Laos Strengthens Climate Agenda Through Carbon Markets and Renewable Energy Development

On September 24 - 25, Laos’ Ministry of Agriculture and Environment hosted the  “Lao PDR Carbon Markets and Clean Energy Conference 2025 in Vientiane. The event brought together representatives from government agencies, development partners, the private sector, civil societies, and regional stakeholders to advance dialogue on accelerating resilience and inclusiveness of energy transition. The conference aimed to enhance cooperation on climate change and develop Laos’ carbon credit trading and energy sector based on the recent adoption of the Carbon Credit Decree. 

Laos has long been recognized for its abundant hydropower resources, positioning the country as one of the cleanest sources of electricity for grids in the region and globally. Continued efforts to promote greater energy diversification are increasing in response to growing domestic demand for energy, regional energy integration objectives, and climate pressures. 

Under the Power Development Strategy, Laos targets increasing variable renewable energy, particularly solar and wind power, to 11 percent by 2030. This goal is a significant step toward enhancing energy system resilience and sustainability, while supporting the country’s long-term economic transformation.

Ms. Santisouk Phimphachanh, Director General of the Department of Policy, Planning and Evaluation at the Ministry of Industry and Commerce, underscored the significance of Laos' clean energy transition. She emphasized that the integration of solar and wind energy, combined with advanced technologies, will not only power homes and industries but also attract investment, create employment opportunities, and enhance the nation’s energy security. Current priorities are focused on establishing a carbon credit trading system, sharing climate adaptation best practices, exploring sustainable financing models, identifying key policies to strengthen the current energy market, and ways forward to ensure a comprehensive transition.