GGGI, UNESCAP and SERC sign MOA and launch the Cambodia Sustainable Bond Accelerator Program

22 February 2023, The Global Green Growth Institute enters into partnership with​ the United Nations Economic and Social Commissions for Asia and the Pacific (UNESCAP) and the Securities and Exchange Regulator of Cambodia (SERC) to expand Cambodia’s green and sustainable bond market through the Cambodia Sustainable Bond Accelerator Program

The Memorandum of Agreement which take place in Phnom Penh is penned by Ms. Shomi Kim, GGGI Country Representative to Cambodia, H.E. SOU Socheat, Delegate of the Royal Government in charge as Director General of the Securities and Exchange Regulator of Cambodia (SERC) and Adnan H. Aliani, Director of Strategy and Programme Management Division, UNESCAP, and were joined by private banks, governments and development partners.

The three organizations will work together to support the development and proliferation of Cambodia’s green and sustainable bond market and associated policies, tools, and mechanisms. Driven by the partnership, GGGI, UNESCAP and SERC along with two other organizations, Credit Guarantee and Investment Facility (CGIF), and GuarantCo part of the Private Infrastructure Development Group, launch the Cambodia’s Sustainable Bond Accelerator: Empowering issuers through Technical Assistance Programme to provide technical assistance and financial support to companies planning to issue green or sustainability bonds.

“This collaborative initiative from the Royal Government of Cambodia, the Securities and Exchange Regulator of Cambodia (SERC), in partnership with the Global Green Growth Institute (GGGI) and United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), represents a significant commitment to support the issuance of green and sustainability bonds in Cambodia. GGGI is honored to support the Royal Government of Cambodia in maturing the thematic bond market through private sector participation and enhancing the country’s sustainable finance in the pursuit of a greener economy.” said Dr. Frank Rijsberman, the Director-General of GGGI.

Recognizing that climate change is a major challenge in its development journey and is one of the most vulnerable countries to climate change, Cambodia has communicated its target pathways to reduce greenhouse gas emissions and transition to a green economy.

However, achieving these goals comes with a financial price. Without climate adaptation and mitigation investment, it is estimated that the impact of climate change could cost Cambodia 1 percent of GDP per year for the next decade and could potentially wipe out all economic gains by 2050. According to the latest NDCs, Cambodia’s climate mitigation and adaptation plans would require total funding of roughly $7.8 billion. Innovative financing instruments such as green and sustainable bonds have a strong potential to close this financing gap by driving institutional and private capital to prioritize the sustainability agenda.

“Green, sustainability and sustainability-linked bonds have demonstrated to be transformative investment vehicles to channel financing towards green and sustainable initiatives” said Armida Salsiah Alisjahbana, Under-Secretary-General of the United Nations and Executive Secretary of UNESCAP. The Under-Secretary-General continued, “through our partnership with SERC and GGGI we are proud to be working to accelerate financing towards climate adaptation and mitigation initiatives in Cambodia. We are also pleased that the initiative has generated collaboration and support from the CGIF and GuarantCo as key collaborators”.

The Cambodia Sustainable Bond Accelerator initiative builds on the UNESCAP, GGGI and SERC partnership which aims to accelerate the development of Cambodia’s green and sustainable bond market and associated policies, tools and mechanisms to facilitate financing towards climate mitigation and adaptation initiatives. Through a series of targeted measures focusing on both issuance and post-issuance processes, the partnership will contribute to enhancing the ability and interest of issuers in Cambodia to move from traditional bond issuance to green, sustainability and sustainability-linked issuance, and ultimately expand climate related investments in Cambodia.

The programme will select promising private issuers and provide them with:

  • Technical Assistance and Support: Issuance support based on best practices and international standards, review of green and sustainability bond framework and capacity building;
  • Enhanced Investment Support – Support for roadshows, connecting to investors, and credit enhancement where feasible.

Interested bond issuers who are seeking technical assistance through this program can submit their application on the SERC website.

The deadline for submission is on March 19. Please follow the link for submission of applications here.