- The Asian Development Bank (ADB) approved the second phase of Cambodia’s Energy Transition Sector Development Programme, worth $82.5 million.
- The initiative aims to strengthen regulatory reforms, boost private investment, and establish a revolving fund to support SMEs adopting energy-efficient technologies.
The Asian Development Bank (ADB) has approved $82.5 million for the second phase of Cambodia’s Energy Transition Sector Development Programme, a major initiative to advance the country’s shift toward clean and efficient energy.
Cofinanced by the ASEAN Infrastructure Fund, the Asia–Pacific Climate Finance Fund, the Green Climate Fund, and the United Kingdom through the ASEAN Catalytic Green Finance Facility, the programme will combine policy reforms and investment projects to accelerate Cambodia’s energy transition.
Meanwhile, the ADB said the new phase builds on reforms introduced under the first subprogram in 2022, which helped steer the energy sector toward more renewable and efficient development. “Building on this foundation, Subprogram 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment,” the bank said.
The plan also includes the creation of an Energy Efficiency Revolving Fund, designed to improve access to finance for local small and medium-sized enterprises (SMEs) investing in energy-saving technologies. The fund will operate through local financial intermediaries, allowing banks to issue loans for efficiency-related projects.
The ADB added that a third phase, expected in 2027, will expand regulatory reforms further by introducing technical standards for renewable energy, buildings, and industrial sectors to deepen private sector participation and strengthen Cambodia’s low-carbon transition.