Mobilising Finance for Forestry - SCALA Carbon

The SCALA Lao PDR project aims to restore degraded landscapes and build a commercially viable nature-based business model through sustainable forestry and high-integrity carbon markets in Lao PDR. 

Supported by USD 2 million from FMO's Mobilising Finance for Forests (MFF) Capacity Development Programme and complemented by a EUR 303,000 grant from the Dutch Fund for Climate and Development (DFCD), the two-year project supports the expansion of agroforestry and reforestation operations, strengthens carbon asset development, and prepares SCALA for future commercial investment and long-term financial sustainability. SCALA Lao PDR is the lead implementing partner, while SNV acts as Grant Manager, responsible for fund administration, monitoring, coordination, and reporting.

In Lao PDR, decades of slash-and-burn agriculture have contributed to deforestation, biodiversity loss, and land degradation. Restoring these landscapes at scale remains challenging due to historical land-use pressures, limited access to long-term finance, and the significant upfront investment required to develop high-quality carbon projects.

At the same time, global demand is increasing for carbon credits that deliver credible climate, biodiversity, and community benefits. This creates an opportunity to channel investment into restoration initiatives that generate both environmental outcomes and sustainable revenue streams.

The project supports the restoration of degraded landscapes in Lao PDR through sustainable forestry, biodiversity conservation, and carbon finance. SCALA will expand agroforestry and reforestation activities by more than 600 hectares while advancing a large-scale Afforestation, Reforestation and Revegetation (ARR) carbon project. 

The project will also strengthen biodiversity conservation through a restoration landscape adjacent to the Hin Nam No National Protected Area and enhance environmental and social governance through improved risk management, stakeholder engagement, and benefit-sharing frameworks. Climate, Community & Biodiversity (CCB) and Sustainable Development Verified Impact Standard (SD VISta) certifications will further strengthen climate, biodiversity, and community outcomes.

The project is expected to:

• Restore degraded landscapes and expand sustainable forestry practices.
• Develop an investment-ready carbon asset capable of generating future carbon revenues.
• Strengthen biodiversity conservation and community benefits through inclusive and equitable approaches.
• Demonstrate how blended finance and carbon markets can mobilise private investment for large-scale landscape restoration.

Together, these efforts will help establish a scalable model for nature-based investment in Lao PDR, delivering lasting climate, biodiversity, and livelihood benefits while strengthening the business case for restoration. SNV, as Grant Manager, will serve as an independent steward of the funding, providing oversight, risk management, and transparent reporting to support investor confidence and informed decision-making.