Green Climate Fund Readiness and Preparatory Support


Deforestation in Houana, Vientiane Prefecture. Photo: UNDP Lao PDR/Silvia Jundt


What is the project about?

Lao PDR is highly vulnerable to impacts of climate change with longer dry periods and intense wet periods being experienced. The country’s contribution to global greenhouse (GHG) emissions accounts for only 51,000 Gg or 0.001% of the total emissions globally. However, in the Second National Communication to the UNFCCC, Lao PDR had been reported as changing its status to being a net emitter, not because of increased emissions, but because of rapid loss of forest cover. Despite this, Lao PDR has ambitious plans to reduce its GHG emissions while at the same time increasing its adaptation efforts thereby improving its resilience to the negative impacts of climate change. Climate change is already affecting livelihoods, food security, water supply and health among much of the country’s population.

Lao PDR has a long-term goal for national development which is set out in the 8th National Socio-Economic Development Plan (2016-2020), with a Vision to 2030.

According to this vision, Lao PDR aims to graduate from Least Developed Country (LDC) status by 2030 through inclusive, stable and sustainable economic growth whilst alleviating poverty. Lao PDR recognises the strong link between economic development, sustainability and the need to mainstream environmental considerations, including action on climate change into its development plans.

However, strengthening institutional and individual capacity is one of the challenges to be addressed to support Lao PDR in making progress towards the achievement of the goals the country set in the Nationally Determined Contribution (NDC).  The NDC provides the country with a solid foundation for strengthening the planning, implementing, monitoring and evaluating process under the Paris Agreement. Improving understanding of the potential requirements will increase awareness of this initiative and assist Lao PDR in implementing their NDC. 

The Department of Climate Change (DCC) has an important mandate on climate change policy formulation and advancing the climate change and disaster risk reduction work across sectoral ministries and relevant departments. In this context, assuming additional function of the Green Climate Fund (GCF), National Designated Authority (NDA) for Lao PDR reinforces the institutional mandate of the DCC but also presents an additional challenge, given the limited capacities of the institution.

In order to strengthen these capacities, the DCC took applied to the GCF for these readiness and preparatory funds, using UNDP as the delivery partner. The support provided will take into account the progress on climate policy and finance made to date by the Government of Lao PDR.

Objectives and Outcomes

  • To enhance the institutional capacity of the NDA and its engagement with national and sub-national stakeholders, as well as for raising awareness and understanding on the GCF across different stakeholder groups.
  • Country capacity strengthened; a) NDA/focal point lead effective coordination mechanism; b) Bilateral agreements between the country and the GCF executed; c) Monitoring, oversight and streamlining of climate finance.
  • Stakeholders engaged in consultative processes; country programmes, including adaptation priorities, developed and continuously updated.

Project Details

  • Duration: 18 months
  • Geographic coverage: Lao PDR
  • National Designated Authority: Department of Climate Change, Ministry of Natural Resources and Environment
  • Focus area: Climate Change and Disaster Risk Reduction
  • Implementing partner: UNDP

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