Three Cambodian financial institutions have been chosen to pioneer a groundbreaking climate finance initiative under the Asian Development Bank’s (ADB) inaugural Climate Bank Accelerator (CBA) Program. Announced on Monday, this move signals a pivotal shift in Cambodia’s financial sector toward sustainability, aligning with national efforts to build a greener economy amid global calls for climate action.
The selected institutions—AMK Microfinance Institution PLC, Foreign Trade Bank of Cambodia PLC, and Maybank (Cambodia) PLC—are set to spearhead the integration of climate-focused financial practices. This initiative, supported by the National Bank of Cambodia (NBC) and the Association of Banks in Cambodia (ABC), aims to position the country as a regional leader in sustainable finance.
A Strategic Push for Sustainability
The CBA Program is a core component of broader efforts to align Cambodia’s banking sector with the Sustainable Finance Roadmap and the Sustainable Finance Taxonomy, both driven by the NBC. These frameworks provide guidelines for financial institutions to prioritize environmental sustainability, channeling capital into projects that mitigate climate change and foster resilience. The ADB’s involvement underscores its commitment to supporting member countries in transitioning to low-carbon economies, a priority outlined in its Cambodia Country Partnership Strategy 2024-2028. 
Following an open call for expressions of interest, the ADB shortlisted the three institutions based on stringent criteria: their dedication to sustainability, readiness to implement climate-focused initiatives, alignment with green finance goals, and capacity for innovation. The selection process highlights the growing recognition of the financial sector’s role in addressing environmental challenges, particularly in a country like Cambodia, where climate change poses significant risks to agriculture, infrastructure, and livelihoods.
Jyotsana Varma, ADB Country Director for Cambodia, expressed optimism about the partnership. “We are excited to partner with some of Cambodia’s leading financial institutions to drive sustainable finance and support the transition to a low-carbon, climate-resilient economy” she said on Monday. Varma also acknowledged the crucial support from the NBC and ABC, emphasizing the importance of sector-wide collaboration in achieving these ambitious goals.
Building Capacity for a Green Future
The CBA Program will now enter its advisory and implementation phase, focusing on enhancing the selected banks’ capabilities in several key areas. These include developing expertise in climate finance, creating innovative financial products tailored to green projects, improving climate risk assessments, and increasing transparency through emissions disclosures. Such measures are critical for ensuring that financial institutions can effectively manage the risks associated with climate change while capitalizing on opportunities in the green economy.
For Cambodia, a nation vulnerable to rising sea levels, extreme weather, and deforestation, the stakes are high. The agricultural sector, which employs a significant portion of the population, is particularly at risk from changing climate patterns. By embedding sustainability into financial decision-making, the CBA Program aims to redirect capital toward projects that address these challenges—think renewable energy initiatives, sustainable farming practices, and climate-resilient infrastructure.
Beyond the three pilot institutions, the program’s impact is expected to ripple across the sector. Training modules, developed in collaboration with the ABC, will be rolled out to member banks between 2025 and 2026. This knowledge-sharing initiative is designed to encourage the broader adoption of sustainable finance practices, fostering a collective shift toward environmental responsibility among Cambodia’s financial players.
Voices from the Frontline
The leadership of the selected institutions has voiced strong support for the initiative, reflecting a shared vision for a sustainable future. Kea Borann, Chief Executive Officer of AMK Microfinance Institution, highlighted the alignment between the program and his organization’s mission. “AMK is honoured to be selected as a pilot institution for the Climate Bank Accelerator Program, and we are excited to partner with ADB to lead the growth of climate projects and climate finance in Cambodia” he said. Borann emphasized the program’s role in helping clients mitigate and adapt to climate change impacts, particularly in rural communities where AMK operates extensively.
