Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR

The document examines the biodiesel sector in Lao PDR, highlighting the government's goal to reduce dependence on imported fuel by designating approximately two million hectares for biofuel feedstock. It identifies jatropha, soybean, and coconut as high-potential crops, with jatropha specifically noted for its ability to grow on marginal land and prevent erosion. While biodiesel offers benefits such as reduced carbon dioxide emissions and energy security, the paper warns of risks including deforestation, loss of biodiversity, and threats to food security. It concludes that Lao PDR lacks a cohesive national biofuels policy and recommends integrating strategic environmental assessments into future policy development.

• The Government of Lao PDR (GoL) aims to replace imported fuel contributions to total national consumption by 2020 by designating approximately two million hectares of land for biofuel feedstock plantations.
• Various crops are evaluated for biodiesel potential in Lao PDR, with palm producing the highest yield at 5,950 litres per hectare, followed by coconut (2,400 litres), jatropha (2,100 to 2,800 litres), rice (335 litres), coffee (186 litres), soybean (500 litres), and corn (70 litres).
• Jatropha is identified as the most viable biodiesel source in Lao PDR because it can grow on poor, degraded, or marginal land, requires little water, and provides secondary benefits such as soil anchoring and organic manure via its 'press cake'.
• Biodiesel use can reduce net carbon dioxide releases by approximately 80% and dramatically reduce sulphur dioxide compared to mineral-based oil, though it may increase nitrogen oxides by 10-15%.
• The expansion of the biodiesel sector poses significant environmental risks, including the conversion of natural forests to mono-crop plantations, loss of biodiversity, soil erosion, and water pollution from chemical fertilizers and pesticides.
• There are concerns that diverting land to biofuel production could undermine food security by shifting land away from food crops and increasing the prices of stable food crops.
• Lao PDR currently lacks a cohesive national policy for biofuels, relying instead on a fragmented set of laws covering agriculture, forestry, and environmental protection.
• The sector suffers from a shortage of technical expertise, in-country research, and training for rural populations regarding the efficient cultivation and processing of biofuels.

APA

Sengmany, P. (2007). Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/rtea_lao_biodiesel.pdf

Chicago

Sengmany, Phaychith. Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR. International Institute for Sustainable Development, 2007. https://www.iisd.org/system/files/publications/rtea_lao_biodiesel.pdf.

Wikipedia

{{cite report |last1=Sengmany |first1=Phaychith |title=Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR |publisher=International Institute for Sustainable Development |date=December 2007 |url=https://www.iisd.org/system/files/publications/rtea_lao_biodiesel.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{sengmany2007environmental, author = {Sengmany, Phaychith}, title = {{Environmental Impacts of Trade Liberalization in the Bio-diesel Sector of the Lao PDR}}, institution = {International Institute for Sustainable Development}, year = {2007}, month = dec, url = {https://www.iisd.org/system/files/publications/rtea_lao_biodiesel.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }