Cambodia's Green Finance Network Launched to Meet $32 Billion Climate Goals

The Association of Banks in Cambodia (ABC) and the Global Green Growth Institute (GGGI) have launched the Green Finance Network (GFN Cambodia), a new initiative designed to mobilize green investments and facilitate Cambodia's transition to low-carbon infrastructure. The inaugural meeting brought together 50 representatives from various sectors, including commercial banks, financial institutions, and international organizations.

According to the ABC, the GFN Cambodia aims to address the significant funding gap for low-carbon building projects in the country. Cambodia has set ambitious climate targets under its Nationally Determined Contributions (NDC) 3.0 commitments, aiming to reduce greenhouse gas emissions by up to 55% by 2035. Achieving these goals will require over $32 billion in green investments over the next decade, as reported by the GGGI.

“This platform comes at a timely moment as ABC continues to support its member banks and financial institutions in expanding their green finance portfolios.”Mr. Dith Sochal, ABC Council Member

Mr. Dith Sochal, a member of the ABC Council and Chairman of the ABC’s Sustainability Committee, emphasized the importance of the new platform, stating, “This platform comes at a timely moment as ABC continues to support its member banks and financial institutions in expanding their green finance portfolios.” He noted that the initiative aligns with the Cambodia Sustainable Finance Principles (CSFP) and the National Bank of Cambodia’s Sustainable Finance Taxonomy.

“Public finance alone cannot deliver this transition—the financial sector has a pivotal role in mobilizing, allocating, and scaling the capital needed.”Ms. Nathalie Andre, Country Representative of GGGI Cambodia

Ms. Nathalie Andre, Country Representative of GGGI Cambodia, highlighted that public finance alone cannot achieve the necessary transition. “This collaboration reflects a deliberate, growing partnership between GGGI and ABC to help Cambodia’s banks build institutional readiness,” she said, indicating the need for a structured approach to enhance the financial sector's capacity in green finance.

The establishment of GFN Cambodia is part of the five-year Asia Low Carbon Buildings Transition (ALCBT) project, which aims to foster regional integration and develop actionable strategies for low-carbon investments. As Cambodia faces increasing vulnerability to climate change, initiatives like the GFN are critical for ensuring sustainable economic growth and environmental resilience.