Event participants display manuals detailing the function of the Climate and Sustainable Finance Hub.

Govt, UNDP launch climate, sustainable finance hub to drive LDC graduation

The government has launched a new Climate and Sustainable Finance Hub in partnership with the United Nations Development Programme (UNDP) to strengthen development financing as the country prepares for graduation from Least Developed Country (LDC) status in 2026 amid financial challenges.
The Hub, anchored at the Ministry of Finance, is designed to serve as a technical platform to coordinate reforms, build capacity, and mobilise resources for climate action and sustainable development.
The initiative comes at a critical time, as preliminary assessments supported by UNDP suggest that Laos will require tens of billions of US dollars to finance its development priorities for the 2026-2030 period, with acute gaps in financing climate and human development needs.
To address these gaps, the ministry, in partnership with UNDP, convened on Monday a high-level policy dialogue on ‘the Future of Development Financing in Lao PDR’ and launched the Hub.
The event took place during the visit of the UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific, Ms Kanni Wignaraja.
Deputy Minister of Finance, Phonevanh Outhavong, emphasised how the new platform aligns with the government’s commitment.
“The Lao PDR has made significant progress in sustainable finance as it was one of the first countries in the region to adopt a financing strategy for the 9th National Socio-economic Development Plan (NSEDP) using the international principles of the Integrated National Financing Framework,” she said.
The launch of the Climate and Sustainable Finance Hub and the preparation of the financing plan for the 10th five-year NSEDP for 2026-2030 are crucial measures to leverage and align financing for climate change solutions and human development, she added.
Ms Wignaraja stressed the importance of innovative financing reforms at a time when global aid flows are tightening.
“The global development financing system is being tested like never before. Sharp cuts in official development assistance are projected to reduce aid by 9-17 percent in 2025. On the other hand, global wealth exceeds US$450 trillion, while the financing gap for achieving the Sustainable Development Goals stands at US$4.3 trillion annually,” she said.
“The real task is to see how we transform the way finance is mobilised, allocated, and measured for development impact.”
“In Laos, financing the 10th NSEDP requires bold solutions and a bolder implementation drive. The launch of the Climate and Sustainable Finance Hub is a timely step forward, and UNDP is proud to accompany the government and its partners in this journey.”
The Hub is being established with financial support from the Embassy of Luxembourg and its Ministry of Environment, Climate, and Biodiversity, the Asian Development Bank, and the INFF Facility.
It is expected to play a central role in strengthening governance of Laos’ Integrated National Financing Framework and in unlocking new sources of funding to address pressing climate and development challenges.
The two events, the dialogue and the launch of the hub, brought together senior government officials, development partners, and private sector representatives to discuss priorities for the 10th National Socio-economic Development Plan and review progress on the financing strategy for the 9th NSEDP.

By Times Reporters
(Latest Update September 9, 2025)