Cambodia Investment Review
The Cambodia Microfinance Association (CMA) and the Agricultural and Rural Development Bank (ARDB) have signed a Memorandum of Understanding (MoU) aimed at accelerating the development of green finance and climate-related lending across Cambodia’s financial sector, as the country continues to strengthen its transition toward a more sustainable and climate-resilient economy.
The agreement establishes a framework for cooperation between the two institutions to expand access to sustainable financing for banks, microfinance institutions, agricultural businesses, cooperatives, and micro, small and medium-sized enterprises (MSMEs), while supporting Cambodia’s broader environmental and climate objectives.
The MoU was signed by CMA Chairman Sok Voeun and ARDB Deputy Chief Executive Officer H.E. Chan Seyha, representing ARDB Chief Executive Officer H.E. Dr. Kao Thach, during a ceremony attended by representatives from the National Bank of Cambodia, government ministries, development partners, and financial sector stakeholders.
Expanding Cambodia’s Green Finance Ecosystem
The partnership comes as Cambodia faces increasing pressure to strengthen climate resilience while mobilizing financing for sustainable economic growth.
Under the agreement, CMA and ARDB will jointly develop green financial products and services, explore preferential green credit facilities for CMA member institutions, and expand financing opportunities for climate-smart agriculture, renewable energy projects, and environmentally sustainable businesses.
The collaboration also includes joint capacity-building initiatives designed to improve environmental, social and governance (ESG) standards, strengthen climate risk management capabilities, and increase awareness of green finance across Cambodia’s financial industry.
Beyond financing, both institutions will exchange technical knowledge and operational experience while working together to support Cambodia’s national green development agenda.
Supporting MSMEs and Agriculture
A major focus of the partnership will be improving access to green financing for MSMEs, agricultural cooperatives, agro-industries, and smallholder farmers.
CMA will coordinate participation among its member financial institutions, facilitate sector-wide data collection and reporting, organize training programmes, and promote awareness of green finance standards and available financing mechanisms.
ARDB, meanwhile, will provide access to green financing facilities and technical guidance for eligible projects while supporting risk-sharing mechanisms and helping channel financing toward climate-resilient agricultural investment.
Sok Voeun said the partnership represents an important step in strengthening the financial sector’s ability to integrate ESG principles and climate risk management while directing greater investment toward environmentally sustainable projects that support Cambodia’s long-term economic growth.
Chan Seyha said Cambodia’s agricultural sector requires stronger and more sustainable financing mechanisms to adapt to climate change, adding that the partnership aims to help bridge financing gaps while supporting farmers and rural enterprises in adopting more environmentally sustainable practices.
Aligning Finance With National Climate Goals
The agreement reflects growing momentum within Cambodia’s financial sector to integrate sustainability into lending and investment decisions, alongside broader government efforts to promote green growth and climate resilience.
As international investors and development partners increasingly prioritize sustainable finance, initiatives such as the CMA-ARDB partnership are expected to play an important role in expanding access to climate-related financing while helping financial institutions build the technical capacity needed to support Cambodia’s green transition.
