Research Report on Green Financing Policy Implementation in Cambodia

The study advocates six vital recommendations to facilitate the effective implementation of green financing policies. Firstly, the National Bank of Cambodia (NBC) is proposed to organize awareness and capacity-building programs, targeting professionals, implementors, and investors, to enhance their understanding of green financing definitions and criteria. Secondly, financial institutions are urged to redefine their societal role by formulating explicit and ambitious environmental, social, and governance policies that align with international standards. Thirdly, regulatory bodies are advised to motivate banks to adhere to Cambodia Sustainable Financing Principles (CSFP) through incentives like tax exemptions or improved access to finance. Fourthly, the NBC should conduct evidence-based research, incorporating the ASEAN taxonomy, to guide the development of regulations for green and sustainable financing in Cambodia. Moreover, capacity-building initiatives for policymakers and implementers, fostering collaboration with other central banks, are recommended to enhance proficiency in green financing concepts. Lastly, the study suggests establishing a comprehensive framework for green financing in Cambodia, outlining key stakeholders and identifying leading and coordinating agencies for effective management within the green financing master plan. These recommendations collectively aim to foster sustainable and responsible financial practices in Cambodia.