Environmental impacts of trade liberalisation in the bio-diesel sector of the Lao People’s Democratic Republic (PDR)

This paper presents an overview of the biodiesel sector in Lao People&rsquo;s Democratic Republic (PDR) in light of increased trade liberalisation with its key trade partners. It explores the potential positive and negative environmental effects of trade liberalisation in this sector. <br /><br />The author highlights environmental impacts that should be considered in trade negotiations and emphasises the positive impacts of biodiesel from plants like Jatropha, such as the reduction of the country&rsquo;s dependence on mineral oil products, and its trade deficit. It discusses how biofuels contribute to environmental protection on a large scale. The author also considers the negative impacts of biodiesel, such as unsustainable land use changes as a result of a shift from food to biodiesel production and the loss of natural forests to mono-crop plantations for biofuels. <br /><br />Strategic recommendations and conclusions include: while many government policies and regulations indirectly govern the biodiesel sector, a cohesive national policy on bio-fuels does not exist at present and will require coordination between government ministries and provincial authorities there is a lack of in-country materials, research and expertise in biofuels in Lao PDR in formulating a national biodiesel policy, it is recommended that the Government of Laos consider mainstreaming environmental considerations into biodiesel policy and regulation development processes it must also consider encouraging the private sector to adopt best practices, through strengthening the strategic environmental assessment process to ensure the private sector addresses environmental and social issues of their operations in Lao PDR.<br />