The International Finance Corporation (IFC), in collaboration with the Association of Banks in Cambodia (ABC), held a green finance training seminar for members of the banking community on October 17. IFC
As part of its contribution to reducing the impacts of climate change and fostering a sustainable financial ecosystem in Cambodia, the International Finance Corporation (IFC) is collaborating with the Association of Banks in Cambodia (ABC) to boost the capacity of local financial institutions in the climate finance space.
“Cambodia will need an additional $36 billion in investments from both the private and public sectors between 2023 and 2050 to achieve its climate goal of achieving carbon neutrality by 2050, according to the World Bank-IFC Cambodia Country Climate and Development Report (CCDR),” said an October 17 IFC press release.
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The IFC is the largest global development institution focused on the private sector in emerging markets, working in over 100 countries. In the 2024 fiscal year, it committed a record $56 billion to private companies and financial institutions in developing countries.
To address the need to unlock capital for climate-friendly projects, an October 17 training workshop was held for over 100 bankers. The session aimed to give them the skills and knowledge they need to drive sustainable finance initiatives.
“The event was part of a wider cooperation between IFC and National Bank of Cambodia (NBC) to boost green finance through the development of capital markets in the country. Facilitated by IFC experts and key stakeholders, NBC and the Securities and Exchange Regulator of Cambodia, the sessions covered a range of topics – from Cambodia’s Sustainable Finance Taxonomy and Environmental and Social Risk Management Guidelines, which are works in progress, to the latest trends and opportunities in sustainable finance,” explained the release.
“The importance of sustainable finance cannot be overstated,” said Towfiqua Hoque, the newly appointed IFC resident representative for Cambodia. “It is not just about mitigating risks associated with climate change, but also about seizing opportunities that come with the green transition. By integrating environmental, social and governance considerations into the financial systems, we can create a more resilient and inclusive economy.”
According to the release, in her new role, Hoque will spearhead IFC's initiatives to bolster the country’s financial sector, advance renewable energy, promote green transport and logistics infrastructure and expand climate finance.
It warned that several factors are currently hindering the Kingdom’s green finance potential, including a lack of guidance on what qualifies as green finance and limited green policies among local financial institutions to innovate and introduce sustainable finance practices and products.
“Cambodia is at a critical juncture where climate change impacts are becoming increasingly evident, and there is an urgent need to build capacity and expertise within the financial sector to effectively manage and promote green finance initiatives,” said Dith Sochal, ABC Council Member and chairperson of its Sustainable Finance Committee. “The training provided participants with valuable insights and practical strategies that they will take back to their respective institutions.”
The release explained that given that the country is highly vulnerable to floods, droughts, and rising sea levels, the CCDR has estimated that without proper adaptation and mitigation measures, climate change could cost Cambodia up to 9 per cent of its gross domestic product by 2050.
“The World Bank Group recently approved its Country Partnership Framework for Cambodia for 2025-2029, which focuses on promoting the country’s human capital to enhance competitiveness and foster resilience,” it said.
“IFC’s efforts aim to support a strong and competitive private sector, which will play a pivotal role in driving the country’s next phase of low-carbon and sustainable economic development,” added Hoque.
