GEF – 7 Propose projects/Concept Notes Sommai FAMING UNIDO Country Representative Vientiane , 12 February 2019

Content UNIDO in brief Brief of Proposed projects/ Concept Notes: i. Supporting the transition to Electric Vehicles in Lao PDR ii. Transition to cleaner fuels in the transport sector in Lao PDR iii. Reduction and management of UP-POPs and Promotion of Sustainable Energy in Laos Key industry through Integrated approaches

UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. UNIDO’s Mandate: To promote and accelerate Inclusive & Sustainable Industrial Development (ISID) in Member States UNIDO’s mandate is fully recognized in SDG-9, - to “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”. The relevance of ISID, however, applies in greater or lesser extent to all SDGs

4 Strategic priorities: Achieving equitable & sustainable social, economic and environmental growth while mainstreaming women and youth. 4 Strategic priorities: Strengthening knowledge and institutions Each of these programmatic fields of activity contains a number of individual programmes, implemented in a holistic manner to achieve effective outcomes and impacts through (i) technical cooperation; (ii) analytical and research functions and policy advisory services; (iii) normative functions and standards and quality-related activities; and (iv) convening and partnerships for knowledge transfer, networking and industrial cooperation.

Project brief: i. Supporting the transition to Electric Vehicles in Lao PDR Rational: The vision of the government of Lao PDR is to replace around 30% or around 550,000 of the existing vehicles by 2030 and zero fuel consumption in the transport sector by 2050. Also, Energy Efficiency in Transport to recue greenhouse gas emissions and to reduce energy costs and to reduce the adverse effects of supply and infrastructure activities Duration of project: Three years (36 months) Total cost of project (in US$): 6.0 million; Expected GEF funding (US$): 1.0 million Other funding source(s)/co-finance: US$ 5 million from government agencies, local banks and industry/private sector GEF Agency: United Nations Industrial Development Organization (UNIDO) Government Coordinating and Implementing agency: Institute of Renewable Energy Promotion, MEM, MoNRE, MoTPW, etc. Objective of project: The proposed project aims to transform the market for Electric Vehicles (EVs) by supporting the development of a regulatory framework and financial incentive scheme for enhanced EV adoption, by providing technical assistance in capacity building, as well as through the upscaling of EV charging infrastructure.

Project components Component 1: Policy and regulatory framework to support the transition to an electric vehicle deployment Analyze the policy support needed by the Government of Lao PDR Assist in formulating laws/regulations and policy measures that encourage investment in electric vehicles and charging infrastructure Formalize a technology roadmap for EVs

Component 2: Awareness, training and capacity building for government agencies, energy suppliers, grid operators, mechanics and other stakeholders Assist the Institute of Renewable Energy Promotion under the ministry of Energy and Mines, Lao PDR to increase awareness and information availability on technical issues relating to an EV energy transition as well as about the environmental benefits and opportunities offered of such transition in relation to the renewable electricity generation Develop technical capacity on charging infrastructure requirements and maintenance of EVs as well as of charging infrastructure locally, by establishing a group of national experts Bridging the gap between global initiatives and local execution, technical gap between international EV/charging infrastructure providers and end users/government/investors Assist Lao PDR’s government agencies in the purchase of an electric vehicle fleet to demonstrate the technology as well as to trigger investments in the EV sector  

Provide technical support for establishment of charging infrastructure Component 3: Charging infrastructure development Formalize a roadmap on infrastructure requirements (including technology and support system) Provide technical support for establishment of charging infrastructure Assist the government in developing the charging infrastructure with helping in setting up a pilot project among government buildings in Vientiane Component 4: Monitoring & Evaluation Adequate monitoring of all project indicators to ensure successful project implementation and evaluation

ii. Transition to cleaner fuels in the transport sector in Lao PDR Rationale: The amount of fossil fuel import has been highly increasing year by year due to increasing of vehicles and other equipment that using fossil fuel in recent. Laos’s lack of fossil fuel sources but Laos is abundant on natural resource especially high potential of biomass such as: corn, cassava, soy bean and so on. the Government Renewable Energy Development Strategy for Lao PDR supporting the country to reach its targeted share of 10% Biofuels of total transportation energy consumption Duration of project: Three years (36 months) Total cost of project (in US$): 6.0 million; Expected GEF funding (US$): 1.0 million Other funding source(s)/co-finance: US$ 5 million from government agencies, local banks and industry/private sector GEF Agency: United Nations Industrial Development Organization (UNIDO) Government Coordinating and Implementing agency: Institute of Renewable Energy Promotion, MEM, MoIC, MoNRE, MoTPW, etc. Objective of project: The proposed project is designed to promote the transition to cleaner fuels in the transport sector in Lao PDR through the development of a sustainable value chain for clean and innovative biofuel consumption and production.

Project components Component 1: Building national capacity to promote the transition to cleaner fuels in the transport sector National capacity built to ensure sustainable transition to cleaner fuels in the transport sector Component 2: Policy, regulatory framework. and standards, as well as institutional capacity strengthened Policy and regulatory framework strengthened and standards developed to promote the transition to E5/E10 in the transport sector Institutional capacity enhanced to promote the transition to cleaner fuels in the transport sector

Component 3: Technology transfer & investment promotion Innovative biofuel technology transferred with private sector involvement Component 4: Monitoring & Evaluation Adequate monitoring of all project indicators to ensure successful project implementation and evaluation

iii. Reduction and management of UP-POPs and Promotion of Sustainable Energy in Laos Key industry through Integrated approaches Rationale: Responding to climate change, two-prong approach :- mitigation and adaptation. To support MoIC and MoNRE to fulfil its mandate per updated NIP under Stockholm Convention. To introduce Best Available Techniques (BAT) and Best Environmental Practices (BEP) subsume the activities under the Stockholm Convention to reduce and ultimately eliminate the unintentionally produced POPs in key industry. Duration of project: Three years (60 months) Total cost of project (in US$): 11.88 million; Expected GEF funding (US$): 1.98 million Other funding source(s)/co-finance: US$ 9.9 million from government agencies, local banks and industry/private sector GEF Agency: United Nations Industrial Development Organization (UNIDO) Government Coordinating and Implementing agency: MoIC, MoNRE, MoST, etc. Objective of project: The proposed project is designed to support the country in reducing of unintentionally-produced POPs and promotion of sustainable energy management in key industrial sectors through integrated approaches.

Project components Component 1: Policy and Regulatory Framework Policy and regulatory framework strengthened and enhanced for the implementation of a sound management of POPs chemicals in compliance with the Stockholm Convention requirements. Component 2: Information Dissemination and Capacity Building Increased awareness on U-POPs and BAT/BEP concepts by relevant stakeholders Improved national capacity in energy management systems.

Project components Component 3: Demonstration of integrated approaches for reduction of UP-POPs and GHG emission reduction at selected industries Integrated approaches for UP-POPs and GHG emission reduction adopted by selected industries Component 4: M&E and Knowledge Management and dissemination Effective monitoring and evaluation of project impact and sustainability implemented.

THANK YOU! For more information: Sommai FAMING UNIDO Country Representative E-mail: s.faming@unido.org