Vientien, Lao PDR – 14 September 2023 – The Ministry of Natural Resources and Environment officially launched its new “Program for Open and Sustainable Carbon Markets in the Lao PDR”, in partnership with the Government of Australia and the Global Green Growth Institute (GGGI). The inception workshop successfully gathered representatives from across the Government of Lao PDR, development partners, and the private sector to kick-off the program, raise awareness on its objectives and planned activities, and on the role of carbon markets and credits in the climate and development agenda of Lao PDR more generally.
The AUD 2.6 million (USD 1.7 million) program, financed by Australia’s Department for Foreign Affairs and Trade, will be implemented during 2023-2026. Through the program, the Government of Lao PDR will put in place the policy, regulatory and institutional framework required to boost and properly manage the country’s market for carbon credit trading. This will improve the regulatory environment for carbon projects, increase institutional and procedural clarity, reduce carbon project review and approval processing times and stimulate market activity. As part of this, the project will also build human and institutional capacity and support the development of a carbon project pipeline in Lao PDR.
One of the main objectives of the program is to establish a cross-sectoral legal and policy framework that can facilitate the international trading of high-quality greenhouse gas emission reduction outcomes, and attract climate financing to Laos.
The Vice-Minister of Natural Resources and Environment, H.E. Mr. Phouvong Luangxaysana, thanked the Government of Australia and GGGI. He further emphasized the role of a planned national decree on carbon markets, which should be developed by the end of the year through this Program: “this Decree, upon completion, will act as a legal framework to regulate the carbon market transactions in Lao PDR to be centralized, organized, clear, transparent, and easier to be understood”. This regulatory clarity should foster private sector investment in mitigation activities. Vice-Minister Phouvong also emphasized the importance of cross-sectoral collaboration through the Program, calling for “good cooperation and support from all relevant line ministries at the central and local levels to exchange the information, lessons learned, and experiences with each other”.
Mr. Dan Heldon, Charge d’Affaires, Australian Embassy in Vientiane, said “Australia is pleased to be supporting the Lao Government to achieve sustainable development and our shared goal of net-zero emissions by 2050. With the rapid growth in carbon markets, the development of policy frameworks and regulations will enable Laos to capitalize on the benefits provided by international carbon markets, while accelerating climate action.” Under Article 6 of the Paris Agreement countries can collaborate to achieve higher national and global climate ambition by trading mitigation outcomes – previously known as emissions reductions.
“Around the world, GGGI is supporting member governments to create open, sustainable and inclusive carbon markets, and we are pleased to channel this global expertise and experience into Lao PDR,” said Mr. Rowan Fraser, GGGI Country Representative to the Lao PDR. “We see carbon finance as an important enabler of climate action, and through this project we will support the Lao PDR’s ability to tap into global carbon financing opportunities.”
