The Asian Development Bank (ADB) has approved the second phase of Cambodia’s Energy Transition Sector Development Program (ETSDP), allocating $82.5 million to accelerate the country’s shift toward clean energy. The program 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. It aims to combine policy reforms with targeted investments in new technologies to advance Cambodia’s sustainable energy agenda.
The first phase of the ETSDP, approved in 2022, introduced critical policy measures that steered Cambodia’s energy sector toward greater efficiency and renewable energy adoption. Building on that progress, the second phase focuses on regulatory reforms designed to strengthen the national framework for energy efficiency and provide clearer policies to encourage private sector participation. One of the major milestones of this phase is the introduction of Minimum Energy Performance Standards for electrical appliances, beginning with air conditioners, which represent the largest share of household energy consumption.
A key feature of subprogram 2 is the establishment of an Energy Efficiency Revolving Fund to support local small and medium-sized enterprises (SMEs) in adopting energy-efficient technologies. This fund will operate through local financial institutions, enabling banks to provide loans to SMEs for energy efficiency projects. By leveraging domestic financing mechanisms, the fund seeks to stimulate private sector engagement and accelerate the expansion of energy efficiency initiatives across the country.
According to ADB Acting Country Director for Cambodia Anthony Gill, the program represents a transformative step toward realizing the government’s vision of achieving 70% renewable energy in the national power mix by 2030. He emphasized that combining policy reform with strategic investment will ensure that Cambodia’s economic growth remains both sustainable and affordable, while supporting the country’s broader energy transition goals.
The program’s third phase, scheduled for 2027, will continue to advance these reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industries. This progression is expected to further enhance Cambodia’s investment climate and strengthen private sector participation in the clean energy transition.
The ADB, established in 1966 and owned by 69 member countries, continues to play a leading role in promoting inclusive, resilient, and sustainable growth across Asia and the Pacific. Through innovative financing tools and partnerships, ADB works to build quality infrastructure, support climate resilience, and drive regional prosperity.
