The Ministry of Environment and the Global Green Growth Institute (GGGI) launched a project aimed at helping banks mobilise climate financing effectively on July 15. Supplied
The Ministry of Environment and the Global Green Growth Institute (GGGI) have announced the launch of a project that will provide support to local banks to mobilise climate finance effectively, implement climate-resilient initiatives and gain accreditation from the Green Climate Fund (GCF).
The “Capacity Building and Accreditation Support of Direct Access Entity to Private Banks for On-Lending and/or Blending Fiduciary Functions” project aims to enhance the capabilities of three selected banks: the Foreign Trade Bank of Cambodia (FTB), ACLEDA Bank Plc (ACLEDA) and Advanced Bank of Asia Limited (ABA).
The two-year project, funded by the GCF, seeks to address the country’s financial gap in global warming mitigation and adaptation, with costs estimated at over $5.8 billion and $2 billion, respectively, as outlined in the country's Nationally Determined Contribution (NDC).
“This project represents the culmination of our persistent efforts and strategic planning. It is designed to navigate the intricacies of climate finance by enhancing capacity and promoting knowledge sharing.
“Our goal is to equip stakeholders – including financial institutions, government agencies and the private sector – with the necessary tools to effectively mobilise climate finance and implement climate-resilient initiatives,” highlighted ministry secretary of state Choup Paris.
GGGI Cambodia country representative Shomi Kim emphasised the organisation's commitment to green financing efforts.
“GGGI’s green investment initiatives aim to enhance the capacity of local financial institutions to access climate finance more effectively. This project will support candidate banks through the GCF accreditation process and assist them in identifying and developing climate projects that can attract financing from the GCF, which has already committed $13 billion and has $22 billion in the pipeline globally,” she said.
The project launch workshop, held by the ministry in collaboration with GGGI, saw participation from the private sector, including the Association of Banks in Cambodia (ABC), the Cambodia Microfinance Association (CMA) and representatives from the microfinance and banking industries.
Key government entities, such as the National Bank of Cambodia (NBC), the Securities and Exchange Regulator of Cambodia (SERC) and the Ministry of Economy and Finance were also in attendance.
Based in Seoul, GGGI is a treaty-based international, inter-governmental organisation with 48 member states and operations in 51 countries. It supports the transition to a low-carbon green economy by providing policy advice, technical support and mobilising green investments.
The GCF is a global initiative established under the UN Framework Convention on Climate Change (UNFCCC) to support developing countries in addressing climate change based in South Korea.
