, Cambodia
Photo from ADB

ADB fuels Cambodia’s energy transition with $82.5m reform programme

The programme combines policy reforms and investments in new technologies.

The Asian Development Bank (ADB) has approved the second phase of Cambodia’s Energy Transition Sector Development Program for $82.5m.

Cofinanced by the ASEAN Infrastructure Fund, the Asia–Pacific Climate Finance Fund, the Green Climate Fund, and the United Kingdom through the ASEAN Catalytic Green Finance Facility, the programme aims to provide comprehensive support for the country’s clean energy transition by combining policy reforms with investment projects in new technologies.

Under the first subprogram approved in 2022, policy measures were introduced to guide the energy sector toward a more efficient and renewable development pathway.

“Building on this foundation, subprogram 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment,” ADB said.

“Subprogram 2 will also establish an Energy Efficiency Revolving Fund aimed at facilitating access to finance for local small and medium-sized enterprises (SMEs) to invest in energy-efficient technologies,” it added.

The revolving fund will be set up through a financial intermediation structure to enable local banks to extend loans to SMEs for energy efficiency investments.

ADB said the third phase will be rolled out in 2027. Under this, it aims to further deepen reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industry to further attract private sector investment.

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