The National Bank of Cambodia (NBC) has received accolades from a senior United Nations (UN) official for its unwavering commitment to implementing environmental, social, and governance (ESG) norms. During her official visit to Cambodia, Armida Salsiah Alisjahbana, the Under-Secretary-General of the United Nations and Executive Secretary of the Economic and Social Commission for Asia and the Pacific (ESCAP), commended the NBC’s efforts in promoting sustainability and addressing pressing global challenges.
The discussions between Dr. Chea Serey, the NBC Governor, and Armida Salsiah Alisjahbana revolved around Cambodia’s rapidly growing banking system and the successful digitalization of its payment systems. The NBC has played a pivotal role in enhancing financial literacy, particularly among women entrepreneurs. Sustainable finance has remained a top priority for the apex bank, with a strong focus on climate change, environmental conservation, and social issues.
Dr. Chea Serey shared insights with Armida Salsiah on how digitalization and advances in payment systems have contributed to Cambodia’s overall economic development and bolstered tourism while promoting the use of the national currency.
Furthermore, the establishment of the Cambodia Museum of Economy and Money received praise from the UN official. This unique museum provides valuable insights into Cambodia’s history, emphasizing the intricate relationship between money, economics, and politics throughout its evolution.
Armida Salsiah Alisjahbana expressed her commitment to fostering greater collaboration between ESCAP and the NBC to promote sustainable finance initiatives across Cambodia. This aligns with the Cambodian government’s efforts to achieve the Sustainable Development Goals.
Hassan Hajam, Executive Director and Chief Impact Officer at PLATFORM-Impact, highlighted the importance of commercial banks in supporting local firms and SMEs that strictly adhere to ESG norms. Many such companies face challenges in securing financial support due to collateral requirements and high-interest rates. Hajam emphasized the need for commercial banks in Cambodia to integrate ESG principles into their financing processes, particularly for businesses striving to make a positive impact in underserved communities and complex environments.
In a significant development, the NBC and ESCAP signed a memorandum of understanding (MoU) last month to advance Cambodia’s sustainable finance roadmap. This initiative signifies a substantial commitment to address climate change risks and promote green and sustainable finance. It positions Cambodia to actively contribute to its climate commitments and Sustainable Development Goals.
ESCAP has been closely collaborating with the NBC since 2019, engaging in capacity-building programs and providing technical assistance to bolster the expansion of sustainable finance in Cambodia. The MoU reflects the adoption of the first recommendation from the jointly developed policy analysis titled ‘Green and Sustainable Financial Market Analysis: Financing Cambodia’s Future.’ This analysis underscores the importance of creating a roadmap for sustainable finance.
The Sustainable Finance Roadmap aims to align Cambodia’s financial system with broader sustainable development objectives, including climate action, environmental sustainability, and socioeconomic well-being. By adopting this roadmap, Cambodia aims to establish a resilient and stable financial system that supports long-term economic and environmental sustainability. The collaboration between the NBC and ESCAP heralds a promising future for sustainable finance in Cambodia.
Source: Khmer Times
