LA - FCPF Readiness Grant

1. The Project Development Objective is to contribute to Lao PDR’s efforts to design and implement a sound national REDD+ strategy. 2. Achieving this objective will enable Lao PDR to participate in and benefit from the emerging performance-based payment system from REDD+ within the context of the UN Framework Convention on Climate Change. The activities aim to put into place socially and environmentally sound policies and programs to reduce deforestation and forest degradation, an internationally recognized reference emission level, generate forest carbon emission scenarios, and technically robust systems of forest monitoring and emissions reporting. The program will also focus on non-carbon outcomes vital to achieving REDD+ objectives which will include enabling forest policy and regulations, increasing the participation of local communities in forest management, building institutional capacity in the foresty sector, improved information and data management and related activities which will contribute to the overall development of forests and well-being of communities in Lao PDR and contribute to the national goals of poverty reduction, economic development and environmental sustainability. 3. To achieve the PDO the grant will support: a) operational costs and capacity build for the REDD+ Office at the Department of Forestry (DoF, Ministry of Agriculture and Forestry) and the REDD+ Division within the Department of Forest Resources Management (DFRM, Ministry of Natural Resources and Environment), b) developing a National REDD+ Strategy, c) developing REDD implementation approaches and benefit sharing mechanisms in coordination with other Development Partners, d) implementation of safeguards through preparation of a Strategic Environmental and Social Assessment (SESA) and an Environmental and Social Management Framework (ESMF) for REDD in Lao PDR, and e) development of Reference Emission Levels and design of a system for monitoring, reporting and verification. The FCPF grant will finance some initial work on most major areas of REDD+ capacity building as defined in the Lao PDR R-PP. 4. As mentioned above the grant will fund only a portion of the activities identified in the R-PP, which will accelerate Lao PDR efforts to achieve REDD+ Readiness. Nevertheless, the country may not reach full readiness until after the grant closes. Based on the activities outlined in the R-PP, it is expected that Lao PDR would be able to participate in REDD+ carbon transactions, potentially including under the FCPF Carbon Fund, which would purchase emissions reductions from FCPF countries. Other options for selling emissions reductions may exist in the future, but depend on the development of the global carbon market for forest carbon credits. 5. Additional funding in the forestry sector will be through the Forest Investment Program (FIP) program and the International Development Association (IDA) which will jointly support the expansion of Participatory Sustainable Forest Management (PSFM) in Lao PDR under the Scaling-up Participatory Sustainable Forest Management project (P130222). 6. Key results, as follows: a) Strengthened technical and institutional capacities for effective management, implementation and coordination of REDD+ Programs, projets and policies b) Strategies to address drivers of deforestation and degradation c) REDD+ institutional framework designed and validated nationally, including an Environmental and Social Management Framework d) Social inclusion mechanisms in REDD+ at the national, provincial, district and community levels e) Regional collaboration mechanism for REDD+ implementation and avoidance of emissions displacement f) National reference scenario for emissions from deforestation and forest degradation prepared, taking into account t he relationship between national accounting and sub-national implementation of activities; a national carbon registry developed and operational.