Cambodia Investment Review
Cambodia has launched new guidance for issuing Green, Social and Sustainability (GSS) Bonds as regulators seek to expand sustainable investment opportunities and strengthen the country’s capital markets amid growing demand for climate and social impact financing.
The Securities and Exchange Regulator of Cambodia (SERC), in partnership with the United Nations Development Programme (UNDP) Cambodia, officially unveiled the Detailed Guidance for Issuing Green, Social and Sustainability Bonds during an investor roundtable held in Phnom Penh on May 29.
The framework builds upon Cambodia’s existing Green Bond guidance introduced in 2022 with support from the Asian Development Bank (ADB) and broadens the regulatory scope to include social bonds and sustainability bonds.
Expanding Cambodia’s Sustainable Finance Framework
Officials said the expanded guidance is designed to support the development of a high-integrity sustainable finance ecosystem, diversify funding sources for development projects and contribute to the achievement of Cambodia’s Sustainable Development Goals (CSDGs).
Speaking at the launch event, H.E. Sou Socheat, Delegate of the Royal Government in charge as Director General of SERC, said sustainable finance is becoming an increasingly important component of Cambodia’s long-term economic development strategy.
“Sustainable finance is no longer an option, but a necessity for building a resilient and future-ready economy,” he said.
Sou Socheat added that the new guidance reflects Cambodia’s commitment to strengthening sustainable capital markets while supporting investments that generate positive environmental and social outcomes for future generations.
The launch comes as Cambodia continues to explore ways of mobilising private sector investment into projects that support environmental protection, social development and economic resilience.
Diversifying Sources of Development Finance
UNDP Cambodia Resident Representative Enrico Gaveglia said the organisation worked closely with SERC to develop a practical framework that can help unlock new sources of sustainable investment.
According to Gaveglia, the guidance is intended to support efforts to diversify financing mechanisms beyond traditional grant-based development assistance while strengthening Cambodia’s domestic capital markets.
The initiative aligns with broader regional efforts to increase the use of sustainable finance instruments, including green, social and sustainability bonds, to fund projects with measurable environmental and social benefits.
Market observers note that sustainable bonds have become an increasingly important financing tool globally, helping governments, financial institutions and corporations raise capital for projects ranging from renewable energy and climate adaptation to healthcare, education and social inclusion.
Broad Industry Participation
The launch event attracted approximately 100 participants from across Cambodia’s financial and development sectors, including representatives from government institutions, financial regulators, development partners, industry associations, financial institutions, listed companies and other stakeholders.
Experts from SERC, UNDP, ADB and the Sustainable Finance Institute Asia participated in discussions on sustainable finance trends, market development and practical implementation of the new bond issuance framework.
The release of the guidance marks another step in Cambodia’s efforts to deepen its capital markets and expand the range of financing instruments available to investors and issuers, while supporting the country’s long-term sustainable development objectives.
