Laos Strengthens Climate Finance Mechanism to Support Sustainable Development

The Steering Committee meeting on the Implementation of the Climate and Sustainability Finance Focal Point was held on September 2, 2026, with a focus on strengthening financing and coordination to help protect communities from climate-related risks and support sustainable national development. The meeting was chaired by Mr. Sitthiroth Rasaphone, Deputy Minister of Finance, and attended by representatives from relevant ministries and government agencies, as well as delegates from the United Nations Development Programme (UNDP) and the Asian Development Bank (ADB). Established in 2025 under the Department of Economic and Financial Policy of the Ministry of Finance, the Climate and Sustainability Finance Focal Point serves as a coordination mechanism for mobilizing resources, providing policy guidance and improving the allocation and use of funds for climate change and sustainability programmes. The mechanism is expected to help ensure that available financial resources are directed toward national priorities, including measures to reduce the impacts of floods, storms and other natural disasters, strengthen community resilience, protect livelihoods and improve essential infrastructure and public services. Mr. Sitthiroth said climate change and natural disasters remain urgent development challenges. In the Lao PDR, increasingly severe weather events, particularly during the rainy season, have affected communities and caused significant economic losses in several provinces. He stressed the need for stronger coordination and financing to support timely responses to climate risks while advancing the country’s development priorities under the National Socio-Economic Development Plan (NSEDP), Nationally Determined Contributions (NDC) and National Adaptation Plan (NAP). The Climate and Sustainability Finance Focal Point was established under the Integrated National Financing Framework to support implementation of the NSEDP, with financial and technical assistance provided through joint UNDP programmes. The meeting reviewed the mandate, progress and future work of the mechanism, as well as the draft Financing Strategy for the 10th Five-Year National Socio-Economic Development Plan (2026–2030). Participants also discussed the action plan for the remainder of 2026 and the work plan for 2027, with the aim of strengthening financing arrangements and ensuring that climate and sustainability investments deliver greater benefits for people and communities. National defence personnel in Oudomxay Province have continued emergency flood relief operations for a fourth consecutive day, helping affected residents recover their homes and clear debris following severe flooding in Xay District. Flooding across Khammouane Province between July and August 2026 has affected around 151,000 residents across all 10 districts, with preliminary damage estimated at more than 275.57 billion kip, as provincial authorities accelerate recovery efforts and further damage assessments. Electricité du Laos (EDL) technicians are working urgently to restore electricity supplies in flood-affected areas of Luang Namtha Province after recent flooding damaged parts of the power distribution network. The Embassy of India in the Lao PDR hosted a reception in honour of Shri Pabitra Margherita, Minister of State for External Affairs and Textiles of the Government of India, on 28 August 2026 at the Crowne Plaza Hotel in Vientiane. The Culture and Tourism Office of Thoulakhom District, Vientiane Province, has issued a notification prohibiting accommodation and service providers from facilitating or supporting individuals involved in internet crimes, online gambling and scams.