Vientiane Capital, Lao PDR, March 3^rd, 2025 – The Lao government, through the Department of Energy Efficiency and Promotion (DEEP) of the Ministry of Energy and Mines (MEM), has initiated the process to promote carbon market opportunities in the energy sector. In collaboration with the Global Green Growth Institute (GGGI) Lao PDR and with support from the Australian Department of Foreign Affairs and Trade (DFAT), this initiative seeks to unlock the sector’s potential for international carbon markets and ensure that carbon market priorities for the energy sector are aligned with the Lao government’s third Nationally Determined Contribution (NDC 3.0) to the Paris Agreement.

The meeting, attended by essential government agencies, development partners, and private sector representatives, was a platform to share perspectives and exchange ideas. The sessions focused on how the energy industry can leverage carbon markets to attract investments, the market sentiment among private-sector carbon project developers, and the key steps that need to be taken to ensure policy alignment.

The discussion primarily centered around the integration of NDC 3.0 with carbon policies and frameworks currently being developed in Lao PDR. This includes the development of regulations, strategies, guidelines, and a pipeline of carbon projects in line with Lao PDR’s climate goals. Coordinating these efforts with both national and international climate policies is crucial for enhancing credibility in the global carbon market. This gathering was held as part of the preparatory tasks and signified an important advancement in implementing carbon market mechanisms within the energy sector in Lao PDR. It emphasized the Government of Lao PDR’s commitment to address climate action and foster public and private sector engagement in sustainable energy development.

The initiative builds upon the momentum created by the First National Carbon Markets Forum held in September 2024, which brought together key stakeholders to foster Lao PDR’s participation in international carbon markets. This recent meeting, co-chaired by Mr. Chantho Milattanapheng, Director General of DEEP, Ms. Eva Diaz Ugena, Deputy Country Representative of GGGI Lao PDR, and Ms. Benita Sommerville, Deputy Head of Mission, Australian Embassy to Lao PDR, gathered over 50 participants from government agencies, development partners, and the energy private sector.

“Engaging with carbon markets is critical to achieve sustainable development and a low-carbon future for Lao PDR. The Ministry of Energy and Mines is working towards developing the sectoral carbon policy. It is keen to ensure this policy is aligned with the NDC 3.0 for the energy sector. We recognize that these markets provide a platform for the country to attract green investments, foster innovation in renewable energy technologies, and enhance the resilience of our economy.”, addressed Mr. Chantho Milattanapheng, Director General of DEEP.

“Climate change is at the heart of Australia’s international development policy. We acknowledge that climate change is the greatest shared threat to all countries. This workshop builds on what we have been doing with the Government of Laos and GGGI to help the energy sector tap into carbon market opportunities,” stated Ms. Benita Sommerville, Australia’s Deputy Head of Mission to Lao PDR.

“GGGI is proud to be the lead agency supporting the Lao government in establishing its carbon market governance framework, aligning it with the preparation of the 3^rd NDC, and operationalizing the carbon market decree. We look forward to continued collaboration with the government, development partners, and the private sector to develop an ambitious NDC 3.0 for the energy sector that facilitates the flow of finance and accelerates Lao PDR’s transition to a sustainable, low-carbon energy future.”, stated Ms. Eva Diaz Ugena, Deputy Country Representative of GGGI Lao PDR.