News Summary

• Despite record pledges, less than one-tenth of climate finance explicitly targets local action.
• The ten nations most affected by climate change over two decades received under 2% of total flows.
• A financing gap of $5.2 trillion annually for micro, small, and medium enterprises in emerging markets highlights how systemic the barriers are.Fixing the problem may require rules that push capital closer to the ground.
• That means adopting and enforcing the Principles for Locally Led Adaptation across major funders.