Lao PDR has revised its NDC and put forth more ambitious targets to be achieved by 2030. They include setting the course for Lao PDR to achieve net-zero emission by 2050 on the condition of additional support from international sources. 

The key challenges in enhancing Lao PDR’s access to climate finance are: 

• The country has no national private accredited entity that can provide on-lending and/or blending fiduciary functions. 
• Limited knowledge of nominated direct access applicants and NDA in accreditation and scaling up climate change programmes/best practices. 

This Readiness grant aims to support the accreditation process and to build the capacity of two domestic financial institutions/banks, to meet and fulfill GCF’s accreditation standards and requirements for on-lending instruments and blending fiduciary functions, as well as to strengthen the capacity of NDA and nominated DAEs on GCF accreditation. 

The beneficiaries of this Readiness grant include the Government of Lao PDR, the NDA – Ministry of Natural Resources and Environment (MoNRE), and potential accredited entities. The indirect beneficiaries include other key relevant agencies, national and subnational governments, non-state actors, private sectors, proponents submitting project concept notes, and local CSOs representing communities and vulnerable groups.