ZCZC
BCN-05
LAOS-ECONOMY-CARBON-CREDIT
Laos expects to earn income from sale of carbon credit in 2022
VIENTIANE, Jan 29, 2021 (BSS/XINHUA) – 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.
Local daily Vientiane Times on Friday quoted Deputy Director General of the
Forestry Department Khamsene Oukham as saying that the government had 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.
“We expect to receive about 15 million U.S. dollars from the sale of carbon
credit in 2022,” said Khamsene.
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 the designated areas in 2022 to
determine the total amount of carbon credits available.
“If we are unable to protect forest areas, there will be less carbon
credits and we will not earn so much from this business arrangement,”
Khamsene added.
According to the World Bank, the international financial institution has
committed a budget of about 42 million U.S. dollars 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, developed nations and major corporates have agreed to buy
carbon credits from countries as part of their social business
responsibilities, said the report.
Forestry officials say the Lao government is strongly committed to
protecting forests and hopes to earn income from sale of carbon credit.
In order to protect forest 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.
People in communities surrounding the designated forest areas need to have
sustainable jobs and income so they do not encroach into forests and be lured
by businesspeople to fell trees for sale, according to Khamsene.
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