It is a land-locked country with population of 6.75 million in 2017, which accounted only 1.05%
of the total ASEAN population. Agriculture, industry and service sectors contribute the most to
its GDP. Hydropower and traditional biomass are the major energy sources used in TPES,
while oil products and traditional biomass are the major consumers in TFEC.
Reduce CO2 from transportation
Lao People’s Democratic Republic is a land-locked country with a population of 7.3 million [1] in 2021 and a GDP value of USD 19.63 billion. Lao PDR is one of the fastest-growing economies in the region and globally as the GDP growth averaged 3.5% over the last decade. Previously, agriculture constituted the main economic sector, accounting for over 50% of Lao PDR GDP. However recent expansion in manufacturing has been shifting the GDP share in Lao PDR. Currently, the agriculture sector contributes to 23% of Lao PDR GDP while the industry and services sectors contribute to 33% and 37% respectively. The country aims to accelerate its development and end its status as a least-developed country by 2020. Vientiane (or Viangchan) is the capital city of the country, and the official language is Lao.
[1] ASEAN Secretariat. ASEAN Statistical 2022
Lao PDR’s population has been increasing steadily from 6.7 million in 2017 to 7.3 million in 2021. Nonetheless, it is one of the smallest populations, which contributes only 1.10% of the total ASEAN population. The population is expected to grow at an annual growth rate of 2%, which will be the highest growth rate in ASEAN. On the other hand, the Gross Domestic Products (GDP) per capita of Lao PDRs has been growing at annual growth rates of 3.5 % to 2,693.3 USD in 2021.
[1] Population Growth (annual %) – Lao PDR, The World Bank (2021)
[2] GDP per Capita (in USD) – Lao PDR, The World Bank (2021)
Hydropower and traditional biomass are the major energy sources used in TPES. Nonetheless, in 2015, coal has been added as an energy source and this is also the only fossil fuel type that has been used in the primary supply. The annual growth rate of total primary energy supply (TPES) in BAU from 2019 to 2023 increases by about 3.9% per annum and in the COVID-19 scenario by about 3.1%. Primary consumption of petroleum decreases more than for other fuels (by 2.5%), followed by coal (0.3%), hydro (0.2%), and biomass (0.1%).
Oil products and traditional biomass are the major consumers in TFEC, each accounting for about 40%, compared to electricity, which is only about 13% of the TFEC.
The annual average growth rate (AAGR) of total final energy consumption (TFEC) in BAU from 2019 to 2023 increases by about 4.5% per annum and in the COVID-19 scenario by about 3.2% per annum (Table 10.1). Energy consumption decreases from 3,867.3 kilotonnes of oil equivalent (Ktoe) to 3,681.3 Ktoe in 2023. Solid fuel consumption decreases the most, by 2.8%, followed by petroleum (2.6%), electricity (0.9%), and biomass (0.1%).
The Lao PDR National Energy Efficiency and Conservation Policy will reduce 10% in 2030 to 20% in 2040 [1].
[1] Lao PDR country profile 2022.
To secure a future where Lao PDR is capable of mitigating and adapting to changing climatic conditions in a way that promotes sustainable economic development, reduces poverty, protects public health and safety, enhances the quality of Lao PDR’s natural environment, and advances the quality of life for all Lao People.
To achieve the above vision, Lao PDR has outlined the following intended mitigation activities to be implemented in 2015 – 2030.
In 2020 it is estimated that national GHG emissions will be around 53,000 ktCO2e, this has been through the reduction of GHG mitigation measures that have been implemented since 2000. Lao PDR achieved a 34% reduction in emissions between 2000 and 2020 compared to the baseline scenario while the GHG emission growth rate during the period can be estimated at around 0.3% on average annually.
Increase the share of renewables (by 2025)
CO2 avoidance from large scale hydroelectricity (2020-2030)
Reduce CO2 emissions from transportation
Increase forest cover
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