Laos moves forward with plans to sell carbon credits

The Ministry of Agriculture and Forestry Laos has issued a Decision concerning forest carbon management, with the aim of increasing investment opportunities and the sale of carbon credits on the international market.

A forested area in Laos.

The Decision defines the principles, regulations and measures on forest carbon sequestration to create readiness for investment, market access, and cooperation in multilateral projects.
Investment in partnership with the state is envisaged, which will ensure that forests are protected and properly managed.
The planting of more trees will be encouraged alongside forest restoration, to generate more income both directly and indirectly and contribute to national socio-economic development.
Forest carbon management includes the management of activities related to carbon credit marketing, and development and implementation of government policies on social and environmental protection.
The distribution of benefits will take place in accordance with international standards as well as the laws and regulations of Laos.
The World Bank has committed a budget of about US$42 million under the Forest Carbon Partnership Facility to purchase carbon credits from Laos from 2020 to 2025.
The Bank’s initiative aims to reduce carbon emissions released into the atmosphere, one of the main causes of global warming and extreme weather patterns around the world.
Developing, developed nations and major corporates have agreed to buy carbon credits from countries as part of their social business responsibilities.
Lao forestry officials say the government is strongly committed to protecting forests and hopes to earn income from sale of carbon credits, but that challenges in protecting natural habitats remain unresolved.
One of the key challenges is poverty among communities living in and around designated forest areas, which makes it difficult for the authorities to enforce the law concerning forest protection.
In addition, the capacity of authorities to protect forests must be strengthened so they can effectively protect forest areas designated for the carbon credit scheme, which cover about 35 percent of the country’s total land area.
In order to protect forest areas, the government will use money earned from the sale of carbon credits as well as funds sourced from development partners to reduce poverty in designated areas.

By Times Reporters
 (Latest Update October 3, 2024)