(Front row, from fourth left) Mr Jung Yung Soo, Mr Phouvong Luangxaysana, and Dr Kim Jaehong pose for a photo at the KSP programme launch in Vientiane on Wednesday.

S. Korea supports Laos to access carbon market opportunities

Laos will be better placed to benefit from carbon trading opportunities through the Republic of Korea’s Knowledge Sharing Programme (KSP) under a project called “Establishing a Master Plan for Implementing a Carbon Trading System in Laos”.
The fiscal year 2022-2023 KSP programme was officially launched in Vientiane on April 26.
The launch was chaired by KSP Senior Advisor, former President of the Korea Trade-Investment Promotion Agency (KOTRA), and former Vice Minister of Trade, Industry and Energy of the Republic of Korea, Dr Kim Jaehong; the Ambassador of the Republic of Korea to Laos, Mr Jung Yung Soo; and Deputy Minister of Laos’ Ministry of Natural Resources and Environment (MONRE), Mr Phouvong Luangxaysana.
High level officials from Korean and Lao ministries attended a meeting to mark the successful launch of the project.
Participants included the Director General of Development Cooperation of KOTRA HQs, Park Chulho; Director General of the MoNRE Climate Change Department, Mr Syamphone Sengchangdara; Director General of KOTRA Vientiane, Mr Kim Pilseong; and representatives of key players in the energy sector including KOWEPO, EDL-GEN, Phousy Group, Phongsubthavy Group, Chaleurn Sekong, and other entities.
Delivering the opening remarks, Dr Kim Jaehong said “This KSP programme will not only support establishing the foundation of the carbon credit trading system in Laos but also be connected to initiate pilot projects, demonstrating carbon credit trading between the Republic of Korea and Laos.”
“We hope it will ultimately contribute to the social and economic development of Laos,” he added. KOWEPO-Lao International, the operator of Xe-Pian Xe-Namnoy power plant, will officially collaborate with the KSP team to demonstrate a carbon credit pilot project in the renewable energy sector.  Mr Kim Byung chol said “With the condition of trading carbon credits, small and mid-sized hydropower and solar power development are also attractive in Laos”
Mr Jung Yung Soo added “The Korean government has launched the Korea-Asean Solidarity Initiative(KASI), a platform to develop economic interchange between the Korea and Asean members. One of key agenda of KASI is to enhance collaboration in climate change response”
“I hope this KSP would actualise frameworks to structure carbon credit trading between two nations,” he said.
Mr Phouvong Luangxaysana said carbon trading is a very new area for Laos but the country has many projects that can generate carbon credits for international trade.
“The KSP project started at the right time and it will open up opportunities for Laos and Korea to strengthen bilateral cooperation in greenhouse gas emission reduction actions,” he said.
“We are willing to cooperate closely with Korea in developing the Carbon Credit Trading Platform to achieve Laos’ goal of net zero greenhouse gas emissions by 2050 and encourage Korean companies to participate in GHG reduction projects in Laos,” he added.
The KSP programme will provide policy advisory, methodology and implementation plans to build an applicable carbon trading system in the short term and to establish a long-term carbon trading platform in Laos. It will also provide capacity building sessions in Korea to enhance the capabilities of officials from the MoNRE and other Ministries. Korean Management Association Consulting(KMAC), a KSP consulting team from Korea, is selected to execute this program and it will be completed by October this year. Mr Kim Pilseong said “As of today, Korean investors in the energy sector, mostly sizable enterprises eligible to enter overseas markets, are mainly interested in scalable projects.”
“If Laos can offer carbon credit trading with potential investors, more and more companies show interest in developing not only big projects but diverse projects in the renewable energy segments.” he said.
The KSP programme is a one-year grant programme funded by the Ministry of Economy and Finance of the Republic of Korea and coordinated by  KOTRA, sharing Korea’s development experience and knowledge with partner countries for their institutions and capacity building.

By Times Reporters
 (Latest Update May 2, 2023)