The Lao PDR on July 9, 2024, received a payment of $16 million from the World Bank-administered Forest Carbon Partnership Facility for reducing greenhouse gas emissions and enhancing carbon stocks in the forest sector. The verification of these emission reductions through the REDD+ mechanism makes Laos the second country in the East Asia Pacific region to receive a results-based payment.

This carbon credits payment was made to Laos for reducing 3.2 million metric tons of carbon emissions between January 1, 2019, and December 31, 2021. The reductions were made in an area that spans six provinces in northern Laos and constitutes about a third of the country’s geographical area. The emission reductions were verified by an independent third-party auditor. It is the first of two payments under the country’s Emission Reductions Payment Agreement, which is set to unlock up to $42 million for reducing as much as 8.4 million metric tons of carbon emissions between January 2019 and December 2024. 

The payment will be distributed among all participating stakeholders, with 82% of the total earmarked for local forest-dependent communities and vulnerable groups, using a benefit-sharing plan that was designed through a transparent and participatory process.