Natural Capital Accounting for Forests in Lao PDR : Policy Brief

Overview & Synopsis

The report presents a policy brief on Natural Capital Accounting for forests in Lao PDR, highlighting the importance of forests as a key national asset supporting economic growth and livelihoods. It analyzes changes in forest extent, land use, and carbon stocks from 2000 to 2022, showing a decline in current forest cover alongside expansion of agriculture and settlements. The report also quantifies the economic value of forest services, estimated at about 5 percent of GDP, and identifies trade-offs between development and ecosystem sustainability. It emphasizes the need for improved data systems and integrated policy approaches to support sustainable forest management and informed decision-making.