LaoRefuel: First Plastic Credit Project in Lao PDR

Background:

Plastic waste management remains a significant environmental challenge in the Lao People’s Democratic Republic (Lao PDR), particularly in Vientiane Capital, where increasing volumes of plastic waste continue to outpace existing collection and disposal capacities. A substantial portion of plastic waste is disposed of in open landfill sites with limited environmental control measures, posing risks to both the surrounding environment and local communities.

To address this challenge, Lao Kayama Sole Co., Ltd. (“Lao Kayama”) and Savan EMC Co., Ltd. (“SEMC”) established the LaoRefuel Plastic Waste Management Project. The project promotes a circular economy approach by recovering and processing plastic waste into Refuse-Derived Fuel (RDF), which is then utilized as an alternative fuel in cement manufacturing, replacing fossil fuels. Building on this existing waste management initiative, the project has further advanced into the Plastic Credit mechanism, creating tangible financial value to support and scale environmental actions.

Our Approach:

As a project proponent of the LaoRefuel Plastic Credit Project,  we led and facilitated project development and stakeholder coordination alongside Lao Kayama and SEMC, driving the project toward Plastic Credit certification under Verra’s Plastic Program. Our work included the development of project documentation, data management systems, monitoring frameworks, and traceability mechanisms to ensure alignment with international Plastic Credit program requirements.

By strengthening operational transparency and accountability, the project successfully integrated its existing plastic waste recovery activities into a recognized certification framework, enabling the registration and verification of the project and the subsequent issuance of Plastic Credits based on verified quantities of plastic waste managed.

Our Value:

Plastic Credits serve as an innovative financial mechanism that supports the long-term sustainability of plastic waste collection and management activities. Through certification under the Verra’s Plastic Program, the project demonstrates that collected plastic waste is managed in accordance with internationally recognized standards and undergoes independent third-party verification.

This provides investors, corporations, and sustainability-focused organizations with confidence that their support contributes to measurable and verifiable reductions in plastic pollution. The Plastic Credit framework enhances transparency, accountability, and impact assurance, ensuring that environmental contributions generate real and traceable outcomes for both communities and the environment.

See more about this project: Press Release_LaoRefuel Plastic Credit Project