The Asian Development Bank’s recent announcement of $40 million in funding for Cambodia marks the first funds from the Green Climate Fund that were earmarked for the Kingdom, according to ADB officials.
The money – a $30 million grant and a $10 million concessional loan – will go towards the “climate-friendly agribusiness value chains sector project”, according to Srinivasan Ancha, principal climate change specialist at the organisation.
“The amount will be used to enhance climate resilience of agricultural value chains in selected provinces of Cambodia,” Srinivasan said, adding that the government of Cambodia would be the recipient of the money.
The six-year project will involve the Agriculture Ministry, Water Resources and Meteorology Ministry and Rural Development Ministry, according to Srinivasan, who said the project aims to boost the competitiveness of Cambodia’s agricultural sector by increasing productivity and boosting efficiency.
Cambodia is regularly ranked as among the most susceptible countries to climate change, with the Kingdom’s economy and population both sensitive to climate-related disasters and shocks that are expected in the future due to global climate change.
The ADB and the Green Climate Fund, both international funding organisations, signed an agreement in August last year allowing the bank to use the fund’s resources in order to reduce greenhouse gas emissions and mitigate expected risks resulting from climate change in developing nations.