UNDP has supported the Government of Lao PDR to develop a comprehensive Circular Economy Strategy through its NDC Support Programme for an enhanced Paris pledge or Nationally Determined Contribution (NDC) and an ambitious Long Term Low Carbon Development Strategy up until 2050. The analysis concluded that if the circular economy strategies NDC are adopted and implemented from March 2021, Lao PDR could reach net zero by 2040. By moving towards a circular economy, Lao PDR is pursuing the objective of reducing global greenhouse gas (GHG) emissions, while securing the growth that will allow the country to build up its material ‘stock’ of produced goods to meet societal needs. The transition to a circular economy involves a fundamental change in the current economic model: shifting to a system where materials are used in such ways that they can be cycled indefinitely and on the smallest scale possible, durable products are designed to last longer and used more intensively, and development and well-being are decoupled from the exploitation of natural resources. This makes it possible to reduce emissions while supporting prosperity for current and future generations alike. The circular economy strategy lists 17 interventions to support the mitigation and sequestration of GHGs. While some interventions target to establish an enabling environment, eleven of them directly intervene in the country’s resource flows and prioritize secondary and regenerative resources over the use of finite resources. The most promising intervention out of the 17 is in wood-based construction. According to the analysis, this single intervention can create close to 1.0 million jobs, contribute $12 billion to the GPD of Lao PDR and reduce GHG emissions by 48 MtCO2e/year by 2050. Buildings can become a net carbon sink rather than a net source of greenhouse gas emissions when using sustainable materials, such as products based on wood, latten, bamboo, soil, algae, etc, instead of cement and steel as the main construction materials. It is also expected to improve building livability, contribute to people’s well-being, and support national and cultural identity. Developing a well-managed value chain for sustainable construction materials can build upon existing companies and initiatives. Lao PDR currently produces 8.5 million tonnes of wood products per year, out of which 1.2 million tonnes are used in the construction and furniture sector. If its untapped potential is realized through value addition, including certification of sustainable life-cycle management, innovation, and marketing, the country has the opportunity to expand and adsorb its domestic demand for sustainable construction materials and respond to the increasing global demand. OBJECTIVE The objective of this assignment is to develop a full project document of a new project to promote sustainable construction in Lao PDR, such as developing or improving regulations and policies, certification systems, financing mechanisms, life-cycle management from sourcing to disposal, innovation, and domestic and export market promotion. The project document should include scientific justifications of the strategy, analysis of the examples from the leading countries in sustainable construction, project budget, monitoring & evaluation, project management, and risk analysis and management.
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