Dialogue on advancing sustainable finance in Lao PDR

Deputy Minister, Directors General, colleagues from our development partners and the UN family,

Good morning, 

I am very pleased to welcome you to UN House for this important dialogue. We have been planning this conversation for a few weeks now and I am delighted that we been able to gather all relevant partners today.  The purpose of today's discussion is to take stock of Lao PDR's development financing landscape, examine whether the institutional architecture is fit for purpose, and identify practical actions that can strengthen the country's ability to mobilize and effectively utilize development, climate, and sustainable finance.

Let me share two points that I believe should frame our discussion this morning.

First, the global development financing landscape is changing rapidly. The global development financing system is being tested like never before. Sharp reductions in official development assistance are expected to significantly affect the availability of development finance. At the same time, global wealth exceeds US$450 trillion, while the financing gap for achieving the Sustainable Development Goals is estimated at US$4.3 trillion annually. The challenge before us is therefore not simply about accessing more resources; it is about transforming how finance is mobilized, allocated, and measured for development impact.

For Lao PDR, the challenge of financing development remains considerable. The financing strategy for the 10th National Socio-Economic Development Plan estimates a financing gap of between US$7 and US$8 billion over the next five years. Climate action is among the sectors facing the largest financing deficits.

Bridging this gap is becoming increasingly difficult. Fiscal pressures remain significant. Traditional development assistance is under strain due to shifting global priorities, while Lao PDR's graduation from Least Developed Country status will gradually alter access to concessional financing. At the same time, attracting private investment for inclusive and green growth is becoming more competitive in an increasingly uncertain global economy. Expanding Lao PDR's ability to leverage larger volumes of development, climate, and private finance is therefore critical, and this discussion provides an opportunity to consider how we can collectively support that objective.

Second, development finance does not begin with capital - it begins with capability.

Mobilizing finance at scale requires knowledge, institutional systems, coordination mechanisms, and practical tools. Strengthening these capabilities is essential if policy ambitions are to be translated into implementable, investable, and bankable opportunities.

This is particularly relevant in the current context. We understand that the Financing Strategy for the 10th NSEDP is being finalized for the Prime Minister's approval. We also understand that the National Committee on Financing Strategy is being re-established through the recently updated Prime Minister's Decree. These are important developments that can strengthen governance, coordination, and strategic oversight of development financing.

We have also seen encouraging progress through the establishment of the Climate and Sustainable Finance Hub within the Ministry of Finance. The Hub is now operational with support from the UN Joint Programme on Green and Climate Finance, funded by the Embassy of Luxembourg and Luxembourg's Ministry of Environment, Climate and Biodiversity. Additional support from the Asian Development Bank has strengthened its staffing arrangements for the next two years.

These efforts are laying important foundations. However, an important question for today's discussion is whether the various pieces of the financing architecture are sufficiently connected and aligned to deliver on national priorities. Financing strategies and investment plans are being developed across several frameworks - the 10th NSEDP, NDC 3.0, the National Biodiversity Strategy and Action Plan, and the National Adaptation Plan - and it is important that we understand them collectively rather than in isolation. Today's discussion provides an opportunity to identify areas of alignment, avoid fragmentation, and consider how financing efforts can be mutually reinforcing.

Looking ahead, 2026 presents an important opportunity for Lao PDR to translate its policy ambitions into stronger partnerships and investment opportunities. The forthcoming "triple-COP" agenda - including the UNCCD, CBD, and UNFCCC processes - provides a platform for Lao PDR to showcase its development ambitions, strengthen international visibility, and position itself as an attractive destination for sustainable and climate-related investment. The 17th Conference of the Parties to the Convention on Biological Diversity (CBD COP17), to be held in Yerevan, Armenia, from 19–30 October 2026, will review progress, set priorities, and adopt decisions on biodiversity conservation, sustainable use, and equitable benefit-sharing. Its themes—Harmony with Nature, Transformative Change, and Every Action Matters—are closely aligned with Lao PDR’s priorities, including the finalization and implementation of the National Biodiversity Strategy and Action Plan (NBSAP) and BIOFIN. Shortly thereafter, COP31 under the United Nations Framework Convention on Climate Change (UNFCCC) will take place in Antalya, Türkiye, from 9–20 November 2026. Coming at a time when the global climate agenda is shifting from target-setting to implementation, COP31 is widely expected to be an “Investment COP”, focused on mobilizing the capital needed to deliver climate commitments at scale.

These global platforms are strategic opportunities for Lao PDR to demonstrate progress, communicate a coherent financing narrative, showcase investment-ready priorities, and strengthen engagement with development partners, international financial institutions, and the private sector. Preparing effectively for CBD COP17 and COP31 can help strengthen Lao PDR’s position as a credible and investable green economy. These opportunities will only generate meaningful outcomes if they are supported by substantive preparation. Increasingly, development partners, international financial institutions, and investors are looking for clear priorities, coherent national narratives, strong institutional coordination, and a pipeline of credible investment opportunities. Participation alone is not enough; preparation and follow-through are what ultimately attract partnerships and finance.

Another objective of today's discussion is therefore to begin thinking about how Lao PDR can strategically prepare for these global platforms so that they advance national priorities and contribute to longer-term financing objectives.

I encourage all participants to share their views openly and constructively. With that, let me hand over to Martine, who will walk us through some of the institutional and operational considerations in greater detail before we open the floor for discussion.

Thank you.