This project, led by Global Green Growth Institute (GGGI) and the Ministry of Planning and Investment (MPI) as the key government counterpart, supports the development and operationalization process of the Green Growth Index (GGI). The GGI has been designed as an evidence-based tool for Lao PDR to monitor and track green growth policy implementation and investments, and to compare performance against other Southeast Asian countries. This initiative focuses on building the nominated government entities’ capacity to design, manage, and monitor the GGI, covering green growth indicators, data preparation, and result interpretation for comprehensive green growth planning. The project also supported the review and update of indicators under the National Green Growth Strategy (NGGS),  and enhanced coordination among MPI and various line ministries to mainstream green growth into national and sub-national development plans, aligning with Lao PDR’s commitment to sustainable development.

An initial framework for monitoring green investment existed under Lao PDR’s NGGS, with opportunities for enhanced operational effectiveness. Given the Government’s scaled-up commitment to green growth, an improved and fully operational GGI became highly beneficial for tracking progress. This presented an opportunity to strengthen the MPI’s  capacity to monitor NGGS implementation, mainstream green growth into plans, and evaluate progress. Developing a new, comprehensive index and enhancing official capacity to utilize it is crucial for guiding future NGGS updates and fostering comprehensive green growth integration.

The project strengthened Lao PDR’s capacity for advancing green growth and facilitated the implementation of its NGGS by:

– Supporting capacity building for MPI officials on National GGI design, management, and monitoring, including data interpretation.

– Facilitating GGI development and deployment, involving indicator updates, data collection, index computation, and technical recommendations.

– Enhancing public engagement and green growth awareness through annual forums, student drawing contests, and inclusive communication.

– Promoting sustainable operational practices at MPI via a Green Office Initiative, focusing on waste management, energy conservation, and environmental awareness.

Capacity Building for the Lao PDR Green Growth Index

This component focused on training government officials from the line ministries to effectively design, manage, and monitor a comprehensive Green Growth Index (GGI). It included understanding green growth indicators, preparing necessary data, and interpreting the results. The component directly enhanced the human capital within the government, enabling local expertise to drive green growth initiatives sustainably.

Development and Deployment of the Lao PDR Green Growth Index

This component involved the practical steps of reviewing and updating existing indicators, collecting relevant data, and computing the GGI itself. Furthermore, it included technical recommendations for future improvements to the GGI. This component delivered a tangible tool—the GGI—that the Government of Lao PDR (GoL) can use to monitor the implementation of the National Green Growth Strategy (NGGS), evaluate progress, and ultimately mainstream green growth into national, sub-national, and sectoral development plans.

The project aimed to strengthen Lao PDR’s capacity to advance green growth and implement its National Green Growth Strategy. In particular, it focused on enhancing the Government of Lao PDR’s, especially the Ministry of Planning and Investment’s (MPI), ability to monitor green growth and integrate its principles into national and sub-national development plans. Key results achieved include:

– Green Growth Mainstreaming: Green growth deepened in national policies due to enhanced official capacity in planning and monitoring.

– Systematic Policy Foundation: A robust foundation for systematic green policy development and monitoring was established via the GGI.

– Comprehensive GGI Development: A comprehensive Green Growth Index with 89 indicators and sub-indicators was developed.

– Capacity Enhancement: GoL’s capacity in green policy planning and GGI utilization significantly improved.

– Future Policy Integration: The GGI is positioned for integration into future national development plans (e.g., 10th NSEDP) to guide green policy planning and monitoring.

Lao PDR’s Green Growth Vision and Progress

“Through NGGS, Lao PDR’s development is directed toward green growth, ensuring the balance between economic expansion, environmental protection, and social development. The Lao PDR GGI will be our data-driven tool to track our policy impact and benchmark compared with Southeast Asian countries.” – Ms. Sysavanh Didaravong, Deputy Director General, Development Research Institute of MPI

The project’s next steps involve considering sub-national Green Growth Index (GGI) development and integrating the GGI as a policy tool into upcoming 5-year National and Provincial Socio-economic Development Plans.

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