Cambodia Moves to Boost Green Economy with $30 Million Climate Financing Deal

PHNOM PENH, April 21, 2026 (KPT) — Cambodia is stepping up its transition toward a greener economy with a $30 million climate financing initiative aimed at supporting sustainable businesses and strengthening resilience, officials said Tuesday.

The facility was established through a partnership between the Agricultural and Rural Development Bank (ARDB) and the Green Climate Fund, marking a milestone in expanding access to green finance in the Kingdom.

ARDB Director General Kao Thach said the agreement has been finalized, with initial funding set to support enterprises in key sectors. Investments will prioritize sustainable agriculture, environmentally friendly businesses and renewable energy, particularly solar power, seen as critical to reducing emissions and promoting long term sustainability.

As a state policy bank, ARDB channels government backed financing into priority sectors. Its programs provide low interest loans to small and medium sized enterprises across agricultural and agro industrial value chains, including rice, horticulture, livestock and aquaculture.

Currently, green lending accounts for about four percent of ARDB’s portfolio, but officials said the new partnership is expected to significantly scale up financing for environmentally sustainable projects.