MANILA: The Asian Development Bank (ADB) has approved the second phase of Cambodia’s Energy Transition Sector Development Program (ETSDP), valued at $82.5 million, to accelerate the nation’s shift toward clean and sustainable energy. The initiative is 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 program combines policy reforms and targeted investments to help Cambodia transition to cleaner energy technologies and enhance energy efficiency across sectors.
Building on Early Reforms
The first subprogram, launched in 2022, introduced critical policies steering Cambodia’s energy sector toward renewable and efficient practices. Subprogram 2 now aims to deepen these reforms by strengthening energy efficiency regulations, clarifying policies to attract private sector investment, and establishing Minimum Energy Performance Standards (MEPS) — beginning with air conditioners, which represent a major share of residential energy use.
Boosting SME Access to Green Finance
A major component of the new phase is the creation of an Energy Efficiency Revolving Fund, designed to enable local small and medium-sized enterprises (SMEs) to access financing for energy-efficient technologies. Through collaboration with local banks, the fund will channel affordable loans to SMEs, thereby stimulating nationwide adoption of clean energy practices and supporting Cambodia’s green growth agenda.
Strengthening Cambodia’s Sustainable Energy Vision
“ADB is honored to support Cambodia in its ambitious and transformative journey in the energy sector,” said Anthony Gill, ADB Acting Country Director for Cambodia. “Through a comprehensive reform package, combining policy support with strategic investments, this program will help realize the government’s vision of achieving 70% renewable energy in the power mix by 2030, while ensuring growth remains both sustainable and affordable.”
Looking Ahead
A third phase, planned for 2027, will further expand the country’s energy efficiency framework, introducing technical standards for renewable energy, buildings, and industrial applications to deepen private sector participation.
Founded in 1966 and owned by 69 members, the Asian Development Bank remains a leading multilateral institution fostering inclusive, resilient, and sustainable growth across Asia and the Pacific, leveraging partnerships and innovative financing tools to promote a low-carbon future.
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