Forest-based climate action will only succeed if it is credible and delivered at scale.
I recently participated in the Lao People’s Democratic Republic (PDR) Second National Forum on Carbon Markets, organized by Global Green Growth Institute (GGGI) and the Australian Embassy, where I joined a panel of eminent experts to discuss opportunities and international support for advancing Article 6 cooperation.
A lot of these discussions in Lao PDR, and in the region, is centered on energy transition, which is crucial, but I felt it was equally important to highlight another part of the puzzle that often gets overlooked: forests and nature. They remain one of the most powerful, affordable, and immediate ways we have to address the climate crisis as well as other developmental challenges we face today.
For us working with countries on REDD+ (Reducing Emissions from Deforestation and Forest Degradation), it comes down to three essentials.
First, forests are not only a cornerstone of Lao PDR’s natural wealth, essential for livelihoods and biodiversity but are also a vital lever for the country’s climate strategy. Like Lao PDR, countries such as Indonesia, Viet Nam and Papua Neu Guinea (PNG) have high dependency on Agriculture, Forestry and Other Land Uses (AFOLU) sector—accounting for 65 – 78% of their national climate targets—and the region’s vast forests offer a unique opportunity for large-scale climate mitigation.
Second, carbon markets and Article 6 cooperation can create new revenue streams for forests and nature protection, helping reduce aid dependence.
Third, Asia-Pacific countries can make better use of the forest and land-use sector in line with their NDCs to unlock finance under Article 6.
These discussions are taking place amid the global attention shifting from readiness to implementation under Article 6 of the Paris Agreement and simultaneous evolution of crediting mechanisms. In this context, countries in the region are well positioned to demonstrate how forests can deliver high-integrity climate solutions while opening doors for new avenues of sustainable finance.
For instance, with support from partners, Lao PDR has made progress: it has adopted a carbon credit decree, launched pilot projects, and initiated bilateral partnerships that could lay the groundwork for international cooperation and market-driven climate finance.
This reflects a broader trend across the region. In Asia and the Pacific, after years of preparations, countries finally are moving beyond REDD+ readiness and results-based payments toward high integrity market-based approaches under Article 6.
Indonesia, Viet Nam, and Nepal are advancing REDD+ at national and sub-national levels for voluntary carbon markets and bilateral cooperation under Article 6 is expanding beyond energy and industry into the forestry and agriculture sectors.
What matters for scale
Even as countries step forward, one reality is becoming clear: voluntary markets on their own cannot deliver the scale of action required. That is where compliance markets, such as Article 6 , plays a complementary role: creating predictable demand, enforcing high integrity standards and mobilizing for larger pool of capital than voluntary carbon markets can achieve alone.
For Lao PDR and the wider Asia Pacific region, forest-based climate action will only succeed if it is credible and delivered at scale. Cutting emissions needs to go hand in hand with improving livelihoods, protecting biodiversity, and supporting rural development. To reach the speed and scale the Paris Agreement demands, countries will have to integrate nature and move beyond small pilots and embrace jurisdictional approaches that deliver impact across entire landscapes.
Bridging the gap between supply and demand
To help advance dialogue and accelerate progress toward Article 6 transactions, UN-REDD is convening a regional REDD+ Investments Roundtable in Seoul at the end of October during the Green Growth Week organized by GGGI. The roundtable will bring together jurisdictions and corporate buyers to explore practical pathways for high-integrity forest carbon deals, while providing clarity on the potential volume and availability of credits in the region and on evolving market expectations.
(For more information about the roundtable, visit: https://www.un-redd.org/events/redd-investments-asia-implementation-roundtable)
The aim is not only to move closer to concrete transactions, but also to narrow the gaps between buyers and sellers by building trust, transparency, and shared understanding.
Protecting, sustainably managing and restoring forests remain one of the most cost-effective solutions to address the climate crisis, while at the same time offering co-benefits for livelihoods, ecosystems, and sustainable development essential to adapting to a changing climate.
