Today, the International Finance Corporation (IFC) and the Bank of the Lao PDR have signed a cooperation agreement to strengthen their collaborative effort in developing green finance. The partnership aims to create guidelines and standards to attract the green capital Lao PDR needs to drive its economy and create jobs, while promoting a greener and more livable planet.
The impacts of climate change are particularly significant for Lao PDR’s economy due to its dependence on climate-sensitive natural resources including water, forestry, and agriculture. To mitigate the impacts and achieve carbon-neutral status by 2050, Lao PDR has set a mid-term target of reducing greenhouse-gas emissions by 60 percent by 2030. This will require almost $4.8 billion in mitigation measures by 2030.
Vathana Dalaloy, Deputy Governor of the Bank of the Lao PDR, said: “The financial sector holds significant potential in directing funds towards green projects and contributing to national environmental objectives, with the Bank of the Lao PDR playing a key role in leading the financial sector in this direction. IFC’s further assistance will allow us to foster a policy and regulatory environment conducive for all financial institutions to cultivate widely accessible green finance products in the local market.”
IFC and the Bank of the Lao PDR have been working together for more than a year to review the current landscape for green finance in Lao PDR and inform the way forward in greening the financial sector. The new partnership will now focus on developing a sustainable finance policy framework, establishing standards and guidelines for green lending and issuance of thematic bonds, and building the capacity of regulators and market participants.
Thomas Jacobs, IFC Country Manager for Viet Nam, Lao PDR, and Cambodia, said: “Globally, central banks are promoting the green finance agenda and it is great to see the Bank of the Lao PDR facilitating sustainable finance reforms in the country. Given IFC’s global experience, IFC is uniquely equipped to assist the Lao financial sector to mobilize private sector capital towards climate-friendly projects with innovative financing solutions including green bonds.”
IFC has been working in Lao PDR since 1998 to support the country’s development agenda by assisting private sector development, promoting sustainability, and creating job opportunities.
Today, the International Finance Corporation (IFC) and the Bank of the Lao PDR have announced a strengthened partnership aimed at accelerating reforms to develop guidelines and standards for green finance. This will help attract the green capital needed to drive Lao PDR’s economy, create jobs, and promote a greener and more livable planet.
The impacts of climate change have been particularly significant for Lao PDR’s economy due to its dependence on climate-sensitive natural resources. To mitigate the impacts and achieve carbon-neutrality by 2050, the country has set a mid-term target to reduce greenhouse-gas emissions by 60 percent by 2030 – requiring almost $4.8 billion in mitigation measures.
Vathana Dalaloy, Deputy Governor of the Bank of the Lao PDR, said: “The financial sector holds significant potential in directing funds towards green projects and contributing to national environmental objectives, with the Bank of the Lao PDR playing a key role in leading the financial sector in this direction. IFC’s further assistance will allow us to foster a policy and regulatory environment conducive for all financial institutions to cultivate widely accessible green finance products in the local market.”
IFC and the Bank of the Lao PDR have been working together for more than a year to review the current landscape for green finance in Lao PDR and inform the way forward. The new partnership will focus on developing a sustainable finance policy framework, establishing standards and guidelines for green lending and issuance of thematic bonds, and building the capacity of regulators and market participants.
Thomas Jacobs, IFC Country Manager for Viet Nam, Lao PDR, and Cambodia, said: “Globally, central banks are promoting the green finance agenda and it is great to see the Bank of the Lao PDR facilitating sustainable finance reforms in the country. IFC is uniquely equipped to assist the Lao financial sector to mobilize private sector capital towards climate-friendly projects with innovative financing solutions including green bonds.”
IFC has been working in Lao PDR since 1998, committed to supporting the country’s development agenda through assisting private sector development, promoting sustainability, and creating job opportunities.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.