Despite years of pledges to ‘shift the power’ to local humanitarian actors, international donors are still falling short on localisation. In the times of strained humanitarian funding situation, this could pose a serious threat to locally-led humanitarian projects.
As humanitarian budgets shrink, transfering the decision-making to local actors was to have made aid more effective and accountable. But no institution fully meets localisation commitments, a new report by Caritas Europa finds. The highest score achieved is just 77 out of 100.
Building on its 2023 analysis, the report ranks ten donor governments – including Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) – alongside four UN agencies and four international NGOs. While it finds some signs of improvement, structural change remains limited and increasingly fragile in the face of deep funding cuts in the frame of the Multiannual Financial Framework (MFF).
Scores improve but no one reaches the bar
The findings show incremental improvements. A greater share of funding now reaches local and national actors compared to 2023. And more institutions have adopted policies aimed at supporting equitable partnerships. Yet the overall picture remains sobering. No institution fully meets its localisation commitments.
Decision-making authority, risk-sharing and access to flexible, long-term funding remain largely in international hands. Local actors continue to face barriers in leading coordination mechanisms or setting strategic priorities, despite often being the first responders and the most deeply rooted in affected communities.
“Local leadership is the foundation of effective and just humanitarian action that puts people and their dignity at the heart of every response,” said Michael Landau, president of Caritas Europa.
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“We are seeing strong examples of locally led action rooted in solidarity and trust, but without institutionalised change and the political will to shift decision-making power, this progress will not reach its full potential,” Mr Landau added.
Funding crisis
The report highlights a persistent imbalance in the distribution of risk and responsibilities. While local actors are to deliver results in highly volatile contexts, international partners frequently retain control over decision-making and financial management.
This dynamic becomes even more problematic in a context of shrinking humanitarian budgets. In 2025, global humanitarian aid covered only around 28 per cent of identified needs, forcing programmes to close or scale back significantly.
Local leadership is the foundation of effective and just humanitarian action that puts people and their dignity at the heart of every response. — Michael Landau, president of Caritas Europa
According to the report, there is a growing tendency to prioritise short-term cost-efficiency over long-term partnership building. This shift risks reversing hard-won gains on localisation.
Indeed, local organisations, which often depend on short-term project funding, suffer from exposure disproportionately. When resources decline, they are typically the first to face cuts, undermining both community trust and operational continuity.
Practising and necessity
As the humanitarian funding crisis deepens, the report argues, localisation “should not be treated as a secondary objective but as a core principle of effective and accountable action”. Without structural reform progress will remain fragile.
They call on donors, UN agencies and international NGOs to move beyond rhetorical commitments and adopt concrete measures that empower local organisations to lead humanitarian responses.
The core of the reform should be set put in another way: enabling local organisations to lead coordination structures, expanding access to quality and flexible funding and investing in long-term organisational development rather than short-term project delivery.
