Assessment of Lao PDR’s Emission Reduction Program and Options for Future Emission Reductions Results-based Programs

Overview & Synopsis

This report assesses opportunities to scale up Lao PDR’s Emission Reductions Program and expand participation in carbon markets, in response to government interest. Conducted in 2025, it evaluates the performance of the Governance, Forest Landscapes and Livelihoods program, analyzes drivers of deforestation, and examines the effectiveness of results-based payments. Covering six northern provinces, the program addresses significant deforestation pressures driven by agricultural expansion, shifting cultivation, illegal logging, and infrastructure development, alongside underlying governance and land tenure challenges. The program operates in a dynamic environment influenced by broader market forces. It is supported by results-based payments under the Emission Reduction Payment Agreement and complementary investments, including the GCF funded I GFLL project. Together, these financing streams enable participatory land use planning, community forestry, and climate smart livelihoods. The report highlights how coordinated funding and institutional strengthening can support sustained forest conservation and scalable emission reduction outcomes.