Phnom Penh: ABC and ADB have announced a strategic partnership aimed at enhancing climate financial products in Cambodia. This collaboration seeks to address the growing need for sustainable financing solutions in the region, focusing on projects that combat climate change and promote environmental sustainability.
According to Agence Kampuchea Presse, the partnership will leverage the strengths of both organizations to develop innovative financial products tailored to the Cambodian market. These products are expected to support local businesses and communities in adopting environmentally friendly practices and technologies. The initiative is part of a broader effort to foster sustainable economic growth and mitigate the impacts of climate change in Southeast Asia.
The collaboration between ABC and ADB underscores the importance of joint efforts in tackling climate-related challenges. By pooling resources and expertise, the two organizations aim to create a more resilient and sustainable financial ecosystem in Cambodia. This move is anticipated to set a precedent for similar initiatives in other regions, highlighting the critical role of financial institutions in driving environmental change.
The Association of Banks in Cambodia (ABC) and the Asian Development Bank (ADB) have co-organised a consultation workshop on the ADB Climate Banking Accelerator Programme for Cambodian banks.`The consultation workshop was conducted at Hyatt Regency Phnom Penh early this week with roughly 100 participants from banking institutions and relevant stakeholders.`According to a press release issued on Feb. 20, the programme aimed to increase the capability of specific financial institutions (Fis) through a variety of advising activities that complement FI’s net zero pathways and the goals of the Paris Agreement, and lead to more bankable climate finance product pipelines.`The session also provided an overview of advisory modules and implementation support provided by ADB’s Climate Banking Accelerator Programme, and identify and connect with financial institutions interested in advisory services under the programme.`Climate change is no longer a distant threat but a present reality, said Mr. Dith Sochal, Chairman of
the ABC’s Sustainable Finance Committee, adding that rising temperatures, extreme weather events, and environmental degradation are impacting economies, communities, and ecosystems across the globe, and Cambodia is no exception.`He continued that the ABC alongside its members has set sustainable finance as the prioritised agenda.`’We are committed to elevating the performance in these areas, aligning with the ASEAN Taxonomy and Cambodian Sustainable Finance Roadmap to promote sustainable finance practices, enhance capacity and knowledge, advocate for supportive policies, and foster collaboration and partnerships.’ Mr. Sochal added.`Cambodia faces a significant climate financing gap, and banks and financial institutions have a key role to play in mobilising finance for mitigation and adaptation, said Mrs. Jyotsana Varma, ADB Country Director for Cambodia.`”Working together with our partners in the National Bank of Cambodia and the Association of Banks in Cambodia, the Asian Development Bank is delivering a tar
geted technical assistance programme, the Climate Banking Accelerator, to help financial institutions to assess climate-related risks and opportunities, and develop innovative finance instruments to encourage climate investment by the private sector,’ she said.`In 2023, ADB approved Technical Assistance: Accelerating Private Sector Development for Green and inclusive growth in Southeast Asia to build capacity of private sector financial intermediaries in Southeast Asia to drive the economic shift to low carbon and climate resilient growth.`