s involvement and reduces the overall pool of available financing for adaptation efforts.
These challenges underline the need for more streamlined governance and stronger private sector engagement to increase the effectiveness and efficiency of adaptation finance.
The Local Adaptation Fund (AF) is a blended finance tool boosting local climate adaptation in the agriculture and tourism sectors in Guadeloupe. It supports vulnerable groups and offers a replicable model for other climate change-exposed territories.
The innovation addresses climate change impacts on agriculture in Guadeloupe (droughts, floods, heat stress, soil erosion etc.) by supporting projects on water management, climate-resilient crops, agroforestry, and smart farming technologies. Its objective is to solve the funding gap for local, tailored adaptation solutions.
The business plan for this innovation has been evaluated by The Funding Company and it is considered to be ready for investment.
The main components of the system have been tested separately, and an initial integration exercise has been conducted.
The Local Adaptation Fund (AF) is an innovative climate finance mechanism tailored to Guadeloupe, a French outermost region. It is the first local fund in France fully dedicated to climate adaptation. AF specifically targets the agriculture and tourism sectors, two pillars of the island’s economy that are highly vulnerable to climate change. It addresses local adaptation needs through a regionally grounded, participatory model that ensures strong local ownership. By combining technical expertise, inclusive governance, and flexible financing tools, AF enhances both community and economic resilience. The fund acts as a catalyst, enabling local actors, small businesses, and public entities to access resources and implement impactful adaptation pilot projects. It also strengthens public-private collaboration, fosters long-term adaptation planning, and builds local capacity. Through its integrated approach, visibility, and strong engagement with stakeholders, AF has become a pioneering and replicable model for inclusive, locally driven climate finance, offering valuable lessons for other territories facing similar challenges.
Developed specifically for Guadeloupe, the AF was designed to address the region’s most pressing climate risks – particularly in the agriculture and tourism sectors – through a participatory, territory-based approach.
The AF was developed through an inclusive process involving over 30 interviews, surveys, and co-design workshops with local stakeholders, including public agencies, researchers, financial institutions, and community actors. This process led to the creation of a Technical and Financial Committee made up of 22 partners (15 technical, 7 financial), ensuring broad expertise and legitimacy for project evaluation and selection.
The fund is structured around local priorities identified in a baseline vulnerability study. It finances pilot projects that demonstrate scalable solutions to challenges such as water scarcity, land degradation, and climate-resilient agriculture. Six initial projects were selected, representing a total investment of €1.24 million, including €989,204 mobilized through the AF and co-financing from public and private organisations.
Chosen after a thorough feasibility study, the AF’s governance is designed to be flexible and adaptable to different financing strategies. Funders can choose between two modes of involvement: they may either delegate a funding envelope to the coordinating entity, which then oversees fund allocation and monitoring; or they can retain full control over their investment, independently assessing and financing the projects of their choice within the AF framework. This dual-option model allows partners to engage according to their internal procedures and capacities, while still contributing to a coherent, territory-wide adaptation strategy.
A dedicated coordination team supports project holders throughout the process, from proposal writing to implementation, ensuring accessibility and capacity-building. Public outreach events, like open days, have reinforced local visibility and trust in the mechanism.
By aligning institutional innovation with on-the-ground action, AF not only enables concrete adaptation projects but also strengthens long-term governance and financing frameworks. Its success in Guadeloupe positions it as a replicable model for locally driven, inclusive climate finance across other territories.
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