March 5, 2025
VIENTIANE – The Ministry of Energy and Mines is working with international partners to develop carbon market opportunities in Laos’ energy sector, aligning with the country’s third Nationally Determined Contribution (NDC 3.0).
The Department of Energy Efficiency and Promotion is leading efforts to establish policies and frameworks that will allow the energy sector to benefit from carbon trading.
This includes developing regulations, strategies, and a pipeline of projects that meet Laos’ climate targets.
A workshop in Vientiane on March 3 brought together government officials, private sector representatives, and development partners to discuss investment opportunities and the role of carbon markets in supporting renewable energy.
The event was co-hosted by the ministry, the Global Green Growth Institute (GGGI), and the Australian Department of Foreign Affairs and Trade. It follows the First National Carbon Markets Forum held in September 2024, which laid the groundwork for Laos’ engagement in international carbon markets.
The workshop highlighted the need to align national carbon policies with international frameworks to boost Laos’ credibility in the global carbon market. Participants discussed key steps to advance the sector, including policy development and private sector engagement.
Director General of the Department of Energy Efficiency and Promotion, Mr Chantho Milattanapheng, said carbon markets could attract green investment, encourage innovation in renewable energy, and strengthen the economy.
“Engaging with carbon markets is essential for sustainable development and a low-carbon future. The ministry is committed to ensuring that sectoral carbon policies align with NDC 3.0,” he said.
Australia’s Deputy Head of Mission to Laos, Ms Benita Sommerville, said climate change was central to Australia’s international development policy.
“This workshop builds on our cooperation with the Lao government and GGGI to help the energy sector tap into carbon market opportunities,” she said.
Deputy Country Representative of GGGI Lao PDR, Ms Eva Diaz Ugena, said GGGI was committed to supporting the Lao government in setting up its carbon market framework and implementing 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 Laos’ transition to a sustainable, low-carbon energy future,” she said.
Beyond energy, the government is also advancing carbon credit initiatives in forestry and agriculture, using satellite remote sensing to enhance carbon accounting accuracy in nine forest areas covering 170,556 hectares.
A feasibility study led by the Ministry of Agriculture and Forestry was launched in Vientiane on January 8, with project certification expected by the third quarter of 2025.
The initiative, supported by Carbon Registry Thailand Co., Ltd. and Carbon Credit Lao Co., Ltd., aims to enhance carbon accounting accuracy and attract international investment in carbon trading.
The Lao government has been promoting investment into carbon credit, an area of potential. With the vision of increasing forest cover to 70 percent of Laos’ total land area of 236,800 square kilometres, it is an opportunity for investment in forest protection and rehabilitation to absorb carbon dioxide and boost carbon credit trade.