Vientiane, Oct 15 : Representatives from the Lao central bank, the Bank of the Lao PDR (BOL), and local financial institutions gathered in the Lao capital, Vientiane, on Tuesday for training on green finance, aiming to strengthen understanding and implementation of sustainable financial practices.

The training aimed to develop a Laos green finance taxonomy, establish guidelines for green lending, integrate environmental, social, and governance (ESG) risk management, and set up a framework for thematic bond issuance, reports Xinhua, quoting Laos news agency.

These initiatives are designed to align with ASEAN and international standards.

Deputy Governor of the BOL, Soulivath Souvannachoumkham, said that the training is a significant step toward building a greener and more inclusive economy.

Soulivath highlighted the country's vulnerability to climate change, with 70 per cent of the population relying on agriculture and natural resources. Frequent extreme weather events, such as floods and droughts, have affected agricultural yield and income in Laos.

In response to these challenges, the Lao government has committed to global climate initiatives, including the Paris Agreement, and adopted the Lao National Green Growth Strategy. A robust green financial system is essential for achieving these sustainability goals.

The training brought together experts from the International Finance Corporation of the World Bank and other organisations to discuss global trends, green finance opportunities, and new regulations in Laos' financial sector. These insights are expected to help financial institutions and regulators align their strategies with sustainable practices.

/IANS