Similarly, Dith Sochal, Chief Executive Officer of the Foreign Trade Bank of Cambodia, framed the partnership as a transformative step. “This strategic partnership propels our journey to become Cambodia’s leading green bank—by strengthening climate risk management, setting credible emissions targets, and scaling practical green financing solutions” Sochal noted. He underscored the potential for actionable, bankable solutions to drive resilient and low-carbon growth across the country.
Rath Sophoan, Chief Executive Officer and Country Head of Maybank Cambodia, echoed these sentiments, pointing to the centrality of green financing in their sustainability strategy. “Participating in ADB’s Climate Bank Accelerator is a strategic move that enhances our capacity, deepens our knowledge, and strengthens partnerships to realise this ambition in Cambodia” Sophoan stated. He highlighted the opportunity to channel capital into climate-positive projects, supporting the nation’s green transition while creating long-term value for communities and the environment.
Cambodia’s Climate Challenge in Context
Cambodia’s participation in the CBA Program comes at a critical juncture. The country ranks among the most vulnerable to climate change in Southeast Asia, according to various international assessments. Rising temperatures, erratic rainfall, and flooding threaten to disrupt food security and economic stability, particularly in rural areas dependent on agriculture. At the same time, rapid urbanization and industrialization have increased pressure on natural resources, exacerbating environmental degradation.
The financial sector’s role in addressing these challenges cannot be overstated. Globally, climate finance has emerged as a key mechanism for mobilizing resources to combat environmental threats. By incentivizing investments in renewable energy, energy efficiency, and sustainable infrastructure, banks can play a catalytic role in steering economies toward greener pathways. In Cambodia, where access to such funding has historically been limited, the CBA Program represents a vital opportunity to bridge this gap.
Moreover, the initiative aligns with regional and global sustainability agendas. The Association of Southeast Asian Nations (ASEAN) has increasingly prioritized green finance as part of its economic integration efforts, with member states adopting frameworks to encourage environmentally responsible investments. Cambodia’s involvement in the CBA Program positions it as a frontrunner in this space, potentially setting a precedent for other nations in the region.
ADB’s Broader Mission
The ADB, established in 1966 and comprising 69 member countries—50 from the Asia-Pacific region—has long been a driving force behind sustainable development in the region. Headquartered in Manila, the multilateral development bank focuses on fostering inclusive, resilient growth through innovative financial tools and strategic partnerships. In Cambodia, its efforts span infrastructure development, poverty reduction, and, increasingly, climate resilience.
The CBA Program is a testament to ADB’s evolving priorities in the face of global environmental challenges. By targeting the financial sector—a linchpin of economic activity—the bank seeks to create systemic change that extends beyond individual projects. This approach is particularly relevant in developing economies like Cambodia, where private sector engagement is essential for scaling up climate action.
Looking Ahead: Opportunities and Obstacles
As the CBA Program unfolds, its success will hinge on several factors. First, the ability of the selected institutions to translate training and advisory support into tangible outcomes—such as new green financial products or improved risk management practices—will be crucial. Second, the broader adoption of sustainable finance principles across Cambodia’s banking sector will depend on effective knowledge dissemination through the planned training modules.
Challenges remain, however. Limited technical expertise, regulatory hurdles, and the high upfront costs of green projects could slow progress. Additionally, ensuring that climate finance reaches small and medium-sized enterprises, as well as rural communities most affected by climate change, will require innovative approaches to inclusivity.
Nevertheless, the initiative marks a significant step forward for Cambodia’s financial landscape. By embedding sustainability into the core of banking operations, the country is laying the groundwork for a more resilient economy. As the pilot institutions begin to implement their climate-focused strategies, the eyes of the region—and indeed the world—will be on Cambodia to see how this transformation unfolds.
For now, the path ahead remains one of cautious optimism. With the support of the ADB, the NBC, and the ABC, Cambodia’s financial sector is poised to lead by example, demonstrating that economic growth and environmental stewardship can go hand in hand. Whether this momentum can be sustained over the long term is a question that only time will answer.
