Cambodia launches $109 million green finance facility to mobilize private climate investment

PHNOM PENH, June 17, 2026 (KPT) — Cambodia has launched a US$109 million Climate Change Financing Facility (CCFF) to mobilize private‑sector investment in green and climate‑resilient projects, officials said Wednesday, marking a major step in the country’s efforts to tackle climate change while advancing sustainable growth.

The facility, established through the Agricultural and Rural Development Bank (ARDB), is backed by the Green Climate Fund (GCF) and development partners. Officials described it as the first national climate finance facility for the private sector in Asia.

The financing package includes US$50 million in loans and US$5 million in technical assistance from the GCF, alongside US$54 million in co‑financing from Cambodia’s Ministry of Economy and Finance and other partners.

ARDB Director General Kao Thach said the CCFF is designed to support green businesses and investments that cut greenhouse gas emissions, strengthen resilience and promote sustainable development. He said the initiative aligns with the government’s Pentagonal Strategy and Cambodia’s long‑term vision of achieving carbon neutrality by 2050.

“The launch of the Climate Change Financing Facility will help promote green economic development and green businesses in Cambodia,” Thach said. He added that Cambodia is currently the only country in the Asia‑Pacific region able to access GCF resources through the Korea Development Bank, underscoring its growing role in regional climate finance.

Cheng Kimsun, Secretary of State at the Ministry of Environment, described the CCFF as a strategic initiative to mobilize additional resources for climate action and expand investment in priority sectors. The facility aims to provide long‑term concessional financing while attracting private capital into projects related to climate mitigation and adaptation.

Ros Seilava, Secretary of State at the Ministry of Economy and Finance, said the launch comes at a critical time as countries face mounting pressures from climate change, shifting trade dynamics and global uncertainty.

The CCFF is expected to accelerate Cambodia’s transition toward a greener economy by improving access to climate finance for businesses and encouraging investment in environmentally sustainable projects.