Introduction 

Lao PDR faces a critical climate finance gap of over US$7 billion by 2030. To help close this gap, UNDP is implementing the Climate Finance Network (CFN) to strengthen national financial infrastructure and unlock private capital for green growth. Supported by the UK FCDO CARA Programme and SIDA, this work aligns public and private finance with Lao PDR’s climate priorities—including the National Adaptation Plan and the 10th National Socio-Economic Development Plan. This work is part of the UNDP Climate Finance Network, supported by the UK FCDO CARA Programme. 

What we do 

🏦 Building a national investment platform 

• The challenge: Structuring bankable, government-led investment proposals to attract large-scale international climate financing. 
• The approach: Support the national Climate and Sustainable Finance Hub to integrate climate finance into key national planning, including the draft NDC 3.0 Investment Plan.  
• The impact: A credible national platform equipped with a strong pipeline of projects ready for international funding and global partnerships. 

🔓 Unlocking private capital action 

• The challenge: Leveraging public funds effectively to attract private investment for green and climate-aligned projects. 
• The approach: Design a Green Blended Finance Facility to absorb initial risks, alongside building partnerships with local financial institutions for sustainable lending. 
• The impact: Increased mobilization of private capital dedicated to sustainable agriculture, eco-tourism, and renewable energy. 

Our impact in action 

🛡️ Addressing loss and damage 
Conducting a diagnostic study on climate-induced loss and damage (L&D). This study provides the foundational evidence needed to develop a national L&D strategy and to mobilize both international and domestic finance as part of the country's next NDC. 

🤝 Supporting green MSMEs  
- Partnerships with local banks allow the integration of "Growing Your Business" advisory services directly into their credit appraisal processes. This self-sustaining model expands green lending portfolios while fostering inclusive economic growth for local entrepreneurs, especially women-owned businesses.  

- The UNDP Climate Venture Scaler program was launched to build a pipeline of growth-stage climate enterprises, particularly those led by women, by providing technical assistance and connecting them with investors.