Cambodia is particularly vulnerable to climate change with high exposure to climate hazards such as floods, landslide, cyclone, extreme heat and wildfire. These are exacerbated by the country’s economic dependence on climate-sensitive sectors such as agriculture and a high rural population. Without proper intervention, climate change could cost up to nine per cent of Cambodia’s gross domestic product, increasing poverty simultaneously. A multifaceted strategy is required to solve the climate challenge, including strengthening the capacity of stakeholders in the public and private sectors and using concessional funding to signal to the market the commercial viability of climate projects. 

The Cambodian Climate Financing Facility’s (CCFF) cross-cutting goals include accelerating implementation of the country’s Nationally Determined Commitment (NDC), scaling up climate finance, and lowering greenhouse gas emissions while boosting climate resilience. CCFF will finance high-impact climate projects, focused on resource-constrained NDC priority sectors, through long-term concessional lending and crowding in private sector participation. In addition to tackling the financial barriers and market gaps, the programme will also support capacity building of stakeholders to tackle non-financial barriers and convene stakeholders to coordinate policy dialogues for development of policy framework.