Mr Viengnam Douangphachanh, Director General, Department of Housing and Urban Planning (L) and Mr Phongsavanh Phomkong, IFC Head of Office in the Lao PDR

(KPL) To address the Lao PDR's growing infrastructure needs amid rapid urbanization, IFC has been supporting the government to develop an action plan for Vientiane to transform it into a low-carbon, climate-resilient city while helping tackle the country’s climate challenges.

As part of IFC's support to the Department of Housing and Urban Planning, Ministry of Public Works and Transport, the Vientiane Capital Green City Action Plan-introduced to local authorities and infrastructure developers and practitioners today-identifies 30 measures for a more sustainable capital city.

 Once implemented, they can help Vientiane Capital reduce the use of fossil fuel energy in buildings by 16 percent, lessen travel by personal fossil fuel vehicles by 24 percent, lower the amount of waste sent to landfills by 37 percent, and improve water security by 9 percent. Overall, this will help the city reduce greenhouse-gas (GHG) emissions by 2030 by 22 percent.

"As urbanized cities continue to be key contributors to climate change through greenhouse-gas emissions, better urban planning, policies, and infrastructure are essential to enhance climate resilience," said Viengnam Douangphachanh, Director General, Department of Housing and Urban Planning, Ministry of Public Works and Transport. "The Green City Action Plan, developed in collaboration with IFC, supports the Vientiane Capital's ambitious roadmap to become resilient and greener by 2030."

The Lao PDR is experiencing the fastest urbanization rate in Southeast Asia, with the urbanization level projected to reach 47.7 percent by 2025, according to UN Habitat. Under the Paris Agreement, the country aims to reduce emissions by 60 percent by 2030 and achieve net zero by 2050.

With an estimated funding of $3.3 billion required to implement the measures from now until 2030, the action plan prop0ses a pipeline for green investments across four key sectors-built environment and energy, transportation, waste, and water. To meet the financing needs, the government can explore public-private partnerships or incentivize private participation through policies, among others.

"For the people of the Lao PDR, efficient city planning is essential to control greenhouse-gas emissions and enhance the quality of life while boosting labor productivity," said Phongsavanh Phomkong, IFC Head of Office in the Lao PDR. "Developed with robust, evidence-based analytics, the Green City Action Plan could be incorporated into Vientiane Capital's investment planning to sustainably meet its growing infrastructure needs, fostering a resilient future for its residents."

The measures identified in the action plan leverage a new platform APEX-Advanced Practices for Environmental Excellence in Cities. Developed by IFC, it helps cities quickly assess the most cost- effective way to incorporate measures into their investment and policy pipelines to achieve targets related to energy, transportation, waste, water, and GHG emissions.

KPL