The International Finance Corporation (IFC) announced a collaboration with the Association of Banks in Cambodia (ABC) to enhance the capabilities of local financial institutions in climate finance and address the impacts of climate change.
As per the World Bank-IFC Cambodia Country Climate and Development Report (CCDR), Cambodia aims to achieve carbon neutrality by 2050 and requires an additional $36 billion in investments from both the private and public sectors between 2023 and 2050.
To help bridge this gap, IFC and ABC conducted a training program on October 17 to equip over hundred Cambodian bankers with the necessary knowledge and tools to support sustainable finance initiatives.
This initiative is part of a broader collaboration between IFC and the National Bank of Cambodia (NBC) to enhance green finance through capital market development.
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The training program, led by experts from IFC, NBC, and Cambodia’s Securities and Exchange Regulator, covered topics such as Cambodia’s ongoing Sustainable Finance Taxonomy, Environmental and Social Risk Management Guidelines, and emerging trends and opportunities in sustainable finance.
Towfiqua Hoque, the IFC Resident Representative for Cambodia, said, “The importance of sustainable finance cannot be overstated.”
She added, “It is not just about mitigating risks associated with climate change, but also about seizing opportunities that come with the green transition. By integrating environmental, social, and governance (ESG) considerations into the financial systems, we can create a more resilient and inclusive economy.”
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Cambodia faces hurdles in unlocking its green finance potential, including a lack of clear guidelines for defining green finance and limited innovation among local financial institutions in developing sustainable finance practices.
Without proper adaptation and mitigation efforts, climate change could cost Cambodia up to 9% of its gross domestic product (GDP) by 2050, as estimated by the CCDR.
The World Bank Group recently approved a Country Partnership Framework for Cambodia for 2025-2029, which focuses on promoting human capital and resilience to enhance competitiveness.