In the morning of 16th November 2021, at Hotel Le Royal Phnom Penh, The NGO Forum on Cambodia (NGOF) organized a Consultation-Validation Workshop on draft findings and recommendations on Green Financing Policies Implementation in Cambodia. The purpose of the event is to provide opportunity to key stakeholders from the government line ministries including Ministry of Economy and Finance (MEF), National Bank of Cambodia (NBC), Securities and Exchange Regulator of Cambodia (SERC), development partners such as World Bank (WB), USAID, private sectors like Association of Banks in Cambodia (ABC), Agricultural and Rural Development Banks of Cambodia (ARDB), independent researchers, FFC member organizations to validate and give additional inputs to the draft findings and recommendations on green financing policies compliance in Cambodia. There were 35 participants (8 females) joined physically and virtually.
Objective of Study
• To identify green financing regulations and requirements that SERC (i) regulates (with particular emphasis on ESG, environmental and climate change, with alignment to UN principles of HR and business criteria, and Fair Finance Guide Methodology including but not limited to other ESG principles like Equator principles and Cambodia Sustainable Banking Principles where possible), (ii) the progress and challenges in enforcing these regulatory processes, and (iii) the trends of enforcing green financing regulations by SERC and for SERC’s market participants’ policies.
• To develop a green financing policy brief, outlining alternative options toward implementing better green financing policies in Cambodia.
• To present green financing policy recommendations, to facilitate FFC to engage a wide range of stakeholders for the development and enforcement of ESG, Fair Finance Guide, and UN principles of HR and business criteria
Results of the Study
• Six groups contribute to sustainable or green financing: (i)-Banks, (ii)-Corporations, (iii)-Institutional Investors, (iv)-Central Banks, (v)-International Financial Institutions, and (vi)-Green Funds
• The green financing is to increase level of financial flows (from banking, micro-credit, insurance and investment) from the public, private and not-for-profit sectors to sustainable development priorities.
• The main areas for the current work on green financing are: (i)-Supporting public sector on creating enabling environment, (ii)-Promoting public-private partnerships on financing mechanisms such as green bonds, and (iii)-Capacity building of community enterprises on micro-credit.