Cambodia launches $20 million energy efficiency fund to help SMEs cut costs and go green

PHNOM PENH, July 2, 2026 (KPT) – Cambodia has launched a US$20 million Energy Efficiency Revolving Fund (EERF) to help small and medium-sized enterprises (SMEs) invest in energy-saving technologies, reduce operating costs and support the country’s transition to a greener economy, officials said Wednesday.

The fund, established under the Energy Transition Sector Development Program, is backed by the Royal Government of Cambodia, the Asian Development Bank (ADB) and the United Kingdom. It aims to improve SMEs’ access to affordable financing for energy-efficiency investments while accelerating Cambodia’s clean energy transition.

“This initiative is an important step forward in Cambodia’s clean energy transition,” said Abigail Fryer, Deputy Head of Mission at the British Embassy in Phnom Penh. She noted that energy efficiency is the most cost-effective way to reduce emissions, strengthen energy security and lower business costs. The UK is contributing US$12 million to the fund through the ASEAN Catalytic Green Finance Facility.

ADB Cambodia Country Director Yasmin Siddiqi said the revolving fund comes at a critical time as Cambodia seeks to strengthen energy security and improve the competitiveness of its businesses.

She noted that SMEs account for more than 90 percent of businesses in Cambodia but often face difficulties accessing financing, particularly women-owned enterprises. Although energy-efficiency projects require upfront investment, they can generate rapid returns through lower electricity consumption, reduced operating costs and higher productivity.

“The Energy Efficiency Revolving Fund has been designed precisely to address these barriers,” Siddiqui said. “By providing SMEs with access to financing on more favorable and tailored terms, businesses will be able to invest in modern energy-saving equipment and practices, reducing their energy costs, improving productivity and lowering their reliance on imported fuels.”

Ty Norin, Permanent Secretary of State at the Ministry of Mines and Energy, said Cambodia aims to achieve 70 percent renewable energy generation capacity by 2030 while cutting energy consumption by 19 percent. He described energy efficiency as “the first fuel” because “the cheapest, cleanest and most secure energy is the energy we do not need to consume.”

Phan Phalla, Secretary of State at the Ministry of Economy and Finance and Chairman of SME Bank Cambodia, said the fund addresses a financing gap that has hindered implementation of Cambodia’s energy efficiency strategy. Under the Energy Efficiency Financing Scheme, eligible SMEs can access loans of up to US$1 million, with repayment terms of up to 10 years and concessional interest rates of up to 5.5 percent to invest in energy-efficient equipment and renewable technologies.

The facility will be implemented by SME Bank of Cambodia, with credit guarantees provided by the Credit Guarantee Corporation of Cambodia (CGCC). CIMB Bank Plc and the Foreign Trade Bank of Cambodia (FTB) are the first participating financial institutions.

Officials said the fund is expected to help businesses improve productivity, lower energy costs and contribute to Cambodia’s long-term green growth and energy security goals.