Vientiane, Lao PDR, August 9, 2024 – The Global Green Growth Institute (GGGI) together with the Bank of Lao PDR (BoL) organized a capacity building seminar focused on carbon markets, the Article 6 of the Paris Agreement, and implications for the financial sector. The Paris Agreement’s Article 6 provides an overarching framework for international cooperation for the achievement of national and global emissions reductions goals. The event was delivered under the program for Open and Sustainable Carbon Markets in Lao PDR funded through the support from the Department of Foreign Affairs and Trade (DFAT) of the Government of Australia. Participants included staff from the financial sector (Bank of Lao PDR and Lao commercial banks) and from the Ministry of Natural Resources and Environment (MoNRE).

As part of Lao PDR’s preparations for participation in international carbon markets, various sectors of the Lao economy have expressed their interests in improving their understanding of carbon finance. This capacity-building seminar was designed to provide professionals from the financial sector with a deeper understanding of carbon markets. BoL and the financial sector will play a key role in ensuring the financial viability of carbon projects, mitigate financial risks, provide investment oversight, and manage foreign exchange.

“Carbon markets are new and challenging for the sector,” stated Madam Khankeo Lamaningao, Deputy-Governor of the BoL. “It is important to increase the financial sector’s understanding of carbon markets specificities and trends to fully realize their potential in reducing emissions in Lao PDR,” Madam Lamaningao further emphasized.

Mr. Dan Heldon, Australia’s Deputy Ambassador to the Lao PDR, highlighted that “high-integrity and high-quality carbon projects can significantly contribute to the people of the Lao PDR. Strategic participation in carbon markets will not only help the country to achieve its climate commitments, but can also deliver on clean air, green jobs, and broader socio-economic development”.

Mr. Rowan Fraser, Country Representative from GGGI Lao PDR, further explained: “realizing the opportunities that carbon markets offer in terms of emissions reductions and green growth requires coordinated, multi-sectoral, and multi-stakeholder preparation. GGGI is providing comprehensive support to the Government of Lao PDR and is proud to support the financial sector within the Program for Open and Sustainable Carbon Markets.”

The Open and Sustainable Carbon Markets program is under implementation since June 2023 by the Government of Lao PDR with technical assistance from GGGI. GGGI has supported the Government of Lao PDR to strengthen governance of the country’s carbon market, build capacity of line ministries, and enhance private sector participation. Interventions to date include the formulation of the Decree on Carbon Credits, by the Department of Climate Change.

Learn more about: Open and Sustainable Carbon Markets Program in Lao PDR
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