The government expects to earn its first income from the sale of carbon credit next year after signing an agreement with the World Bank.
The Deputy Director General of the Forestry Department, Mr Khamsene Oukham, said on Thursday 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 US$15 million from the sale of carbon credit in 2022,” he told Vientiane Times. 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,” Mr Khamsene said.