Phnom Penh, Cambodia, May 26, 2026 – As Cambodia’s banking sector strengthens its role in advancing climate action and sustainable development, the financial institutions are prioritizing funding for green projects. To support this mission, the Association of Banks in Cambodia (ABC) and the Global Green Growth Institute (GGGI) hosted a two-day workshop. Under the theme “Sustainable Finance, Taxonomy, IFRS Sustainability Disclosure Standards, and Climate Risk”, the event focused on how banks can better manage climate risks and direct more funding toward projects that support sustainable development across the country. The event brought together more than 100 participants, including representatives of line ministries, regulators, banks and financial institutions.

Cambodia is among the countries most vulnerable to climate change, particularly because its economy depends heavily on agriculture, water resources, and fisheries. To safeguard its future, the government has introduced ambitious climate measures, including a target to reduce greenhouse gas emissions by up to 55% by 2035. Achieving this goal will require more than $32 billion in green investment over the next decade.

“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 ABC Council Member and Chairman of Sustainability Committee, Mr. Dith Sochal. He continued, “Given the scale of investment needed to transition toward low-carbon and climate-resilient development pathways, public finance alone remains limited, making the active participation of the financial sector essential.”

Mrs. Nathalie André, GGGI Cambodia Country Representative, highlighted: “climate risk is financial risk. Banks therefore need stronger capacity in climate risk assessment, stress testing, and sustainability disclosure. Strengthening these capacities will be essential not only to improve resilience within the financial system, but also to expand Cambodia’s access to international climate finance.”

Delivering the opening remarks, H.E. Dr. Eang Sophalleth, Minister of Environment, reaffirmed the Ministry of Environment’s continued commitment to climate action, sustainable development, and strengthening national efforts to achieve Cambodia’s Third Nationally Determined Contribution (NDC 3.0) through climate finance. H.E. Eang Sophalleth, said, “Cambodia has transformed its climate change vulnerabilities into strategic opportunities to achieve the third pillar—Sustainability—of our Circular Strategy on Environment and to build resilience on the international stage. Through our national NDC 3.0 plan, we have set an ambitious target to reduce greenhouse gas emissions by 55% by 2035, an endeavor that requires over $32 billion in green investments. This serves as a vital mechanism to mobilize resources from the GCF, which already holds a capital base of over $30 billion, enabling us to co-create ‘innovative financial instruments’ that guarantee a clean, green, and sustainable future for Cambodia.”

Given the recent launch of the Sustainable Finance Taxonomy for the Cambodian Banking Sector by the National Bank of Cambodia and the future adoption of the IFRS Sustainability Disclosure Standards Roadmap in Cambodia, led by the Accounting and Auditing Regulator, banks and financial institutions need to strengthen their institutional capacity and readiness to effectively implement these frameworks in line with national priorities and emerging international practices, while also enhancing Cambodia’s attractiveness to international investors and climate finance sources. The ABC and GGGI thank the Ministry of Environment, the National Council for Sustainable Development and Green Climate Fund for their continuous support in building a greener future for Cambodia.