Energy Transition Sector Development Program in Cambodia

Cambodia’s fast-growing economy has driven a sharp rise in electricity demand, while continued reliance on coal and costly imports underscores the need for cleaner, more secure energy systems. Yet wider adoption of energy efficiency—especially among small and medium-sized enterprises (SMEs)—remains constrained by limited regulation, low awareness, and barriers to accessing finance.

On 6 October 2025, ADB approved the $82.5 million second phase of the Energy Transition Sector Development Program, building on earlier policy reforms and investments that strengthened Cambodia’s shift toward clean energy. From the program’s inception, the ASEAN Catalytic Green Finance Facility (ACGF) has provided concessional financing and technical assistance—mobilizing $22 million from ASEAN Infrastructure Fund (AIF) and Green Climate Fund (GCF) for subprogram 1, and contributing $30 million from AIF, GCF, and the United Kingdom for subprogram 2.

Subprogram 2 deepens support for energy efficiency and introduces Cambodia’s first energy efficiency revolving fund to expand access to low-interest loans for SMEs, backed by ACGF partners. The overall program is expected to increase renewable electricity generation by 30%, reduce annual electricity demand by 9% by 2029, and deliver 280,000 tCO₂e in annual emissions savings over 15 years.

This brochure highlights how concessional finance, targeted policy support, and early-stage technical assistance helped embed innovative investment components into an ADB-supported program that is catalyzing private sector participation and accelerating Cambodia’s clean energy transition. It is part of Catalytic Finance Stories, a series showcasing how AIF, ACGF, and partners are unlocking climate-smart, high-impact investments across Southeast Asia.