Increased forest cover benefits Laos and the world

Planting trees in the mountains of northern Laos is a beneficial and productive activity, as it helps to increase forest density, foster biodiversity, preserve water sources, and slow climate change.
About a week ago, Ambassador of the European Union to Laos, Ms Ina Marciulionyte was accompanied by French Ambassador Siv-Leng Chhuor, German Ambassador Mrs Annette Knobloch, Hungarian Charge d’Affaires a.i. Mr Laszlo Takacs, Luxembourg Charge d’Affaires a.i. Mr Sam Schreiner and Deputy Director of Cooperation, Swiss Agency for Development and Cooperation Mr Christian Engler. Representatives from the Ministry of Foreign Affairs, the Ministry of Planning and Investment as well as several Lao media travelled to Xiengngeun district in Luang Prabang province and climbed a hill to a spot allocated for tree planting.

Team Europe and other participants climb a hill to plant trees in Luang Prabang province.

Standing in the hills that day, it was possible to imagine that Laos could sell the carbon credits generated from forest cover to the World Bank immediately, but of course this credit is not yet available for sale.
The Lao government expects to earn its first income from the sale of carbon credit in 2022, after signing an agreement with the World Bank.
The walk up the steep hill to plant the saplings took about 20 minutes. On arrival at the top, German Ambassador Mrs Annette Knobloch said she was tired but happy to be planting trees in the company of other ambassadors.
“I hope that Laos will be able to sell carbon credits. Because of our work with development partners such as the German government, the European Union and Team Europe, we will reach out and be strong together,” she said.
It has been possible for some countries to sell a huge number of carbon credits after restoring forests across their territory following many years of degradation.
The Lao government planned to increase forest cover to 65 percent by 2015 and 70 percent by 2020. However, the 70 percent target has not yet been met, and has been set for 2025 to 2030 instead.
Germany is providing technical and forest management assistance to many provinces in Laos during the period 2020-2024, including Luang Prabang, worth a total of EUR18 million.
The World Bank has committed a budget of about US$42 million under the Forest Carbon Partnership Facility to purchase carbon credits from Laos from 2020 to 2025.
The Bank’s initiative aims to reduce carbon emissions released into the atmosphere, one of the main causes of global warming and extreme weather patterns around the world.
Developing and developed nations, as well as major corporates, have agreed to buy carbon credits from countries as part of their social business responsibilities.
The government has signed an agreement with the World Bank to sell carbon credits from designated forest areas in the six northern provinces of Huaphan, Luang Prabang, Oudomxay, Luang Namtha, Bokeo and Xayaboury.
The actual amount of money earned will depend on the amount of carbon credits available from these areas.
Under the agreement with the World Bank, the relevant sectors will reassess the production of carbon credit from designated areas in 2022 to determine the total amount of carbon credits available.
The Lao government is strongly committed to protecting forests and hopes to earn income from the sale of carbon credit.
But unless we can all do whatever’s possible to protect our forested areas, there will be fewer carbon credits and Laos will not earn so much from this business arrangement.
In order to protect forested areas, forestry officials say the government will use money earned from the sale of carbon credit as well as sourcing funds from development partners to reduce poverty in the designated areas.
From May 16-18, six European Heads of Mission visited Team Europe projects in Vientiane, Vangvieng and Luang Prabang. The purpose of this trip was to monitor the progress and to reaffirm Team Europe’s strong commitment in working together in the framework of the Team Europe Strategy 2021-2025 for Lao PDR, focusing on three priority areas: Green and Inclusive Economy, Human Capital and Good Governance.
The three-day visit, started with a visit of the Hungarian-supported Veterinary Vaccine Production Centre (VVPC) in Vientiane. In Vangvieng, partners visited The Academy Hotel and Restaurant, supported by the joint Luxembourg-Switzerland Skills for Tourism project, implemented by Luxembourg Development Cooperation Agency (LuxDev) and the Ministry of Education and Sports (MoES).
After a pleasant train-trip to Luang Prabang, representatives visited the Nutrition Sensitive Agriculture Project (NUSAP), which is co-financed by the EU and France, and the Citizen Engagement for Good Governance, Accountability and the Rule of Law (CEGGA) project, supported by the EU, Germany, and Switzerland. Finally, Team Europe ended its visit with the Climate Protection through Avoided Deforestation (CliPAD) project, supported by Germany.
During the visit, Team Europe met with local authorities and European businesses to discuss the ongoing social and economic development of the province as well as the impact of Covid-19. European Heads of Mission also took the opportunity to express their willingness to strengthen their trade, economic, and investment partnership with Laos, especially focusing on quality investment, which contributes to inclusive growth and jobs.
‘The visit intends to showcase that Team Europe is working together to accompany Laos towards green and inclusive growth while promoting trade and investment, and consolidating good governance in order to pave the way to a smooth LDC graduation, towards achieving the Sustainable Development Goals’ said the EU Ambassador on behalf of European partners.
“I would like to express my great appreciation and heart-felt thanks to Team Europe for their support, especially in supporting poverty eradication and improving living conditions of multi-ethnic people in Laos. I hope that European partners will remain side by side with the Lao government to implement successfully the socio-economic development plan and our Green Growth Strategy, in order to contribute to the achievement of SDGs and graduation from the status of least developed country by the year 2026,” shared MPI Deputy Minister Dr Sthabandith Insisienmay.
For the next five years (2021-2025), the European Union (EU), Finland, France, Germany, Hungary, Ireland, Luxembourg, and Switzerland, working together as Team Europe, committed to contribute an estimated EUR 550 million in support of a green and inclusive economy, human capital development, and good governance, in the framework of Laos’ 9th National Socio-Economic Development Plan (NSEDP). All six European Ambassadors and Heads of mission outlined their commitment to work together on co-financed projects in order to maximise the effectiveness of European partners’ cooperation in Laos.

By Times Reporters
(Latest Update May 23, 2022)