The project is focused on integrating climate risk and adaptation data and principles into three key sectors of the economy of Lao PDR, namely agriculture and forestry, urban development and transport, and water resources. This will boost the long-term resilience of these sectors. The project is led by the Ministry of Agriculture and Environment, Government of Lao PDR, with technical support from GGGI Lao PDR and financial assistance from the Green Climate Fund. Sectoral ministries and departments of the Government of Lao PDR play a critical role in project delivery, particularly the Ministry of Agriculture and Forestry and the Ministry of Public Works and Transport.

– Strengthen policy, institutions, and systems for participation in international carbon markets
– Build capacity, awareness, research and coordination among market participations
– Enhance the pipeline of carbon sequestration and emissions reduction projects

With the signing of the Paris Agreement in 2016, countries around the world agreed to new provisions for international carbon trading and cooperation. These provisions generate new obligations for countries, such as Lao PDR, who wish to sell carbon credits, as well as for buyer countries and firms. Lao PDR, with its extensive forestry and agricultural resources, has significant potential to sequester carbon and generate emissions reductions, in line with the country’s Nationally Determined Contribution (NDC), which includes conditional mitigation targets that require access to international carbon markets.

In addition, carbon markets can support Lao PDR’s transition to net-zero development by 2050 and broader sustainable development.

– While Lao PDR is not a high-emitter country, it holds significant carbon sinks that need safeguarding. In its 2020 NDC, Lao PDR’s conditional forestry target is set at 70% of the total land area (against 58% in 2020) by 2030.
– In its 2020 NDC, Lao PDR has high conditional targets for energy generation across solar, wind, and biomass, as well as domestic cooking and energy efficiency.
– More generally, Lao PDR needs increased financing in support of its development and climate objectives. Increased flows of carbon finance can help to improve the viability of a range of projects, generating sustainable development co-benefits.

To enhance the development of Lao PDR’s carbon market, and its ability to participate in international carbon transactions, this project is developing a comprehensive framework of carbon legislation, building carbon project management systems and processes, enhancing technical capacity, and stimulating the market with the development of private investment projects.

– 5 carbon policy products developed and adopted by Government of Lao PDR.
– 40 government officials engaged in technical trainings, study tours, and awareness raising.
– 2 national carbon markets forums held for market coordination and activation.
– 3 private carbon investment projects supported onto the market.
– 1 carbon project registry established and operated.

Read and download full project factsheet here: Lao version and English version.