Cambodia Looks to Banks to Help Fund a Greener Future

Cambodia is stepping up efforts to tackle climate change, but achieving its environmental goals will require a massive financial commitment. Experts estimate the country will need more than $32 billion in green investment by 2035 to support emissions reduction targets and build a climate resilient economy. The issue took center stage during a two day workshop held in Phnom Penh on May 26, 2026, where government officials, regulators, banking leaders, and development partners gathered to discuss sustainable finance and climate risk management.

The event, jointly organized by the Association of Banks in Cambodia and the Global Green Growth Institute, highlighted the growing role that financial institutions must play in supporting the country’s climate transition. With climate related regulations evolving and new disclosure standards on the horizon, Cambodia’s banking sector is being encouraged to increase financing for sustainable projects while strengthening its ability to manage environmental risks.

New Financial Frameworks Aim to Unlock Green Investment

One of the key topics discussed during the workshop was the implementation of Cambodia’s Sustainable Finance Taxonomy and the upcoming adoption of IFRS Sustainability Disclosure Standards. These frameworks are designed to help banks identify, classify, and report green investments more effectively.

Industry leaders believe these measures will improve transparency, strengthen climate related reporting, and make it easier for Cambodian financial institutions to access international climate finance. More importantly, they are expected to create greater confidence among investors looking to fund environmentally sustainable projects in the Kingdom.

The workshop brought together more than 100 participants from government ministries, regulators, banks, and financial institutions. Discussions focused on practical steps the financial sector can take to align with global sustainability standards while supporting national development goals.

For more developments in Cambodia’s financial sector, readers can explore related coverage from the original source at Cambodia Investment Review.

Why Cambodia Needs More Than $32 Billion?

Cambodia remains highly vulnerable to climate change because much of its economy depends on agriculture, fisheries, and water resources. Rising temperatures, changing rainfall patterns, floods, and droughts continue to threaten livelihoods and economic growth.

To address these challenges, the government has pledged to cut greenhouse gas emissions by as much as 55 percent by 2035 under its Third Nationally Determined Contribution, also known as NDC 3.0. Achieving that ambition will require significant investment in renewable energy, sustainable infrastructure, climate adaptation projects, and other green initiatives.

Government estimates show that more than $32 billion in financing will be needed over the next decade to turn those plans into reality. This funding requirement is far beyond what public budgets alone can provide, increasing the importance of private sector participation.

Financial Institutions Expected to Close the Funding Gap

Banking leaders emphasized that commercial banks and financial institutions will play a critical role in mobilizing capital for climate related investments.

“The private sector, particularly the financial sector, plays a pivotal role in closing the climate finance gap by mobilizing, allocating and scaling up the finance required to achieve national climate mitigation and adaptation targets,” said Dith Sochal, ABC Council Member and Chairman of the Sustainability Committee.

He stressed that government funding by itself will not be enough to support Cambodia’s transition toward a low carbon economy. Greater involvement from the banking industry will be necessary to channel investment into projects that contribute to both environmental sustainability and economic growth.

As global investors increasingly prioritize sustainability, financial institutions that adopt green finance practices may also gain access to new funding opportunities and international partnerships.

Climate Risk Is Now a Financial Risk

Climate change is no longer viewed solely as an environmental issue. Financial experts are increasingly warning that it poses direct risks to banks, businesses, and investment portfolios.

Nathalie André, Country Representative of GGGI Cambodia, highlighted the growing need for financial institutions to strengthen their climate risk management capabilities. This includes developing expertise in climate risk assessment, stress testing, and sustainability reporting.

“Climate risk is financial risk,” André said, adding that strengthening these capacities would help expand Cambodia’s access to global climate funding mechanisms.

Improved reporting and risk management could also position Cambodian banks to benefit from international climate finance programs. Among them is the Green Climate Fund, one of the world’s largest climate financing institutions, which currently manages more than $30 billion in capital and supports climate projects across developing countries.

Government Sees Opportunity in Climate Action

While climate change presents significant challenges, the Cambodian government also sees opportunities for economic growth through sustainable development.

Speaking at the workshop’s opening ceremony, Minister of Environment H.E. Dr. Eang Sophalleth said the country is working to transform environmental challenges into new investment opportunities. He highlighted the government’s commitment to implementing the sustainability goals outlined in Cambodia’s Circular Strategy on Environment while strengthening resilience against future climate impacts.

The minister explained that Cambodia’s NDC 3.0 serves as a roadmap for attracting both domestic and international investment into renewable energy projects, sustainable infrastructure, and climate adaptation measures.

By creating a supportive regulatory environment and encouraging green investment, the government hopes to position Cambodia as an increasingly attractive destination for sustainable finance.

Building Capacity for the Future

As sustainable finance regulations continue to develop, experts agree that education and capacity building will be essential for successful implementation.

