The representatives of the Government of Laos and various stakeholders take a group photo at the workshop.

Government of Laos holds multi-stakeholder consultation on draft Decree on Carbon Credits

The Ministry of Natural Resources and Environment (MoNRE) of Laos, the Global Green Growth Institute (GGGI) and the Government of Australia on Monday held a multi-stakeholder consultation on the draft Decree on Carbon Credits in Laos.

Mr Phouvong Luangxaysana (centre), Mr Dan Heldon (on the left) and Mr Rowan Fraser chaired the workshop.

The event brought together representatives of development partners, non-governmental organisations and private sector entities with an interest in the benefits of carbon credits and markets to support the Lao PDR set its Nationally Determined Contributions and global climate ambitions.
The Government of Laos has been working since October 2023 to prepare a Decree on Carbon Credits, following the Prime Minister’s instructions to regulate their management and trade in Laos. GGGI provides technical assistance to the Government of Laos under the Programme for Open and Sustainable Carbon Markets, financed by the Government of Australia.
The Deputy Minister of Natural Resources and Environment, Mr Phouvong Luangxaysana, opened the workshop by saying that “the Decree on Carbon Credits is an important legislation and Laos can gain benefits from participating in carbon trading, through promoting investments that can achieve emission reduction or sequestration that can generate and sell carbon credits”.
He further highlighted, “Laos will be able to centralise and ensure the transparency and management of the carbon trading system, which can be a critical tool for the Government to manage domestic and international carbon trading effectively in the future.”
The Deputy Ambassador of Australia to Laos, Mr Dan Heldon, emphasised “the critical role played by this multi-stakeholder consultation to ensure the Decree is well aligned with international standards and allows for high-quality carbon trading that delivers real and verified emission reductions”.
The Director General of Climate Change Department, Mr Syamphone Sengchandala, presented the process for formulating the Decree on Carbon Credits, which was first prepared by the MoNRE in March 2024 and was followed by internal consultations and discussions with key sectors in all 18 provinces in April 2024. Inputs received during these discussions led to the preparation of a second draft.
The Deputy Director General of the Office, MoNRE, Mr Bounlath Vorachit, presented the contents of the current draft, which contains a total of 47 articles in 12 chapters. The draft regulates types of carbon credit trading activity; the registration requirements and approval process; the benefit-sharing mechanisms; fees and taxation mechanisms; and the rights, responsibilities and obligations of project developers and Government agencies at the central and local levels.
The consultation addressed issues related to processes for the registration and management of carbon projects, the rights and responsibilities of project owners, and the alignment of the current Decree with the Paris Agreement.
The Country Representative for GGGI, Mr Rowan Fraser, noted: “Once the decree is in place, we hope that it can facilitate Lao PDR’s ability to participate in international carbon markets, including through bilateral cooperation with buyer countries under the Paris Agreement.”
The inputs collected during the multi-stakeholder consultation will be used to further improve the draft Decree. The MoNRE is planning to hold additional working sessions with members of the drafting committee and aims to finalise the Decree on Carbon Credits by June 2024.

By Times Reporters
 (Latest Update May 14, 2024)