The study aims to support the Government of Lao PDR in designing a policy mechanism for the phase-out of Internal Combustion Engine Vehicles (ICEVs). The report highlights the current state of transportation and vehicle statistics in Lao PDR, the country’s efforts towards sustainable growth, and its commitment to reducing greenhouse gas (GHG) emissions. It provides a detailed set of policy mechanisms that can be implemented in order to effectively phase out ICEVs and to achieve the EV targets for 2030 and Net Zero target for 2050. It also details the impact of policy measures on the reduction of GHG emissions and air pollutant emissions.