Status of JCM implementation and Article 6 under Paris
Agreement readiness for Lao PDR

Mr. Bounthee Saythongvanh,
Deputy Director Division, Department of Climate Change, MONRE
Lao PDR

Date 22 August 2023

Outline:

JCM Implementation in Laos;
Arrangements for Paris Agreement Under theArticle 6;
Way towards.

11. JCM Implementation in Laos
• Signed MOU between Laos-Japan on JCM on August 7th, 2013;• Establish Joint Committee (JC) on JCM in 2014;

JCM Institutional Arrangement
JCM Joint CommitteeJapan• Embassy of Japan in Laos
• Ministry of Foreign Affairs• Ministry of Economics, Tradeand Industry• Ministry of Environment• Forest Agency

Members

Laos• Ministry of Natural Resources and Environment• Ministry of Agriculture and Forestry• Ministry of Energy and Mines• Ministry of Public Works and Transport• Ministry of Technology and Communication• Ministry of Industrial and Commerce• Ministry of Public Health• Lao Women Union

Secretariat

2

JCM projects in LaosNo.

Project NamePartners

1

Lao Energy
Efficient Datacenter” (LEED)

2

Introduction of- TSB Co.,
14 MW floatingLtd.
solar power- TPG Laosystem inCo., Ltd
Vientiane Capital - EDL

3Introduction of- Yuko Keiso Nationwide PowerAmorphous HighCo. Ltd.
Grids in Laos
Efficiency- EDL
Transformers inPower Grid

14.069 ton
CO2e / year

411 MW Solar
Power Project in
Savanakhet
Province

4.784 tonCO2e / year

- NEDO- MOST- Sharp
EnergySolutions- Khounxay
Group- EDL

Location

Estimatedemission
reduction

Dongmakkai village,
Xaythany District,
Vientiane

207 tonCO2e/year

Nongheo Village
Hatxayfong District,
Vientiane Capital,
Lao PDR

6.838 tonCO2e / year

Savanakhet Province

3

JCM projects in Laos (Con’t)No.

ProjectNamePartners

Location

Estimatedemission
reduction

5JCM REDD+ - Waseda
University- NAFRI

Luangprabang
Province

140.000
CO2e / year

614 MW Solar - Kayama
Vientiane Province 6.838 ton
PowerKogyo Co., and Borikhamxay CO2e / year
Project inLtd.
Province
Vientiane- NAWADE
Province andE GREEN
Borikhamxay
ENERGY
Province
Co., Ltd

719 MW Solar - Liberal
PowerSolution
Project inCo., Ltd
Xiengkhuang
Province

Xiengkhuang
Province

9.280 tonCO2e / year4

2. Arrangements for Paris Agreement
Policies:
Laos has established a comprehensive policy framework
to respond to the challenges of climate change and tofoster national development priorities as well as a low
carbon development pathway and key policies are:
• The 9th National Social Economic Development Plan;• The National Strategy on Climate Change up to 2030;• The National Green Growth Strategy up to 2030;• The Climate Change Decree, approved in 2019;• The 2nd NDC, approved in 2021;• The LT-LEDS strategy and implementation roadmap,
whichiscurrentlydevelopment).

underdevelopment(under52. Arrangements for Paris Agreement (Con’t.)
The key sectors for developing mitigation project in Laos:➢ AFOLU:• Increase the forest cover to 70% of land area (16.58million hectares) as a place toabsorb GHGs to reduce the degradation of forests, promote forest conservation,sustainable forest management;➢ Energy:•••

Increase hydropower production to 12,000 MW in 2025, and 20.000 MW in 2030;
Increase the renewable energy such as solar and wind energy to 1000 MW in 2030;
Increase biomass energy production to 300 MW by 2030, and reduce energy use by10%;➢ Transportation:•

Increase the use of electric vehicle for motorcycles and cars to 30% compared to thetotal number of vehicles, and increase the share of biofuels to meet 10% of thedemand for transport fuel.

➢ Waste Management• Increase efficiency of the waste management system and transforming thewaste to energy.

6

2. Arrangements for Paris Agreement (Cont.)
The key challenges:
1. Limited regulatory framework to participate in carbon
trading under the Paris Agreement;
2. Limited institutional capacities and cross-sectoral
coordination for mainstreaming climate change
mitigation into development plans;
3. Incomplete and unclear system of registration, database,monitoring, verification, and reporting;
4. Lack of introduction to the procedure and guidelines
and consideration of carbon credit buying and sellingmechanism under the Article 6.
72. Arrangements for Paris Agreement (Cont.)
Capacity building and needs:
1. Identifying appropriate mitigation activities for initialArticle 6 trade and capacity building on Article 6 forthe government and other stakeholders;
2. Developing guidelines for mitigation activity design
documents (MADD);
3. Establishment government framework for article 6;
4. Development of emission balances-corresponding
adjustments;
5. Seeking additional funding to support low-emissions
development to achieve the Nationally DeterminedContributions (NDC) targets, and finance climate
mitigation.

83. Way towards
1.

The MONRE, as the national focal point for climate change, will continue to strengthen
cooperation and engagement with national stakeholders and relevant international organizations,as well as businesses and the private sector.

2.

The Lao PDR will shortly start constructing the administrative framework for the Article 6 withfinancial support by the Australian Government;

3.

Developing the Decree on Carbon Credit Trading Management and the Decree on National
Climate Change Committee in accordance with the notification of the Prime Minister Office, No.
426, dated March 17, 2023;

4.

Developing the national registry for carbon credit to projects in Lao PDR;

5.

Assessment for designing the government frameworks for article 6 and criteria of article 6activities;

6.

Continue to disseminate information on JCM especially carbon credit mechanism throughorganizing workshops and continue supporting and facilitating the government and private
sectors to develop the JCM projects in potential sectors.

7.

Continue to facilitate and cooperate with JC members to consider approving proposed JCM
projects in Laos.

9Thank you very much foryour attention