Vientiane, Lao PDR – 29 April 2025 – The Government of the Lao People’s Democratic Republic, in partnership with the United Nations system and with the support of the Government of Luxembourg, has officially launched the Joint Programme on Green and Climate Finance—a forward-looking programme aimed at steering the country’s economic transformation toward sustainability, resilience, and inclusivity.
At the signing ceremony held at the Ministry of Planning and Investment, H.E. Mme Phonevanh Outhavong, Vice Minister of Planning and Investment, emphasized 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, we stand at a crucial juncture, transitioning into the 10th NSEDP with anticipated LDC 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 toward green and climate-resilient financing mechanisms that can sustain our development gains while safeguarding our environmental assets,” said the Vice Minister.
Mr. Thomas Lammar, Chargé d'affaires of the Luxembourg Embassy in Lao PDR, and Mr. Bakhodir Burkhanov, UN Resident Coordinator in Lao PDR, also addressed the event, highlighting the value of coordinated international support for climate change and green finance.
“Luxembourg, through its Ministry of the Environment, Climate and Biodiversity, is proud to support this programme, which not only addresses environmental sustainability but also promotes social inclusion and economic opportunity in cooperation with the private sector,” said Mr. Thomas Lammar. “Green and climate finance is about more than protecting the environment—it’s about building stronger, fairer societies.”
“In a world of intertwined crises, we must decouple growth from environmental harm and break down silos. This Joint Programme, as our first pooled fund prototype, drives coordinated, strategic action for a greener future,” said Mr. Bakhodir Burkhanov.
Led by the Ministry of Planning and Investment (MPI) and coordinated by the UN Resident Coordinator, the two-year programme is rooted in the 9th National Socio-Economic Development Plan (NSEDP) Financing Strategy, endorsed by the Prime Minister. It prioritizes green and climate finance as a central pillar of Lao PDR’s development agenda. This initiative will strengthen green and climate finance policies, cross-sectoral coordination, and institutional capacity, while promoting innovative financial mechanisms that support environmental sustainability and bolster the country’s resilience to climate change.
The Programme harnesses the technical expertise of the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP), the Food and Agriculture Organization (FAO), and the United Nations Human Settlements Programme (UN-Habitat), working with key ministries, including the Ministry of Planning and Investment, the Ministry of Finance, Ministry of Natural Resources and Environment, Ministry of Agriculture and Forestry, Ministry of Energy and Mines, and the Bank of Lao PDR.
Through this collaboration, the country’s 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.
This launch supports Lao PDR’s Green Growth Strategy, Nationally Determined Contributions, and LDC graduation roadmap, reinforcing the country’s commitment to economic growth that is environmentally responsible and climate-resilient.
For media inquiries, please contact:
Aksonethip Somvorachit, Programme Communications and Advocacy officer at:
aksonethip.somvorachit@un.org