Emission reductions through improved governance and sustainable forest landscape management
Title: Implementation of the Lao PDR Emission Reductions Programme through improved governance and sustainable forest landscape management
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Fanincier: Green Climate Fund (GCF), Asian Development Bank, Lao PDR Ministry of Agriculture and Forests, International Fund for Agricultural Development, Japan International Cooperation Agency, Private sector
Country: Lao People’s Democratic Republic
Lead executing agency: Government of Lao PDR (represented by Ministry of Agriculture and Forests (MAF) and Ministry of Natural Resources and Environment (MoNRE)), GIZ, JICA
Overall term: 2020 to 2024
In recent years, Laos has progressed substantially towards REDD+ readiness, notably through the acceptance of the Forest Reference (Emission) Levels (FRL/FREL), finalised REDD+ Strategy, Strategic and Social Environmental Assessment (SESA) and Environmental and Social Management Framework (ESMF), as well as the final acceptance of the Emission Reductions Programme Document (ER-PD). The government has introduced far reaching policies and reforms, including ambitious targets in their Nationally Determined Contributions (NDC) such as 70 per cent forest cover, a timber export ban and a new Forest Law. The Lao People’s Democratic Republic (PDR) is now strategically well-placed for Phase 2 of REDD+ (implementation) in order to reduce forest-sector emissions and to achieve further changes.
The availability of financing for a deep transformation in the way Laos manages its forest landscapes is enhanced, the legal and regulatory framework for forestry is strengthened, and the enforcement of the new regulatory framework is improved.
This project, co-financed by the Green Climate Fund (GCF), the Asian Development Bank (ADB), the Lao PDR’s Ministry of Agriculture and Forests, the International Fund for Agriculture and Development (IFAD), the Japan International Cooperation Agency (JICA) and private sector partners, is embedded in a wider programme that consists of three projects. Projects 2 and 3 still need to be finalised and submitted and are yet to be approved by the GCF:
- Project 1 (mid-2020 to mid-2024) covers the Lao provinces Houaphan, Sayabouri and Luang Prabang, which have the highest rates of deforestation and forest degradation within the programme area;
- Project 2 (mid-2024 to end-2029) will scale up the number of participating communities in the same geographical area;
- Project 3 (2022 to end-2029) will extend the geographical reach of the programme to three additional provinces of Luang Namtha, Bokeo and Oudomxay.
Project 1 will reduce greenhouse gas emissions by 5.6 million tonnes of CO2 equivalent during its four year period, at a cost to the GCF of 0.4 EUR per tonne of CO2 equivalent. The project mobilises 50 million EUR of co-financing and will unlock REDD+ results-based payments of 23 million EUR from the Forest Carbon Partnership Facility (FCPF). At the core of the project are performance-based payments to participating communities and institutions to incentivise and fund sustainable land-use practices that yield the highest emission reductions. Project 1 will serve to support the subsequent projects 2 and 3. Overall, this project will deliver three major outputs to the implementation of REDD+ in the Lao PDR, including
1. Enabling environment for REDD+ implementation,
2. Market solutions for agricultural drivers of deforestation,
3. Climate change mitigation action through forestry.