Investing in results to revive Southeast Asia’s Forests

The Green Climate Fund (GCF) is advancing REDD+ implementation in Southeast Asia by turning verified emission reductions into sustained investment in forest protection. With more than USD 130 million approved for results-based payments, GCF is supporting countries in reinvesting REDD+ proceeds in national efforts to reduce deforestation while strengthening the institutions and systems needed to maintain those results over time.

Last week, GCF and the Japan International Cooperation Agency (JICA) signed a contract outlining the terms for implementing a USD 61.5 million in results-based payments to Lao PDR. In the previous month, the GCF Board approved an additional USD 72 million under the same mechanism for Viet Nam.

GCF’s Director of the Asia and Pacific Region, Hemant Mandal, said the two investments will support both national governments in reducing deforestation and in strengthening national systems to sustain those gains over time.

“This is climate finance working as it should: rewarding real, verified results and reinvesting in the people and landscapes that made those results possible,” Mandal said. “Protecting forests is one of the most effective climate solutions. By rewarding verified results, these projects reinforce a country-owned approach that turns forest protection into a durable pathway for climate mitigation and resilience. The investment reflects GCF’s commitment to strengthen country ownership of climate action and be the climate partner of choice for Lao PDR and Viet Nam.” 

The GCF investments were made under the United Nations Framework Convention on Climate Change’s (UNFCCC) REDD+ process, which supports countries in reducing emissions from deforestation and forest degradation and in fostering conservation, sustainable management of forests, and the enhancement of forest carbon stocks. Countries become eligible to access results-based payments when they report verified emission reductions.

Lao PDR and Viet Nam have both made strong commitments under the REDD+ framework to reduce emissions. Their reported results were verified by UNFCCC, becoming eligible to access results-based payments under GCF’s REDD+ Pilot Programme.

In Lao PDR, GCF proceeds will be reinvested to strengthen the sustainable management of forests across five southern regions (Savannakhet, Salavan, Champasak, Attapeu and Sekong). In Viet Nam, proceeds will be reinvested to tackle the drivers of deforestation and forest degradation in six provinces (Phu Tho, Son La, Dien Bien, Lai Chau, Lao Cai, and Tuyen Quang). JICA, as the Accredited Entity, will implement the projects in cooperation with local authorities and partners in both countries.

In addition to Lao PDR and Viet Nam, GCF has also invested in REDD+ results-based payments in Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Indonesia, Papua New Guinea, Paraguay, and Uganda.