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The forest cover in Laos has decreased over the past three decades for variety of reasons. The current Laos Government has committed itself to restoring the forest cover to 70 per cent by 2020. As a result, many conservation projects and programs have been planned and implemented in different parts of the country. REDD+ was introduced in late 2007; however, progress of implementation of REDD+ has been slow. This paper examines and updates the status of REDD+ implementation in Laos, using information from literature and interviews with relevant individuals. The paper reveals that progress of REDD+ is slow not only due to external factors but also on internal factors. Currently, there are various international organisations and NGOs, from both the public and private sectors, attempting to pilot REDD+ projects. Laos faces many challenges in implementing REDD+, including institutional arrangements; appropriate methods for carbon accounting, reporting and verification; benefit sharing; and engaging local communities.

Reducing emissions from deforestation and forest degradation (REDD+) is viewed as an effective way to mitigate climate change by compensating stewards of forested areas for minimizing forestland conversion and protecting forest services. Opportunity costs assess the cost of foregone opportunity when preserving the forest instead of investing in an alternative activity or resource use. This paper questions the calculation method of opportunity costs using averaged economic benefits and co-benefits of different land-use transitions. We propose a nested approach to land-use transitions at the interface between landscapes and livelihoods and assessing a wide range of potential socio-ecological costs and benefits. Combining household surveys and focus groups with participatory mapping, we applied the approach in villages of Laos, Vietnam and China positioned along a broad transition trajectory from subsistence shifting cultivation to intensive commercial agriculture. By looking beyond the economics of land use, we highlight important linkages between land-use changes and livelihood differentiation, vulnerability and inequalities. Our results show the importance of addressing the impacts of land-use transitions on a wide range of potential ecological and socioeconomic costs and benefits at multiple levels.

This report explores the drivers (both direct and indirect) of deforestation and forest degradation and discusses the political, economic and social opportunities and constraints that will influence the design and implementation of REDD+ in Laos. The government of Laos has long sought to curb deforestation and forest degradation, and the country is receiving considerable international attention and support to implement REDD+. However, agricultural expansion, the development of industrial tree plantations, and large hydropower, mining and infrastructure projects continue to result in deforestation, with shifting cultivation and selective logging (legal and illegal) largely blamed for forest degradation. At the same time, indirect drivers of deforestation and forest degradation are rooted in a national agenda of economic growth, characterized by incentives for foreign and domestic investment in forest management and timber harvesting. As a result, Laos is becoming an important resource frontier for transnational capital and large-scale land and natural resource investments. The consequent intensification of competition for resources poses a challenge not only for forest governance, but also for the development of REDD+ policies and initiatives. In an examination of the institutions and policies defining Laos� forestry sector and REDD+, the report reflects on lessons to be learned from past forestry and economic development policies. The government of Laos has demonstrated strong political interest in REDD+, but REDD+ implementation faces major obstacles, particularly unclear carbon rights and weak governance, with the latter attributable to poor local capacity, weak coordination among stakeholders, and minimal involvement by local communities and civil society. The report makes several recommendations for achieving effective, efficient and equitable outcomes of REDD+ in Laos: capacity building of administrative and technical staff, especially at the subnational level; clarification and harmonization of land-use planning and land allocation processes; and stronger monitoring and law enforcement in areas under high threat of deforestation and forest degradation. Furthermore, an accountable and transparent mechanism for sharing the benefits of REDD+ across levels and fully accountable consultation processes must be implemented, with the participation of not only elite and powerful actors such as domestic and foreign businesses but also local groups and civil society.