The majority of funding for REDD+ and related forestry programmes in Lao PDR originates from bilateral and multilateral sources. Major bilateral donors include Japan (JICA USD 16 million, Government of Japan USD 4.75 million), Germany (BMZ-GIZ/KfW USD 19.4 million), the European Union, the United States of America (through the USD 20 million LEAF programme) and Norway (NORAD and Government of Norway USD 2.6 million). In terms of multilateral sources of funding, a significant proportion of financing for REDD+ comes from the various funding bodies of the World Bank; including the Forest Carbon Partnership Facility (up to USD 3.6 million) and the Forest Investment Programme (USD 30 million) under the Strategic Climate Funds. Funding for putting together the Readiness Preparation Proposal (R-PP) was closed in March 2013, the FCPF having disbursed 86% of the total amount. A new grant for the implementation of the R-PP (a REDD Readiness grant) is expected to be signed in mid-2013 (FCPF, 2013).
Other multilateral partners include the Food and Agriculture Organisation of the United Nations (FAO) (USD 40,000) and the UN-REDD Programme, although as Lao PDR only became a UN-REDD country participant at the end of 2012, there is no funding to report yet.
At the national level Lao PDR has a Forest and Forest Resource Development Fund for the delineation and management of the three forest categories (Protection, Conservation and Production), law enforcement and other planned activities that contribute to reducing deforestation and forest degradation. A number of other sub-national activities by NGOs, international organisations and the private sector are funded through a variety of sources including government and private donor agencies and private investors.
FOREST CARBON PARTNERSHIP FACILITY (FCPF). 2013. REDD Readiness Progress Fact Sheet. Country: Lao PDR. June, 2013. Available here. [Accessed June 2013]