By Kanni Wignaraja, UN Assistant Secretary-General and UNDP \ Regional Director for Asia and the Pacific, with Enrico Gaveglia, UNDP Resident Representative in Cambodia December 3, 2025
Cambodia’s lush forests stretch from the northern plains through the mist-shrouded Cardamom Mountains to the mangrove-lined coastlines and are the guardians of one of the country’s most valuable national assets: its natural capital. These forests are not only Cambodia’s lungs but also its first line of defense against climate shocks and socio-economic downturns.
At a time when countries are racing to close the gap between climate ambition and fiscal reality, Cambodia’s commitment to conserve and expand its forest cover demonstrates how rapidly a developing country can translate climate pledges into measurable, revenue-generating results that deliver for its people and for the planet.
Turning climate commitments into tangible results
Over the past decade, Cambodia has been heavily engaged with the UN Climate Mitigation Framework, specifically focusing on the “Reducing Emissions from Deforestation and Forest Degradation” (REDD+) mechanism. Cambodia’s REDD+ journey has evolved from early pilot projects into one of Southeast Asia’s most comprehensive national forest programmes.
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Supported by the United Nations Development Programme (UNDP) and key development partners, the country has established a robust National REDD+ Strategy (2017–2026), a functional system for Measurement Reporting and Verification (MRV) of reforestation efforts, and an active network of community-led conservation initiatives across protected areas. These efforts have strengthened forest governance, enhanced law enforcement, and empowered indigenous peoples and local communities to play a formal role in protecting forests. As a result, Cambodia has built the institutional foundation, policy coherence, and technical capability necessary to translate forest protection into measurable climate outcomes and ultimately lay the groundwork for global recognition through becoming eligible for results-based payments.
Behind these results stand bold national policy choices, such as the moratorium on new Economic Land Concessions, the expansion of Protected Areas from 18 to 40 percent of national territory, and the recognition of more than 400 community forestry and fishery groups managing 410,000 hectares of land. These reforms, anchored in the National REDD+ Strategy (2017–2026) and Cambodia’s Long-Term Strategy for Carbon Neutrality by 2050, demonstrate that a development strategy can be designed with economic growth and conservation of natural assets as dual goals.
As Cambodia pursues access to the Green Climate Fund (GCF) REDD+ Results-Based Payments (RBP), the country’s efforts provide a clear illustration of how this transformation in the valuation of its natural assets is already underway.
With a forthcoming Results-Based Payment project supported by UNDP, the resources obtained will be channeled into five linked priorities: reducing emissions from deforestation; reforesting 14,000 hectares; restoring 15,000 hectares of degraded forests; strengthening 60 community-led institutions; and enhancing transparency, reporting, and MRV systems. This has been possible thanks to the policy and governance foundations already in place. The question now is, how effectively are they managed and utilized?
A New Generation of Global Forest Finance
The Tropical Forest Forever Facility (TFFF), launched at COP30 in Belém, Brazil, represents a pivotal move toward establishing a permanent results-based funding mechanism for tropical forests. Led by Brazil, in partnership with fellow tropical forest nations such as Colombia, Indonesia, Malaysia, Ghana, and the Democratic Republic of Congo, the TFFF exemplifies South–South leadership and solidarity in action. Brazil’s convening power has created a dynamic platform where developing countries are collectively shaping the next generation of forest finance- one that values standing forests, channels predictable payments to Indigenous and local stewards, and complements existing mechanisms like REDD+. For countries such as Cambodia, this emerging coalition offers new financing opportunities, as well as the opportunity to demonstrate a much-needed shared global commitment to protect the planet’s most vital ecosystems.
Unlike REDD+, which rewards verified emission reductions, the TFFF rewards the act of keeping forests standing through providing annual payments per hectare of maintained or restored forest cover. It combines two financial arms, the Tropical Forest Investment Fund and the Facility itself, to mobilize up to USD 125 billion through blended finance, creating an endowment-like flow of forest payments. At least 20 percent of these funds must reach Indigenous and Local Communities, mirroring Cambodia’s own inclusion model.
A national opportunity and a global movement
For Cambodia, this is a moment to seize. The country has developed national forest monitoring systems, a functioning national registry, and the capability of law enforcement for forest conservation and community partnerships – thus already fulfilling many of the prerequisites for meeting the TFFF’s eligibility criteria.
Joining early could make Cambodia one of the first Asian countries to leverage the TFFF’s results-based payments as a sovereign revenue stream for forest conservation. Most importantly, a source that does not, for once, rely on debt instruments to finance its development ambitions. The combined REDD+ and TFFF approaches could triple Cambodia’s current forest finance flows and anchor its vision to increase forest cover to 60 percent by 2050.
The lessons from Cambodia and the promise of the TFFF offer a broader truth for Asia and the Pacific. Forests in the region sustain livelihoods, regulate water and climate, and safeguard cultural identity. Every dollar invested in protecting forests is an investment in economic growth, public health, gender equity, and climate and ecological resilience – an investment with multiple returns.
At UNDP, we will continue to support Cambodia as a front-runner in this emerging landscape of “forest sovereign finance.” Through initiatives like the REDD+ RBP and soon the TFFF, Cambodia is redefining its forests – not as spaces and commodities to be exploited, but as national assets to be protected and renewed. This approach serves as a model worth replicating.
When the right policies, partnerships, and financing mechanisms align, the results can be measured not only in tonnes of carbon reduced or hectares of forest saved, but in the well-being and hope for the people who call these forests home.
