Lao PDR Launches ICCAP Project to Strengthen Inclusive Climate Finance for Vulnerable Communities

Lao PDR Launches ICCAP Project to Strengthen Inclusive Climate Finance for Vulnerable Communities

Vientiane, 22 October 2025 – The Ministry of Agriculture and Environment, in collaboration with the Asia-Pacific Rural and Agricultural Credit Association (APRACA), hosted the national inception workshop of the Inclusive Climate Finance for Vulnerable Communities in Asia-Pacific (ICCAP) project in Vientiane today. The ICCAP project, supported by the International Climate Initiative (IKI) of Germany, is

Vientiane, 22 October 2025 – The Ministry of Agriculture and Environment, in collaboration with the Asia-Pacific Rural and Agricultural Credit Association (APRACA), hosted the national inception workshop of the Inclusive Climate Finance for Vulnerable Communities in Asia-Pacific (ICCAP) project in Vientiane today.

The ICCAP project, supported by the International Climate Initiative (IKI) of Germany, is jointly implemented by APRACA, the Stockholm Environment Institute (SEI), and Appui au Développement Autonome (ADA). The five-year initiative covers six countries: Bangladesh, Bhutan, Cambodia, Fiji, Lao PDR, and Nepal, with the goal of strengthening inclusive access to climate adaptation finance for vulnerable communities, particularly women, smallholder farmers, and marginalized groups.

In Lao PDR, the project will work closely with the Ministry of Agriculture and Environment, Ministry of Finance, Bank of the Lao PDR, relevant national institutions, financial service providers, and development partners to enhance policy frameworks, improve financial inclusion, and promote local innovation in climate adaptation.

The workshop introduced the objectives and structure of the ICCAP project, with a focus on Work Package 1 (Policy Analysis, Cooperation, and Engagement), led by APRACA. This component aims to identify policy and regulatory barriers, strengthen institutional coordination, and ensure that climate finance aligns with Lao PDR’s Nationally Determined Contribution (NDC) and National Adaptation Plan (NAP).

Distinguished representatives from government agencies, financial institutions, development partners, and civil society participated in the discussions, sharing perspectives on national policy priorities and opportunities for collaboration.
In his keynote address, the Secretary General of APRACA emphasized: “Lao PDR’s resilience to climate change depends on how effectively we channel climate finance to those most at risk. Through ICCAP, we aim to bridge policy, finance, and community needs to ensure that climate action is inclusive and transformative.”

The workshop concluded with a consensus on the importance of creating an enabling policy environment, building institutional capacity, and facilitating regional knowledge exchange. Participants reaffirmed their commitment to work together in implementing the project and ensuring that climate finance contributes directly to building adaptive capacity in local communities.

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