Banks and financial institutions will need the knowledge, tools, and resources necessary to comply with emerging disclosure requirements and climate risk standards. Strengthening these capabilities could help attract international investors while ensuring the financial sector remains resilient in a changing climate landscape.

The Association of Banks in Cambodia and the Global Green Growth Institute also expressed appreciation to the Ministry of Environment, the National Council for Sustainable Development, and the Green Climate Fund for their ongoing support in advancing sustainable finance and climate resilience initiatives across the country.

Conclusion

Cambodia’s journey toward a greener and more climate resilient economy will require substantial investment and strong collaboration between the public and private sectors. With more than $32 billion needed by 2035, the banking industry is expected to become a central driver of sustainable finance. As new disclosure standards and climate risk frameworks take shape, financial institutions have an opportunity not only to support national climate goals but also to unlock new sources of growth and international investment for the country’s future.

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Cambodia is taking another meaningful step toward inclusive economic growth with the launch of the #MadeByHer campaign, a new initiative designed to elevate women-led products and businesses. Spearheaded by the Ministry of Women’s Affairs and the Ministry of Commerce, the campaign focuses on improving product quality, strengthening branding, and expanding access to both local and international markets.

Empowering Women Across the Production Chain

At its core, the campaign is about more than just promoting products made by women. It aims to unlock and amplify the full potential of women across Cambodia’s production landscape. Speaking at the launch event in Phnom Penh, Minister of Women’s Affairs Ing Kantha Phavi emphasized that the initiative is not about separating women’s products, but about recognizing their contributions and helping them thrive in a competitive market.

“Products made by women are often connected to many stories—born from hard work, perseverance, creativity, and hope. These stories give women’s products a unique value and identity, reflecting the strength, excellence, and courage of women for their families and communities,” she said.

This perspective reinforces the idea that women entrepreneurs are not only producers but also storytellers whose work carries cultural and social significance.

Expanding Market Access and Visibility

One of the campaign’s key priorities is to connect women-led products with wider markets. This includes placing products in supermarkets, showcasing them at trade fairs, and promoting them on digital platforms. By doing so, the initiative seeks to increase visibility and create new commercial opportunities for women entrepreneurs.

The campaign also involves collaboration with private sector partners, development organizations, and local communities to ensure that women receive the support they need to grow their businesses. From improving packaging to meeting quality standards, the goal is to help transform small-scale enterprises into competitive brands.

Building Stronger Women-Led Brands

Minister of Commerce Cham Nimul highlighted that #MadeByHer is designed to help Cambodian women entrepreneurs scale up their businesses and compete at a national level. The initiative places strong emphasis on enhancing product quality and presentation to meet evolving consumer expectations.

By focusing on branding, standards, and innovation, the campaign aims to position women-led products as reliable and desirable choices in both domestic and global markets. It also encourages consumers to actively support locally made goods, especially those created by women.

What Is the #MadeByHer Initiative and Why It Matters?

The #MadeByHer campaign is part of the broader National Products #MadeinCambodia initiative, launched to promote locally produced goods and strengthen the country’s economic identity. This national movement aims to increase the recognition, quality, and competitiveness of Cambodian products in both local and international markets.

The initiative was established to reduce reliance on imports, support local producers, and build a stronger, more self-sustaining economy. By encouraging consumers to choose Cambodian-made products, it helps circulate income within the country while creating jobs and fostering innovation.

Within this larger framework, #MadeByHer plays a targeted role by ensuring that women entrepreneurs are not left behind, but instead become key drivers of economic growth.

A Collective Effort for Inclusive Growth

Leaders from both ministries have called on stakeholders across sectors to support the campaign. This includes women entrepreneurs, private companies, development partners, and the general public. The shared goal is to create more opportunities for women while promoting sustainable and inclusive economic development.

By investing in women-led businesses, Cambodia is not only supporting gender equality but also strengthening its overall economic resilience.

Conclusion

The #MadeByHer campaign represents a strategic effort to empower Cambodian women entrepreneurs and elevate their role in the national economy. As part of the wider #MadeinCambodia initiative, it highlights the importance of local production, quality improvement, and market expansion. By supporting women-led products, Cambodia is building a more inclusive, competitive, and sustainable economic future where local talent and innovation can truly thrive.

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Cambodia’s Ambitious Infrastructure Master Plan: A Blueprint for Economic Growth

Cambodia has set its sights on transformative development with an ambitious infrastructure master plan that promises to reshape the nation by 2033. With a vision to establish Cambodia as a regional transport and logistics hub, the Royal Government has unveiled the Comprehensive Intermodal Transport and Logistics System (CITLS) 2023–2033, a blueprint that encompasses expressways, airports, railroads, ports, and state-of-the-art logistics facilities. This grand vision comes with a significant price tag of $36.6 billion, but the benefits it promises far outweigh the costs.

