In Vientiane Capital, Lao PDR, on August 16, 2024, the Ministry of Natural Resources and Environment of Lao PDR, together with the Australian Government and the Global Green Growth Institute (GGGI) Lao PDR, met to review the first year of implementation of the Open and Sustainable Carbon Markets in Lao PDR Program. The USD 1.94 million program, financed by Australia through the Department of Foreign Affairs and Trade (DFAT), has been implemented since June 2023.  

The meeting was chaired by H.E. Mr. Phouvong Luangxaysana, Vice–Minister of Natural Resources and Environment, and co-chaired by H.E. Ms. Megan Jones, Ambassador of Australia to Lao PDR, and Mr. Rowan Fraser, Country Representative for GGGI Lao PDR. It brought together key project participants, namely representatives from the Ministry of Natural Resources and Environment (MONRE), the Ministry of Energy and Mines (MEM), the Ministry of Planning and Investment (MPI), the Department of Foreign Affairs and Trade (DFAT) of Australia, and GGGI. 

H.E. Mr. Phouvong Luangxaysana, Vice–Minister of Natural Resources and Environment noted that “this project helps the Government of Lao PDR build a governance framework for carbon credits. This support includes the formulation of the Decree, Strategy and Guidelines on Carbon Credits, and establishing sectoral coordination mechanisms and sustainable participation to international carbon markets.” He further added that the project “promotes carbon finance, facilitates carbon project development and related greenhouse gas mitigation projects in Lao PDR that will contribute to the implementation of the market mechanisms under the Article 6 of the Paris Agreement.”  

The meeting reviewed successes, challenges, lessons learnt and agreed on adjustments to the Program’s structure and deliverables to ensure close alignment with the country’s climate and development plans. Since the program’s launch in 2023, the project has notably supported the development of the Decree on Carbon Credits and trained key officials across the Government of Lao PDR on carbon markets management. The Program is expected to further support the Government of Lao PDR to prepare a carbon markets strategy, multi-sectoral project management guidelines, the establishment of a carbon registry, and regulations and policies in the energy sector. 

H.E. Ms. Megan Jones, Ambassador of Australia highlighted that “the government of Australia is proud to support the Government of Laos to lay a strong foundation for carbon markets here. Establishing a robust governance framework for carbon markets is crucial. This work aligns with Australia’s increased climate ambition at home and globally, to reduce emissions and find economic opportunities in the global net-zero transition.” 

Mr. Rowan Fraser, GGGI’s Country Representative, emphasized the importance of regular engagement with all project participants to ensure high-quality and relevant project implementation: “Today’s event is critical to ensure that we take stock and learn from this first year of implementation. GGGI is committed to providing high quality technical assistance in Lao PDR and meetings such as this provide valuable feedback which GGGI can use to improve its services and support to partners, as we drive climate action through carbon markets.”  

The Open and Sustainable Carbon Market Program is designed to prepare and enhance Lao PDR’s participation in international carbon markets, which are important mechanisms for reducing global carbon emissions. 

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