Cambodia is embracing green business practices as it shifts to a more sustainable and inclusive economy, according to deputy prime minister Sok Chenda Sophea.

“Green business practices are a crucial element of the environmental, social and governance [ESG] principles to which we are committed,” he says. “ESG investment benefits our long-term competitiveness and economic resilience.

“Moreover, it is no longer an exclusive domain for large companies. We are encouraged by the recent launch of ESG guidelines for SME [small and medium-sized enterprises] supply-chain operators in Asean [Association of Southeast Asian Nations].” 

Asia Zero Emission Community

Cambodia – according to Chenda, who was speaking at a World Green and Sustainability Summit in Phnom Penh on October 30 – is also committed to the goals of the Asia Zero Emission Community ( Azec ) comprising Asean economies, Japan and Australia.

Prime Minister Hun Manet of Cambodiia and other leaders, at an Azec summit in Kuala Lumpur on October 26, recognized the urgent need to cut greenhouse gas emissions.

In a joint statement, the Azec leaders also reiterated their commitment to the concept of “one goal, various pathways” towards carbon neutrality and net-zero emissions. This takes into account each country’s unique circumstances, existing targets or policies and developmental challenges.

“It is in this spirit that I convey a clear message from our prime minister: Cambodia is not just open for business,” the deputy prime minister told the meeting in Phnom Penh. "We are open, ready and eager to attract green business.”

The country, according to Chenda, plans to be generating 70% of its electricity from renewables by 2030 and is working hard to bring sustainable practices to agriculture.

“Investment in climate-smart farming and value-added processing offers attractive returns,” he says. “This promises to bring the finest Cambodian products to international markets.”

Cambodia’s current five-year Circular Strategy for the Environment, the deputy prime minister also notes, stresses the need for investment in multiple sectors.

Green bonds

“These range from infrastructure and energy to transport and waste management,” Chenda states. “It’s worth noting here that part of the proceeds of Cambodia’s first green bond issue last year were for a wastewater treatment plant.

“Under the third phase of our Sustainable Bond Accelerator Programme launched in August, we are encouraging more financing in projects aligned with our climate priorities. The programme — part of an international initiative – taps into a rapidly growing bond market that has doubled in size since 2023.”

Green bonds, Chenda adds, issued in Cambodia align with the standards of the Asean Capital Markets Forum and principles of the International Capital Market Association.

Moreover, activities financed by Cambodian green bonds, according to an independent assessment by S&P Global, “strongly align with the long-term vision of a low-carbon and climate-resilient future”.