Growth Gateway: Laos sustainability opportunities (summary)
Published 17 September 2025
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Southeast Asia is poised to become the world’s fourth-largest economy and the third-largest labour force by 2030, positioning itself as a vital socio-economic and biodiversity hub.
However, the region faces significant climate-related vulnerabilities, particularly in Laos, where 58% of the population relies on agriculture – a sector increasingly affected by extreme weather events such as floods, droughts, and cyclones. These challenges underscore the urgent need for climate resilience and sustainable development strategies.
In response, the Laos government has initiated climate action through key policy documents: the updated Nationally Determined Contribution (NDC) in 2021 and the National Adaptation Programme of Action (NAPA) in 2009. The NDC sets ambitious emissions reduction targets of 45% to 70% by 2030, while NAPA outlines 45 short-term pilot projects. However, NAPA lacks coverage of critical sectors like Transport, Industry, and Energy, which are increasingly relevant to climate concerns.
The UK, through its Growth Gateway programme, has partnered with Laos to support climate mitigation, adaptation, and resilience efforts. Gateway’s analysis of the NDC and NAPA policies suggests that full implementation could yield substantial socio-economic benefits, including 40,000 to 55,000 new jobs and an additional USD 300 to 350 million in GDP – an average increase of 2% to 3% over a business-as-usual scenario.
This impact stems from prioritising sectors with high climate potential, identified using the ND-GAIN index, namely Agriculture, Forestry and Other Land Use (FOLU), and Energy. Further analysis revealed that these sectors could generate significant employment for vulnerable groups, including 30,000 to 33,000 jobs for women, 32,000 to 36,000 for rural communities, and 40,000 to 45,000 in micro, small, and medium enterprises (MSMEs).
The UK’s Foreign, Commonwealth & Development Office (FCDO) remains a committed partner in taking steps towards achieving the sustainability goals of Laos and looks forward to exploring further opportunities together in accelerating sustainable development that have significant impact on mitigation, adaptation, and resilience efforts.