This report finds that Lao PDR has 68 percent of its land covered by forests, significantly higher than the worlds average which stands at 30 percent. As Lao PDR is vulnerable to the impacts of climate change, the sustainable management of this 15.8 million hectares of forests contributes to climate change mitigation as well as improvement of livelihoods of local communities. Mining and hydropower production are becoming the main sources of revenue for the country. With 28 per cent of its population still in poverty, the rich natural capital of the country is not only the key asset towards the countrys ambitious development agenda, but also serves as a safety-net for peoples livelihoods.