FCPF Carbon Fund: Lao PDR Northern Laos Emission Reductions Payments Project

active

Prospective

The development objective of the Northern Laos Emission Reductions (ER) Payments Project for Lao People’s Democratic Republic (PDR) is to make payments to the program entity for measured, reported, and verified ER from reduced deforestation, forest degradation, and enhancement of forest carbon stocks (REDD+) in six Lao PDR provinces and to distribute ER payments in accordance with an agreed benefit sharing plan (BSP). The project is organized in two processes that includes: (i) verification of and payment for measured and reported ERs generated by the government’s governance, forest landscapes, and livelihood (GFLL) program. The verified volume of ERs, combined with the unit price agreed in the ER payment agreement (ERPA), will then translate into corresponding ER payments. As part of this transaction, ERs will be transferred from the program entity to the forest carbon partnership facility (FCPF) carbon fund via a centralized carbon registry (carbon assets trading system) managed by the World Bank, acting as trustee of the FCPF carbon fund; and (ii) distribution of the ER payments according to the BSP. The proceeds from verified ER payments will be shared according to an agreed BSP, designed based on the criteria in the carbon fund methodological framework and in a manner that is acceptable to the World Bank. The BSP describes the distribution mechanism, funds flow, and rules of allocation of proceeds to agreed beneficiaries.

FY17 - Agriculture, Fishing and Forestry

World Bank

Project

Raw Materials, Government