Australia will support the Lao Government to strengthen climate resilience and improve energy, food and water security by:

• Supporting reform of the policy and regulatory framework in the energy sector, to facilitate greater uptake of renewable energy technologies and access to climate financing
• Enhancing climate resilient agriculture and water management
• Improving access to climate resilient water and sanitation facilities and practice of safe hygiene behaviours

Australia will extend and expand its bilateral engagement with Laos on climate change. We will build upon our support to enhance Laos' understanding and adoption of new renewable energy technologies and access climate financing, develop the policies and regulations needed to participate in international carbon markets and assist development of new investments in climate resilient agriculture. We will also continue to harness regional investments for climate resilience and water management.

A number of global and regional programs also contribute to this objective. See Annex 1 of the Australia–Laos Development Partnership Plan 2024-2029.

Strengthening Climate Policy in Lao PDR

$3.9 million (2023-2027)

The initiative strengthens policy and institutional capacity of Lao PDR’s line ministries to better address climate change impacts, enhance climate resilience, and increase climate finance through carbon credits. The program will create a coordinated multi-sectoral framework for sustainable participation in international carbon markets to increase flows of carbon finance into Laos, facilitate carbon sequestration and reduce greenhouse gas emissions. The program will also assist Lao PDR's preparation of their NDC 3.0 for the energy sector, ensuring policy alignment that will create a bigger impact and contribute to achieving Lao PDR’s climate goals.

Enhancing Sustainable Groundwater Management in Laos

$2.5 million (2024-2029)

This program facilitates the sustainable development, management and equitable use of groundwater resources, ensuring benefits of a clean and climate-resilient water source to support economic growth and groundwater-dependent communities.

Laos-Australia Sustainable Energy Partnership (LASEP)

$3.0 million (2023-2025)

LASEP supports the policy and regulatory framework needed to strengthen planning and greater uptake of renewable energy. The program promotes the integration between energy, climate change and disaster risk reduction. LASEP will integrate social considerations to support the Lao Government to build an inclusive, just and sustainable energy sector. Through LASEP, we are engaging the private sector, civil society, and public on the challenges and opportunities of transitioning toward a more reliable, sustainable and inclusive energy sector. LASEP is implemented through the regional Partnerships for Infrastructure program.

Water, Sanitation and Hygiene in Rural Communities in Laos

$6.0 million (2022-2027)

The program improved access to climate resilient and gender equitable water, sanitation, and hygiene services in hard-to-reach communities including health clinics, and schools through provision of water supply, sanitation, and handwashing facilities. The program operates in five provinces across Laos (Phongsaly, Oudomxay, Houaphan, Luang Namtha and Savannakhet).