The Lao People’s Democratic Republic (Lao PDR) has one of Southeast Asia's highest forest cover rates. Approximately 70 per cent of the population lives in rural areas, with nearly two-thirds heavily dependent on forests for their livelihoods. However, forests have diminished in the past decades due to deforestation and forest degradation. The primary drivers include land expansion for agriculture, livelihood needs seemingly dependent on uncontrolled cultivation, infrastructure development and unsustainable logging.

Lao PDR has been establishing national policies, strategies, and institutional frameworks to guide forest management and sustainable use, with REDD+ initiatives being an important part of the process since 2008. Following an independent technical assessment under UNFCCC guidelines, Lao PDR’s reported results of verified emission reductions of 14,391,897 tCO₂e from 1 January 2015 to 31 December 2018 were confirmed as credible and transparent. With this verification, the country became eligible to access results-based payments under GCF’s REDD+ Pilot Programme.

The GCF proceeds from the REDD+ RBP will be reinvested in implementing the Governance, Forest Landscapes and Livelihoods – Southern Laos Project (GFLL-SL), which will promote the sustainable management of Lao PDR's forests to enhance climate change mitigation and adaptation capacities, ecosystems conservation, and equitable and sustainable green growth of rural communities. GFLL-SL targets four critical forest landscapes across five southern regions of Savannakhet, Salavan, Champasak, Attapeu and Sekong. By integrating conservation, restoration, and livelihood measures at scale, GFLL-SL reduces emissions, enhances carbon stocks, and builds resilience for local communities. This makes the use of proceeds both climate-critical and highly cost-effective.