The Vision: Building Connectivity and Reducing Inefficiencies

At the heart of this transformative plan lies the Royal Government’s broader goal of enhancing connectivity, addressing logistical challenges, and supporting economic growth. By 2033, Cambodia aims to foster seamless domestic and regional transportation networks, ultimately improving the quality of life for its citizens.

A report from the Ministry of Public Works and Transport (MPWT) outlines 174 priority projects divided into:

• 94 road projects
• 8 railway projects
• 23 river transport projects
• 20 sea transport projects
• 10 air transport projects
• 15 logistics projects
• 4 additional projects

These initiatives have been strategically categorized into short- and medium-term projects (2023–2027) and long-term projects (2028–2033), ensuring a phased and efficient approach to implementation.

Major Highlights of the Master Plan

Road Infrastructure Expansion

The road infrastructure component involves constructing nine expressways and upgrading 85 national and provincial roads at an estimated cost of $13.6 billion. These upgrades aim to enhance regional connectivity, reduce travel time, and support equitable economic development.

Expressways will handle increasing traffic volumes and foster regional integration, while the improved national and provincial roads will bolster rural accessibility, ensuring the benefits of development are widely distributed.

Railway Modernization

Rail transport is pivotal to Cambodia’s infrastructure strategy. With $10.01 billion allocated for eight railway projects, the plan focuses on upgrading existing lines to high-speed rail standards and exploring new routes.

In the short term (2023–2027), four projects worth $3.8 billion are prioritized, including upgrades to existing rail networks. The remaining four long-term projects (2028–2033), estimated at $6.2 billion, aim to enhance connectivity and trade with neighboring countries.

Maritime and River Transport Development

Under the Port Law of 2024, Cambodia has prioritized 20 maritime transport projects with a total investment of $5.4 billion. These projects aim to boost port capacity and integrate the nation into global trade networks.

Additionally, 23 river transport projects with a combined cost of $3.2 billion are set to improve inland waterway transportation, reduce logistics costs, and promote sustainable trade. Flagship initiatives like the Funan Techo Canal reflect the government’s commitment to innovative and impactful solutions.

Aviation Expansion

Cambodia is embracing aviation’s potential with 10 projects designed to meet the rising demand for air transport. With an investment of $3.2 billion, the plan includes developing new airports, modernizing air traffic systems, and expanding existing facilities to accommodate increased passenger and cargo volumes.

These initiatives aim to position Cambodia as a regional aviation hub, supporting tourism, trade, and economic diversification.

Logistics Enhancements

The CITLS master plan identifies 15 key logistics projects requiring a total investment of $957.5 million. These projects aim to modernize Cambodia’s supply chain, improve transportation efficiency, and reduce costs, thereby boosting the competitiveness of Cambodian industries.

Ensuring Transparency and Accountability

The Royal Government has emphasized strict adherence to standard procedures for public investment projects, ensuring transparency and optimal resource utilization. Key steps include:

• Feasibility studies and proposal reviews
• Transparent project selection and budgeting
• Efficient project management and implementation
• Periodic evaluations and revisions

This meticulous approach underscores the government’s commitment to sustainable and accountable infrastructure development.

Transforming Lives and Driving Economic Growth

Prime Minister Hun Manet, speaking at the inauguration of the Techo Santepheap Coastal Highway in 2024, highlighted the transformative potential of Cambodia’s infrastructure plans. “Efforts in building roads, waterways, railways, and airways are crucial to ensuring sustainable economic growth and enhancing local activities,” he remarked.

The Prime Minister also pointed to key projects like the Funan Techo Canal and the Sihanoukville Port expansion, which reflect the administration’s dedication to national progress.

MPWT Minister Peng Ponea emphasized that the CITLS master plan aligns with the Cambodia Industrial Development Policy 2015–2025 and the Pentagon Strategy Phase 1, ensuring that infrastructure improvements contribute to sustainable and inclusive growth.

Funding Cambodia’s Infrastructure Vision

Spokesperson Phan Rim outlined the funding strategy for the master plan, which includes:

1. Public investment budgets
2. Contributions from development partners
3. Private sector investments
4. Public-private partnerships (PPPs)

These diverse funding sources are expected to secure the financial resources necessary for successful implementation and long-term development.

The Road Ahead

Cambodia’s infrastructure master plan is more than a blueprint for economic growth—it is a transformative vision that promises to uplift the nation and its people. With a strategic focus on connectivity, efficiency, and sustainability, the Royal Government is poised to achieve its ambitious goals of elevating Cambodia to high-middle-income status by 2030 and high-income status by 2050.

As these projects take shape, Cambodia is set to emerge as a regional transport and logistics hub, paving the way for a brighter and more prosperous future.

What are your thoughts on Cambodia’s ambitious infrastructure plans? Share your opinions below!

This version maintains the data and quotes from the original while improving grammar, readability, and flow.

Source: Khmer Times

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