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Lao PDR is well on its way to fulfill the graduation criteria and to pass from the status of an LDC to the one of a developing country (…) Graduation, however, poses new challenges for the sustainable development of Lao PDR as its conditions on the international markets will become more difficult.

Lao PDR adopts a uniform licensing policy and procedures which have been notified and accepted by WTO during the accession process. (...) Non-automatic licensing applies to the products included in the list established in 2012 for specific legitimate reasons (national security; protection of human, animal or plant life or health; and protection of environment).(...) Finally, the list notified to the WTO in the course of accession contains products importation and exportation of which is prohibited on the basis of international obligations or for the sake of environmental protection.

Since 2013, biomass has also been used to produce electricity and accounts for roughly 0.02 0.03% of Lao PDR's overall energy portfolio.

The purpose of Lao PDR's policy response to this challenge is to ensure that the graduation is not hampering its sustainable development by (i) identifying possible risks associated with the graduation and (ii) implementing the appropriate measures to respond to this new challenge.

During the review period, in accordance with the 8th NSDEP, Lao PDR concentrated its efforts on sustainable recovery and effective management of its forests; forest development; as well as forest and forest resources protection. (...) the Ministry of Agriculture and Forestry opened a Forest Law Enforcement, Governance and Trade (FLEGT) Standing Office with support from Germany's Agency for International Cooperation (GIZ). In 2015, the FAO – World Bank Cooperative Program, the SUFORD SU project (Scaling up participatory sustainable forest management project, financed by World Bank and Finland) and the GIZ ProFLEGT project have developed the Forestry Legality Compendium, which comprises all relevant legal provisions and provide a summary analysis on the forestry legal framework, including legislation associated with forest and forestland and the use of forest products, including from production forest, plantations, forest conversion/concession areas and village use forests. It covers planning, harvesting, transportation, processing and trade in unprocessed and semi-processed wood and finished products.

Lao PDR has also joined the Protocol Relating to (…) Nagoya Protocol on Access to Genetic Resources and the Fair and Equitable Sharing of Benefits Arising from their Utilization to the Convention on Biological Diversity.

(...) During the 10th Regional Environmentally Sustainable Transport (EST) Forum in Asia, Lao PDR joined Vientiane Declaration on Sustainable Rural Transport towards Achieving the 2030 Agenda for Sustainable Development, expressing its commitment to promote inclusive, affordable, accessible and sustainable rural transport infrastructure and services (...)

There are four major sources of the Official Development Assistance (ODA) for Lao PDR: (…) LDC specific support: EIF, ACWL as well as some UN funds such as the UN Capital Development Fund (UNCDF), the Technology Bank for LDCs, the United Nations Framework Convention on Climate Change (UNFCCC) LDC Fund (LDCF) among others, are LDC specific. (...) The LDCF: The loss of support from this Fund may well be of great importance to Lao PDR given its big exposure to climate change issues. To be able to implement its climate change mitigation measures, Lao PDR will elaborate a clear programme of measures to be submitted to the donors. (...)

(...) Lao PDR also aspires to help ensure sustainable development of the forest sector, stop illegal logging, raise awareness of the benefits of timber legality in the country, enhance transparency and good governance and strengthen existing timber management policies.

Lao PDR works closely with other sectors and local authorities to explore plans and develop visitor attractions in a way that is as sustainable as possible. Tourist sites have been classified into three categories: natural, historical and cultural. So far, 985 sites have been surveyed and identified.