Project News

The Green Climate Fund (GCF)^[1] was established in 2010 as a part of the UNFCCC's financial mechanism to support climate change mitigation and adaptation actions in developing countries. GCF is playing a central role in climate financing — the amount pledged by contributors reached US$ 10.3 billion for the period of 2015-18 and, further, additional contributions were announced by the Parties at UNFCCC COP24 last year. This article reports on how Lao forestry/REDD+ is trying to approach GCF and the role of F-REDD.

FAO, GIZ, and JICA are currently playing leading roles in Lao PDR in the following three phases: 1) GCF funding for readiness; 2) funding for the GCF project; and 3) REDD+ results-based payment.

FAO's "Incentive mechanisms for private sector engagement under REDD+ in the Lao People's Democratic Republic", the first phase, aims to create an enabling environment for the promotion of "green agriculture" in the agricultural and forestry sectors, as well as in the Emissions Reduction (ER) Program (see below). Here, F-REDD will pursue synergy with its support for the revision of the Forest Strategy, revision of the Forestry Law, and various REDD+ policies.

As for GIZ's "Implementation of the Lao PDR Emissions Reduction Programme through improved governance and sustainable forest landscape management", the second phase, under the lead of GIZ as an Accredited Entity, JICA, ADB, FAO and other entities, are formulating a co-financing project with GCF to implement the ER Program for the FCPF Carbon Fund^[2]. If this project is realized, JICA will provide Technical Assistance (TA) to the central level and the two northern provinces. As a result of this, GCF funds will be utilized in the on-site activities, and so it is expected to leverage the JICA TA support roughly three to four times.

The "National REDD+ Results-based payment (currently under consideration by JICA)", the third phase, supported access to REDD+ results-based payment at the national level for the period of 2015 to 2018. F-REDD has been acting as the main supporter of the national REL and NFMS, and is also cooperating on the formulation of the National REDD+ Strategy, meaning that its contribution has extended to three of the four pre-conditions for REDD+ results-based payment. F-REDD is currently preparing to support the first national MRV and REDD+ results report to the UNFCCC. By connecting these to REDD+ results-based payment, the long-waited financial mechanism of REDD+ will be finally realized.

Along with Lao PDR's approach to GCF, the support of F-REDD is evolving. We will keep you updated.