Since 2018, the Global Green Growth Institute (GGGI) has been supporting the Lao People’s Democratic Republic (Lao PDR) in its Electric Vehicle (EV) deployment plans. This document has been developed under the guidance of GGGI and involved a consortium led by Emergent Ventures India to provide guidance to the Ministry of Public Works and Transport (MPWT) and help formulate a regulatory framework for EVs in Lao PDR. The framework document includes EV policies and technical standards, along with incentive mechanisms, to ensure successful deployment of EVs in the country.

EVs offer a great opportunity for Lao PDR to initiate transformations in the transport sector and address several challenges faced by the country. EVs will result in reduced fossil fuel demand and can thus, help control the country’s rising trade deficit, which was US$163.95 million in the second quarter of 2019 (Trading Economics 2019a). EVs will also help decarbonize the country’s economy. The cumulative value of fossil fuel imports that can be avoided during 2020-2030 due to EVs is estimated to be US$2.3 billion, and the cumulative greenhouse gas reduction is estimated to be 422,000 tons of carbon dioxide emissions. In fact, reductions can be as high as 5.39million tons of carbon dioxide emissions if the electricity to charge EVs is sourced from hydroelectricity plants.

The impending domestic power generation surplus in the country (expected in the coming years) can be profitably utilized locally if EVs are deployed on a large scale. Further, EVs can support the country’s renewable energy programs if renewable energy sites are paired with EV charging. The introduction of EVs in the country will result in additional demand for electricity (estimated at 2,000GWh in 2030), thus the electricity sector utilities will witness a rise in revenue. This gain is estimated to be US$518 million during 2020-2030. This is also an opportunity for the country to introduce sector-wide growth accelerators to improve transport sector efficiency and standardization and introduce regional vehicle sector harmonization.