Phnom penh: The Cambodia Microfinance Association (CMA) and the Agricultural and Rural Development Bank (ARDB) have signed a Memorandum of Understanding (MoU) to establish a cooperation framework for promoting sustainable green finance and financial services related to climate change in the banking, microfinance, agriculture, and micro, small, and medium enterprises (MSMEs) sectors in Cambodia.

According to Agence Kampuchea Presse, this strategic partnership is an initiative designed to respond to Cambodia's vulnerability to climate change and environmental degradation, and aligns with the Royal Government of Cambodia's commitment to sustainable, inclusive, and climate-resilient socio-economic development.

The MoU was signed on June 26 by Mr. Sok Voeun, Chairman of the CMA Board of Directors, and Mr. Chan Seyha, ARDB Deputy Director General, during a ceremony attended by CMA Board members, leaders of the ARDB, representatives of the National Bank of Cambodia, relevant ministries, development partners, and other distinguished guests.

Under the MoU, CMA and ARDB will collaborate on several key initiatives to support Cambodia's transition towards green economic development and strengthen climate resilience. CMA will facilitate the participation of its member financial institutions, coordinate data collection and reporting at the sector level, and organise capacity-building activities to enhance stakeholders' understanding of green finance.

The Association will also support the dissemination of green financing guidelines and standards, and facilitate the dissemination of ARDB's relevant financing mechanisms to qualified stakeholders, including the Techo Farmers Network Association. CMA Board Chairman Mr. Sok Voeun emphasized that this MoU marks a significant turning point for Cambodia's financial sector, focusing efforts on national climate priorities and strengthening the capacity of member financial institutions in ESG and climate risk management.

For his part, ARDB Deputy Director General Mr. Chan Seyha highlighted the need for robust and sustainable financing mechanisms in Cambodia's agriculture and agro-industry to build climate resilience. He affirmed ARDB's commitment to supporting effective green financing, aiming to mobilize green credit, bridge financing gaps, and assist farmers and rural enterprises in adopting environmentally sustainable practices.