(KPL) Vientiane, October 15 – More than 150 representatives from the Bank of Lao PDR and local financial institutions gathered in Vientiane for a full-day training on green finance, co-organized by the Bank of Lao PDR and the International Finance Corporation.

The workshop aimed to strengthen the sector's understanding and implementation of sustainable financial practices, as part of the ongoing Laos Green Finance Project.

The focus of the training was Phase II of the project, which aims to develop a Laos green finance taxonomy, establish guidelines for green lending, integrate environmental, social, and governance (ESG) risk management, and set up a framework for thematic bond issuance. These initiatives are designed to align with ASEAN and international standards.

Deputy Governor of the Bank of Lao PDR, Soulivath Souvannachoumkham, emphasized the importance of the event, calling it a significant step toward building a greener and more inclusive economy. He highlighted the country's vulnerability to climate change, with 70% of the population relying on agriculture and natural resources. Frequent extreme weather events, such as floods and droughts, have cost Laos between 2-3% of its GDP annually, with the agricultural sector, which contributes 21% of GDP, particularly affected.

In response to these challenges, the Lao government has committed to global climate initiatives, including the Paris Agreement, and adopted the National Green Growth Strategy. A robust green financial system is seen as essential for achieving these sustainability goals.

"Building on the success of Phase I, we are now moving forward with Phase II of the project," said Soulivath. He noted that since the signing of the Cooperation Agreement between the Bank of Lao PDR and IFC in December 2023, significant progress has been made in developing policies and frameworks for green finance.

The seminar brought together experts from the IFC and other organizations to discuss global trends, green finance opportunities, and new regulations in Laos’ financial sector. These insights are expected to help financial institutions and regulators align their strategies with sustainable practices.

Christina Ongoma, IFC’s Financial Institution Group Upstream and Advisory Services Manager for East Asia and the Pacific, underscored the critical timing of the workshop. She expressed hope that the training would deepen participants' understanding of the opportunities and challenges posed by climate change. Ongoma emphasized the vital role financial institutions play in driving the transition to a low-carbon economy and highlighted IFC’s commitment to supporting the Bank of Lao PDR and local financial institutions in scaling up green finance.

Ongoma thanked participants for their engagement and encouraged active discussion throughout the seminar, calling for continued collaboration in advancing sustainable finance in Laos.

KPL