Governance and Financing Mechanisms for Climate Action in the Lao People's Democratic Republic

The Lao People's Democratic Republic is proactively addressing climate change through national strategies and regulations aligned with the Paris Agreement's global objectives. The country’s 9th Five-Year National Socio-Economic Development Plan (2021-2025) emphasizes disaster readiness and resilience-building, reflecting the nation's commitment to climate change mitigation and adaptation. Its National Green Growth Strategy 2030, established in 2019, focuses on reducing vulnerability to disasters, promoting low carbon emissions, and sustainable economic growth. Lao People's Democratic Republic updated its NDCs in 2021, outlining greenhouse gas reduction and climate adaptation efforts. These initiatives target short-term goals for climate-compatible development by 2030. For the longer term, the country is creating a Long-Term Low Emission Development Strategy. It aspires to achieve low carbon and net-zero emission targets by 2030 and 2050, respectively, while enhancing resilience.  

 To reach these ambitions, technical processes, capacity building, institutional reinforcement, and financial backing are essential. Therefore, the country requested support to assess its ability and governance structures to enhance national policies, institutions, financial systems, technical abilities, and supportive mechanisms. With funding from the NDC Partnership and technical support from the UNEP Copenhagen Climate Centre, institutional, capacity, and financial gaps needs for NDC implementation were identified on the basis of a review of existing governance and financial mechanisms.  

Moreover, UNEP hosted a multi-day workshop in Vang Vieng in November 2024 that relayed to government partners how to draft compelling funding proposals to climate funds an drew on actual project ideas in need of funding.  

 In addition to this workshop, institutional capacity was built with two Ministries: One outcome was the production of a concept note on solar irrigation which was co-produced with the department of Irrigation and the Ministry of Agriculture and Fisheries. Secondly, a sustainable procurement standard for room air conditioners was produced for the Ministry of Energy and Mines.  This procurement standard can help inform public procurement in government buildings and enhance energy efficiency in public buildings.  

 This work is funded by the NDC Partnership Action Fund, a funding mechanism for countries to have greater access to technical and financial resources to respond to climate action needs. 

Since 2023, UNEP and the UNEP Copenhagen Climate Centre have supported developing countries in fast-tracking their NDC implementation and bridging gaps in support with funding from the NDC Partnership Action Fund.