Phnom Penh, Cambodia, October 17, 2024—To address the impacts of climate change and foster a sustainable financial ecosystem, IFC is collaborating with the Cambodian Bankers Association (ABC) to support local finance in the climate finance sector. Strengthening institutional capacity.
According to the World Bank and IFC Cambodia Climate and Development Report (CCDR), Cambodia needs an additional $36 billion in public and private funding from 2023 to 2050 to reach its climate goal of carbon neutrality by 2050. Investment is required.
A training program to address the need to free up capital for climate-friendly projects and provide more than 100 bankers with the knowledge and tools they need to drive sustainable finance initiatives launches in October Organized on the 17th. The event was part of a broader collaboration between IFC and the National Bank of Cambodia (NBC) to promote green finance through the development of the country’s capital markets. Facilitated by IFC experts and key stakeholders, NBC, and the Cambodian Securities and Exchange Regulatory Authority, the session covered everything from developing sustainable finance taxonomies and environmental and social risk management systems to financial institutions’ latest A wide range of topics were covered, ranging from trends and opportunities. sustainable finance.
“The importance of sustainable finance cannot be overstated. It is not only about mitigating the risks associated with climate change, but also about seizing the opportunities associated with the green transition,” said IFC Cambodia’s new resident. said Toufikwa Haque, who was appointed as the representative. “Integrating environmental, social and governance considerations into financial systems can create more resilient and inclusive economies.”
In his new role, Mr. Hoque will spearhead IFC’s efforts to strengthen the country’s financial sector, promote renewable energy, promote green transportation and logistics infrastructure, and expand climate finance.
Currently, several factors are contributing to Cambodia’s hindering financial possibilities.
“Cambodia is at a critical juncture where the impacts of climate change are becoming increasingly apparent, and there is an urgent need to build capacity and expertise within the financial sector to effectively manage and promote green finance initiatives. ” said Mr. Dis Social of the Cambodian Banking Association. Council Member and Chair of the Sustainable Finance Committee. “This training provided participants with valuable insights and practical strategies that they can take back to their respective institutions.”
Given that the country is highly vulnerable to floods, droughts and sea level rise, the CCDR estimates that without appropriate adaptation and mitigation measures, climate change could contribute up to 9% of Cambodia’s gross domestic product by 2050. It is estimated that this could result in losses.
The World Bank Group recently approved the Cambodia Country Partnership Framework for 2025-2029, with a focus on promoting the country’s human capital to strengthen competitiveness and promote resilience. Hawke continued, “IFC’s work supports a strong, competitive private sector that plays a vital role in driving the next phase of this country’s low-carbon, sustainable economic development. “It is aimed at,” he added.
