Phnom Penh, September 4, 2024 — Climate finance is crucial for Cambodia's efforts to tackle climate change and build a net-zero economy. However, securing access to this funding remains a significant challenge for the country.

Australia is playing a key role in supporting Cambodia's Agricultural and Rural Development Bank (ARDB) through its partner, Mekong Strategic Capital (MSC), in the development of the Cambodia Climate Finance Facility (CCFF). This pioneering initiative aims to channel climate finance directly to Cambodia’s private sector, addressing the funding gap for climate-related projects.

The CCFF will be established within the ARDB and co-managed by MSC. It will be financed by the Green Climate Fund (GCF), the Cambodian government, and other co-financiers, with an initial capital commitment of USD 100 million.

Supported by Australia's CAPRED program, the CCFF is expected to become operational by mid-2025. The facility will provide long-term financing for projects focused on climate change mitigation and adaptation, helping to strengthen Cambodia's climate resilience.

Building climate resilience is a key component of Australia's partnership with Cambodia, as both nations work towards resilient, inclusive, and sustainable economic development.