Arya News - The two-year initiative is rooted in the 9th National Socio-Economic Development Plan Financing Strategy, endorsed by the Prime Minister, and prioritises green and climate finance as a central pillar of Laos’s development agenda.
VIENTIANE – The Lao government in partnership with the United Nations system, and with the support of the Luxembourg government, has launched a green and climate finance programme to advance sustainable development and resilience.
The launch took place in Vientiane on Tuesday, with the initiative aimed at steering the country’s economic transformation toward sustainability, resilience, and inclusivity.
The programme agreement was signed between Deputy Minister of Planning and Investment, Mrs Phonevanh Outhavong, and the United Nations Resident Coordinator in Laos, Mr Bakhodir Burkhanov.
Mrs Phonevanh stressed the importance of aligning national financing strategies with green and climate goals.
“As 2025 marks the final year of our 9th National Socio-Economic Development Plan (NSEDP), we stand at a crucial juncture, transitioning into the 10th NSEDP with anticipated Least Developed Country graduation in 2026 – the inaugural year of our new plan.”
“This joint programme directly supports our graduation aspirations by addressing a critical hurdle – the shift towards green and climate-resilient financing mechanisms that can sustain our development gains while safeguarding our environmental assets,” the deputy minister said.
Representing the Luxembourg Embassy to Laos, Mr Thomas Lammar said “We are proud to support this programme, which not only addresses environmental sustainability but also promotes social inclusion and economic opportunity.”
Mr Burkhanov said “In a world of intertwined crises, we must decouple growth from environmental harm. This joint programme, as our first pooled fund prototype, drives coordinated, strategic action for a greener future.”
The programme will be led by the Ministry of Planning and Investment and coordinated by the UN Resident Coordinator.
The two-year initiative is rooted in the 9th National Socio-Economic Development Plan Financing Strategy, endorsed by the Prime Minister, and prioritises green and climate finance as a central pillar of Laos’s development agenda.
The programme harnesses the expertise of the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), the Food and Agriculture Organisation (FAO), and the United Nations Human Settlements Programme (UN-Habitat), working with key ministries including the Ministry of Planning and Investment, Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Agriculture and Forestry, Ministry of Energy and Mines, and the Bank of the Lao PDR.
Through this collaboration, Laos’ capacity to finance its environmental and climate goals is being strengthened.
UNDP is leading efforts in policy development and institutional reform, with a focus on the extractive sector, biodiversity finance, and mainstreaming green finance across ministries.
UNEP is advancing sustainable budgeting and fiscal reform to embed environmental sustainability in financial sector policies.
FAO is bridging the agriculture-environment-finance nexus, spearheading initiatives such as the national Payment for Environmental Services mechanism, climate-smart agriculture, and sustainable food systems.
UN-Habitat is partnering with municipal authorities to drive urban green investments and strengthen local capacity to access green finance.
By targeting selected stakeholders, the programme will advance nature-based solutions, climate-smart agriculture, sustainable urban planning, and community resilience.
It also aims to strengthen data systems and regulatory frameworks to attract green investment. The scheme supports Laos’ Green Growth Strategy, Nationally Determined Contributions, and Least Developed Country graduation plans, reinforcing the country’s commitment to economic growth that is environmentally responsible and climate-resilient.