S. Korea, Laos strengthen ties in carbon emission trading

The Final Reporting Workshop of the 2022/23 Knowledge Sharing Programme “Establishing a Master Plan for Implementing a Carbon Trading System in Laos” was held in Vientiane on October 5.
The event was chaired by the Programme’s Senior Advisor, former President of KOTRA, and former Vice Minister of Trade, Industry and Energy of the Republic of Korea, Dr Kim Jaehong.
The seminar was co-hosted by the Ministry of Economy and Finance of the Republic of Korea and the Ministry of Natural Resources and Environment of Laos, and was organised by the Korean Trade-Investment Promotion Agency (KOTRA).

Dr Kim Jaehong (left) and Mr Syamphone Sengchandara address the seminar.

Those attending the seminar included senior officials from the Republic of Korea and Lao ministries, to review the final report and share opinions.
They included the Director General of the Development Cooperation of KOTRA HQs, Dr Chulho Park; Director General of KOTRA Vientiane, Mr Kim Pil Seong; First Secretary, Embassy of the Republic of Korea, Ms Park Soung In; Director General of the Climate Change Department, Ministry of Natural Resources and Environment, Mr Syamphone Sengchandara; and Director General of the Trade Promotion Department, Ministry of Industry and Commerce, Mr Xaysomphet Norasing.
Representatives of ministries and private entities including KOWEPO, EDL-GEN, Nam Theun 2 Power Company, Phongsubthavy Group, and AIDC also attended the seminar.
Speaking at the seminar, Dr Kim Jaehong said “This Knowledge Sharing Programme will serve as a starting point for revitalising carbon emissions trading between Korea and Laos in the future.
Renewable energy development, REDD+, EV infrastructure construction and other development sectors will be based on the promise of securing carbon emissions rights. We hope that this will serve as an opportunity to expand business and strengthen cooperation between our two countries.”
Various policies, roadmaps and action plans were suggested by KMAC, a Knowledge Sharing Programme research team.
A consultant from the Energy and Climate Department of KMAC, Ms Park Si Yeong, said Laos had mainly focused on climate change ‘adaptation’ policies, before fully implementing emission trading, and it is essential to strengthen capabilities by piloting Korea’s GHG target management system.
Mr Son Seung-wook from the Energy & Climate Department at KMAC said “It is essential to establish a National Greenhouse Gas (GHG) emission inventory before implementing a carbon credit trading system. It typically requires a significant amount of time to complete, as exemplified by Korea, which took 10 years to accomplish this task. It also required a solid legal foundation. It is essential to enact appropriate laws and regulations that support the national GHG inventory and its related regulatory systems.”
Deputy Director General of the Planning and Finance Department, Ministry of Natural Resources and Environment, Mr Soumadeth Soukchaleun, said “The master plan has a meaningful impact on climate change management in Laos as it aligns with the government’s strategy on GHG gas mitigation. By implementing the master plan, it is believed that the goals outlined in Laos’ National Green Growth Strategy to 2030 will be fulfilled.”
During the discussion session, the Vice President of Kowepo, Mr Jeong Han Woo, said the company is currently operating renewable energy projects as defined in the master plan.
When the master plan is implemented, Kowepo is ready to participate in bilateral cooperation for carbon credit trading between Laos and Korea, with the aim of mutually supporting each other’s development efforts.
Director General of the Climate Change Department at the Ministry of Natural Resources and Environment, Mr Syamphone Sengchandara, said the proposed roadmap to establish the Master Plan on Carbon Credit Trading in Laos will be interconnected and linked together with the master plans of each sector including REDD+, energy and transport, and others to foster collaboration among line ministries.
The proposed roadmap advises that a climate change law be enacted as a foundation for implementing the master plan and the importance of data collection and management mechanisms, including data verification and inspection systems.
Director General of KOTRA Vientiane, Mr Kim Pil Seong, said “It is meaningful that all stakeholders related to the climate change response gathered to discuss a new direction. It might be early to adopt the carbon emission trading system, but such an ecosystem will surely be supportive to bring more foreign direct investment in green growth sectors in Laos in the long term.”
The Knowledge Sharing Programme is funded by the Ministry of Economy and Finance of the Republic of Korea, and coordinated by KOTRA to share Korea’s development experience and knowledge with partner countries for their institutional and capacity building.

Participants gather for a photo at the carbon trading seminar in Vientiane last week.

By Times Reporters
 (Latest Update October 13, 2023)