PROJECT SUMMARY

This project, led by Global Green Growth Institute (GGGI) in collaboration with OECD, supported Lao PDR in improving its National Adaptation Plan (NAP) and revising the National Green Growth Strategy (NGGS) by introducing climate adaptation, economic, and SDG co-benefits modelling, particularly SDG 13 on climate action, as well as SDGs 1 and 2. The project customized and applied GEM-ADAPT, GGSim, and CatDSGE models to quantify avoided losses, costs, and benefits of adaptation measures, with a focus on the agriculture sector. Key deliverables included a policy brief and capacity-building workshops for National Ministries, and international experts. The project strengthened the government’s ability to use integrated modelling for evidence-based climate adaptation planning and laid the groundwork to scale this approach nationally.

CONTEXT AND BACKGROUND

Lao PDR’s agriculture sector is highly vulnerable to climate change, threatening food security and economic stability. However, the country lacked robust quantitative tools and technical expertise to assess adaptation interventions economically and in terms of multiple SDG impacts. The existing National Adaptation Plan and Green Growth Strategy needed stronger analytical backing to prioritize investments and policy actions. This project responded by filling those gaps—introducing advanced integrated climate-economic models and building government capacity for their use, enabling better informed, sustainable adaptation policies aligned with national development goals.

PROJECT OBJECTIVES

The project aimed to strengthen Lao PDR’s climate adaptation planning by:

– Customizing and applying GEM-ADAPT, GGSim, and CatDSGE models to provide economic assessments of adaptation pathways and SDG co-benefits.

– Building technical capacity among government officials for climate-economic modelling.

– Delivering evidence-based knowledge products and a policymaker guide to support the NAP and NGGS updates, particularly for agriculture adaptation.

– Establishing a replicable modelling framework for scaling climate resilience planning across sectors and regions.

PROJECT COMPONENTS

Technical Component

The project delivered customized climate adaptation, economic, and SDG co-benefits modelling tools (GEM-ADAPT, GGSim, CatDSGE) tailored to Lao PDR’s priority sectors, particularly agriculture. These tools enabled quantitative assessment of avoided losses, investment needs, and socio-economic benefits of adaptation options. The project produced a flagship policy guide and conducted targeted capacity-building workshops, enhancing government expertise in climate-economic analysis and supporting the evidence-based revision of the National Adaptation Plan (NAP) and National Green Growth Strategy (NGGS).

Institutional & Policy Component

Strengthening institutional coordination and ownership, the project facilitated multi-stakeholder engagement and validation processes ensuring alignment with national priorities. It enhanced the integration of climate resilience into development planning and established a scalable and replicable modelling framework for sub-national and sectoral applications, reinforcing sustainable and informed adaptation policymaking in Lao PDR.

The project aimed to strengthen Lao PDR’s climate adaptation planning by integrating economic modelling and SDG co-benefits analysis into national strategies. To achieve this, the project implemented a suite of technical and institutional interventions to address capacity gaps and improve evidence-based decision-making. The key results include:

Quantifiable Policy Impact

– Optimized Investment: Models enable cost-benefit assessments of agricultural adaptation, identifying interventions that deliver the highest return (economic, social, environmental).

– Strategic Prioritization: Facilitated the sequencing of adaptation actions based on effectiveness and affordability, ensuring efficient resource allocation.

– Targeted Policies: Provided climate impact data disaggregated by crop and region, supporting locally appropriate adaptation strategies.

Technical and Institutional Delivery

– Models and Framework: Customized climate-economic models (GEM-ADAPT, GGSim, CatDSGE) were developed alongside a scalable institutional framework for long-term use and replication.

– Informed National Strategy: Quantitative evidence underpinned a policy brief used to revise the National Adaptation Plan (NAP) and National Green Growth Strategy (NGGS).

– Sustained Capacity: Successfully strengthened government expertise and institutional readiness for climate-economic modeling.

Enhanced Climate Policy Development

“In light of fiscal constraints, this project offers strategic guidance on bankable priority adaptation actions, enabling the government to focus its investments on interventions with the greatest potential impact and return.” – Dr. Sitthiroth Rasphone, Director General, Development Research Institute, Ministry of Planning and Investment

The outcome of this project is directly informing adaptation policies development and budgeting in the agriculture sector, and the broader national planning process which includes the ongoing NDC3.0 development. Furthermore, the MAE and GGGI will continue to use and introduce the model at the sub-national level to support localized climate policy development and initiatives, complemented by efforts to strengthen institutional capacity and promote knowledge dissemination to ensure sustained impact.

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