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Laos and Australia Partner GGGI to Foster Sustainable Carbon Markets

Source: The Star

The governments of Laos and Australia, together with the Global Green Growth Institute (GGGI), have formed a partnership to support carbon market development in Laos.

An agreement on the initiative was signed in Vientiane this week to mark the official start of the “Programme for Open and Sustainable Carbon Markets in Laos”.

This programme, supported by the Department of Foreign Affairs and Trade, through the Australian Embassy in Vientiane with an investment of AUD2.6 million over three years, highlights the shared commitment of the governments of Laos and Australia to drive sustainable development and address climate change through market mechanisms, in alignment with Article 6 of the Paris Agreement.

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The programme will be led and coordinated by the Ministry of Natural Resources and Environment.

According to the GGGI, the programme aims to establish a coordinated multi-sectoral policy framework for carbon markets in Laos.

This framework will strengthen the domestic carbon market while also enabling sustainable participation in international carbon markets.

By enhancing policy, institutions, systems and infrastructure for carbon market management, Laos will be better equipped to actively engage in the global carbon market.

“Australia is proud to be supporting the Lao government in this important sector,” said the Deputy Ambassador at the Australian Embassy, Mr Dan Heldon.

“The programme further demonstrates the strengthening of relations between our countries, as outlined and confirmed by our Ministers for Foreign Affairs last month,” he said.

A key aspect of the programme is the enhancement of Laos’ pipeline of carbon sequestration and emissions reduction projects. By bolstering these projects, the partnership will create avenues for increased private sector and community involvement in carbon opportunities.

“Currently, there is some uncertainty around how firms, project developers and communities can access the carbon market,” said the Country Representative of the GGGI to Laos, Mr Rowan Fraser.

“Under the leadership of the Ministry of Natural Resources and Environment, the programme will bring a lot more clarity and certainty in terms of the regulatory and institutional regime.”

As a result of the “Programme for Open and Sustainable Carbon Markets,” Laos will be better positioned to engage and participate in international carbon transactions under Article 6 of the Paris Agreement.

This will help to secure vital carbon finance, advance green and low-carbon investment, stimulate climate ambition and action, and generate socio-economic co-benefits for Laos.