Cambodia has launched a $20-million financing facility to help SMEs invest in energy-efficient technologies.
The initiative is likely to reduce operating costs of businesses, strengthen energy security and accelerate the country’s transition to a greener economy, the government and development partners say.
The financing forms part of Cambodia’s ADB-backed Energy Transition Sector Development Programme.
The initiative is expected to reduce operating costs of businesses, strengthen energy security and accelerate the country’s transition to a greener economy, the government and development partners say.
“By bringing together public and private stakeholders, this initiative is aimed at mobilising greater private sector investment in energy efficiency, expanding access to finance for businesses and paving the way for a more competitive, low-carbon and resilient economy,” ADB Cambodia country director Yasmin Siddiqi was quoted as saying by domestic media outlets.
She noted that the ongoing conflict in the Middle East had underscored the vulnerability of global energy markets, making investments that reduce dependence on imported fuels increasingly important for countries like Cambodia.
The revolving fund starts with an initial capitalisation of $20 million, comprising $12 million provided by the United Kingdom through the ASEAN Catalytic Green Finance Facility (ACGF) and $8 million from the Green Climate Fund through the ACGF Green Recovery Programme.
The financing forms part of Cambodia’s broader Energy Transition Sector Development Programme backed by ADB.
Through participating commercial banks, eligible SMEs can obtain concessional financing to replace outdated machinery and equipment with energy-efficient technologies, reducing electricity bills, improving productivity and lowering reliance on imported energy. The first participating commercial banks are CIMB Bank PLC and FTB.
Fibre2Fashion News Desk (DS)
