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

This research paper examines the potential for biodiesel production in the Lao PDR as a means to reduce dependence on imported fuels amidst trade liberalization through ASEAN and the WTO. It evaluates various feedstock options, identifies significant environmental risks associated with land-use change, and recommends the creation of a cohesive national biofuels policy integrated with strategic environmental assessments.

• 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.
• Among various potential feedstocks, Jatropha Curcus is identified as the most viable current option for biodiesel in Lao PDR because it is easy to grow and produces seeds with high oil content. It is estimated that over 50,000 hectares of jatropha have already been planted in the country.
• Biodiesel offers environmental advantages over mineral-based oil, including a reduction in carbon dioxide net release by approximately 80 percent and a significant decrease in sulphur dioxide, although nitrogen oxides may increase by 10-15 percent when using pure biodiesel.
• The expansion of the biodiesel sector poses several environmental and social risks, most notably the conversion of natural forests to mono-crop plantations, the diversion of land from food crops to fuel crops, and water pollution from chemical fertilizers and pesticides.
• The potential carbon-sequestering benefits of biodiesel may be negated if prime forested areas are cleared for cultivation, a risk particularly relevant given that forests cover approximately 40 percent of Lao PDR.
• Lao PDR currently lacks a cohesive national policy, specific decrees, or regulations to manage the production and use of biofuels, relying instead on a variety of indirect laws related to agriculture, forestry, and environmental protection.
• The author recommends that the GoL implement a strategic environmental assessment (SEA) for national biofuel policy, develop a 'Master Plan' for land utilization to encourage crop rotation, and establish a centralized institution to address gaps in technical expertise and quality control.

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} }