The Lao government, in cooperation with a private company, is rolling out a forest carbon credit initiative in an effort to reduce greenhouse gas emissions from forest destruction and forest degradation.

Under an agreement between the Lao Ministry of Agriculture and Forestry, the Lao Ministry of Natural Resources and Environment, and AIDC Green Forest, a private company, the project will involve eight forests with a total area of approximately 1.4 million hectares.

The scheme is an important national strategy and is in line with strategies adopted by other countries to reduce forest destruction, which is one of the causes of climate change, according to a report from the Lao Ministry of Agriculture and Forestry on Wednesday.

The initiative will help protect and restore forests while also improving the quality of life of local communities, and strengthening the national economy and the overall development of society.

Under the agreement, signed in Lao capital Vientiane on May 5, international standards will be followed to advance the purchase and sale of carbon credits in the future.

The project will be a big step forward in enabling Laos to buy and sell forest carbon credits in line with Lao and international market mechanisms.