Phnom Penh, November 4, 2025 — Cambodia has received $9.8 million in new climate financing from the Green Climate Fund (GCF) to strengthen resilience across 25 of its most climate-vulnerable districts, marking a milestone in the country’s drive toward locally-led climate adaptation.
The approval came during the 43rd GCF Board Meeting held on October 30 in Songdo, South Korea, endorsing the third phase of the Local Governments and Climate Change (LGCC-3) initiative. The project is implemented by the National Committee for Sub-National Democratic Development (NCDD) and represents the first time Cambodia has directly accessed GCF funding through its own accredited national entity.
Strengthening Local Leadership in Climate Action
The LGCC-3 project shifts climate adaptation resources directly to district-level authorities, empowering local governments to identify, plan, and execute resilience-building initiatives.
“This funding from the Green Climate Fund under LGCC-3 is vital to unlock the necessary financing for capacity building, technical assistance, and local adaptation investments,” said Chheng Vatanak, Deputy Head of NCDD and Project Director.
He noted that while Cambodia is on track to graduate from its status as a Least Developed Country (LDC), many provinces continue to face deep climate vulnerability, with rural communities suffering the most from floods, droughts, and changing weather patterns.
Project Scope and Implementation
Over the next three years, LGCC-3 will be implemented in 15 districts across Battambang, Preah Vihear, and Pursat during the initial phase, expanding to 10 additional districts in the final year.
These areas were identified through feasibility studies as high-risk zones where repeated flooding and prolonged droughts have severely impacted agriculture, water systems, food security, and infrastructure.
The project will scale up the Performance-Based Climate Resilience Grant (PBCRG) Facility, a financing mechanism piloted in previous LGCC phases, enabling local governments to access direct climate grants tied to verified performance and results.
Building Capacity and Climate Governance
Many district administrations still lack the technical capacity to assess climate risks or integrate adaptation measures into development planning. LGCC-3 addresses these gaps through training programs, data systems, and participatory decision-making frameworks that include women, youth, and vulnerable groups.
“The Local Climate Action project in Cambodia will help local governments plan and deliver adaptation investments across sectors including agriculture, water, health, and infrastructure,” said Hemant Mandal, Director of GCF’s Department of the Asia and Pacific Region.
“As the first project from a Cambodian direct accredited entity, it demonstrates our commitment to strengthening country ownership and empowering locally-led climate action,” he added.
Advancing Cambodia’s Sustainable Development Goals
Since its inception in 2011, the LGCC initiative — supported by the UN Capital Development Fund (UNCDF) — has helped dozens of Cambodian districts mainstream climate resilience into their public service delivery and development planning.
LGCC-3 builds on this success to expand national reach, enhance climate-responsive governance, and accelerate Cambodia’s progress toward key Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action), SDG 9 (Resilient Infrastructure), and SDG 1 (No Poverty).
As Cambodia approaches its LDC graduation milestone, the project positions the Kingdom as a regional model for integrating decentralised climate finance into national planning and empowering local authorities to tackle the escalating threats of climate change.
Key Facts at a Glance
| Aspect | Details |
|---|---|
| Funding Amount | USD 9.8 million |
| Funding Source | Green Climate Fund (GCF) |
| Approved At | 43rd GCF Board Meeting, Songdo, South Korea (October 30, 2025) |
| Implementing Agency | National Committee for Sub-National Democratic Development (NCDD) |
| Project Name | Local Governments and Climate Change – Phase 3 (LGCC-3) |
| Duration | 3 years |
| Focus Areas | 25 districts in Battambang, Preah Vihear, Pursat, and other provinces |
| Key Mechanism | Performance-Based Climate Resilience Grant (PBCRG) Facility |
| Partners | GCF, UNCDF, NCDD |
| Core Goals | Local climate governance, resilience building, SDG advancement |
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