NBC committed to promoting sustainable financing, says Serey
- MileStone.
- Dec 11, 2023
- 3 min read
Established Time - December 11, 2023
The National Bank of Cambodia (NBC) is committed to promoting sustainable financing, which has been categorised as one of the key priorities within the first phase of the Pentagonal Strategy, its Governor Dr Chea Serey said on Friday.
The head of the apex bank made this remark while delivering the opening address at the 10th ‘Annual Macroeconomic Conference on Climate Risk and Green Energy Transition’ held at Sofitel Phokeethra. The conference was jointly organised by the NBC along with UNDP Cambodia.
A memorandum of understanding (MoU) was also signed on the sidelines of the conference between NBC and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) to promote Cambodia’s sustainable finance roadmap.
“The NBC has been collaborating with many international agencies including ESCAP to promote green financing amid Cambodia being considered as one of the most vulnerable countries to climate change impacts.”
Dr Chea Serey said the country’s green journey is not free from challenges. “Cambodia still depends on fossil fuels and a lot of investments are still needed into clean energy. Climate change can have an adverse impact on food consumption and food basket leading to food insecurity.
“This could lead to inequality and make people more vulnerable. NBC is exerting efforts along with the Association of Banks of Cambodia to build capacity in sustainable financing. The mission requires high levels of commitment and participation from all stakeholders.”
Dr Chea Serey pointed out that high-quality research is also needed to assess the situation and devise right strategies to mitigate the impact of climate change on the Cambodian economy and people.
Alissar Chaker, Resident Representative of UNDP in Cambodia, said the conference aims to foster research and policy dialogue to overcome the challenges brought by climate change and global warming.
“It’s time for us to talk about the alternative version of growth as the world is at critical crossroads. What is needed is the facilitation of the transfer of experience and technical expertise from countries, which have been successful in their efforts, to countries that are struggling with challenges.”
She highlighted a 2020 study carried out by the World Bank that Cambodia could lose up to 10 percent of its GDP by 2050 if mitigation measures are not in place to address the impact of climate change on the national economy.
“There is an urgent need to scale up the green finance and greater cooperation between the private and public sector is essential to tackle the challenges while creating new opportunities.”
Dr Philip Schellekens, Chief Economist UNDP Regional Bureau for Asia and the Pacific, highlighted the risks, opportunities and governance associated with climate change.
“Cambodia lost close to $1.5 to severe droughts and floods between 1993 and 2020. This is alarming and we must understand that the Asia-Pacific region is the most vulnerable region in terms of climate change impact and related set of challenges.”
He said the central bank can effectively play an important role in the journey towards becoming a green economy, considering the fact that it is the custodian of financial stability, vested with many regulatory powers. The economist added that green transition can also cause an upward spiral of opportunities and prosperity.
Panel discussions and preconducted by subject experts focused on measures to boost sustainable financing as well as promoting green innovations in the country and across the region.
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