ADB and Partners Launch Revolving Fund to Cut Energy Costs and Emissions
The Asian Development Bank (ADB), together with the Cambodian government, through the Ministry of Mines and Energy (MME) and the SME Bank of Cambodia, and in collaboration with the Credit Guarantee Corporation of Cambodia (CGCC), CIMB Bank PLC (CIMB Bank), and the Foreign Trade Bank of Cambodia (FTB), officially launched the Energy Efficiency Revolving Fund (EERF) on July 1, 2026, to support scaling-up investments in energy-efficient technologies in the Kingdom.
“The Energy Efficiency Revolving Fund is an innovative mechanism that complements ongoing reforms supported by ADB to accelerate the clean energy transition and promote inclusive and sustainable finance” said Yasmin Siddiqi, ADB Country Director for Cambodia. “This is a timely initiative given the impacts of the Middle East conflict on energy security. By bringing together public and private stakeholders, this initiative is aimed at mobilising greater private sector investment in energy efficiency, expand access to finance for businesses, and pave the way for a more competitive, low-carbon, and resilient economy.”
The EERF is a financing mechanism established under Cambodia’s Energy Transition Sector Development Programme, and was designed to unlock investments in energy-efficient technologies by local small and medium-sized enterprises (SMEs), which represent more than 90 per cent of companies operating in the country. By providing access to financing at more favourable conditions with a tailored product, the EERF will enable SMEs to invest in modern, energy-saving equipment and practices, thereby improving their competitiveness through the reduction of energy costs and the reliance on imported fuels.
With an initial capitalisation of USD 20 million – anchored by ADB support, which includes USD 12 million provided by the United Kingdom through the ASEAN Catalytic Green Finance Facility (ACGF) and USD 8 million by the Green Climate Fund through the ACGF Green Recovery Programme – the EERF will support Cambodia meeting the National Energy Efficiency Policy target of reducing energy use by 19 per cent compared to business-as-usual levels by 2030.
H.E. Dr. Ty Norin, Permanent Secretary of State at the Ministry of Mines and Energy, remarked:
Energy efficiency is the 'first fuel' of Cambodia's energy transition, offering one of the most cost-effective ways to reduce energy costs, strengthen energy security, and lower emissions. The Energy Efficiency Revolving Fund will help translate the National Energy Efficiency Policy into action by accelerating investment in energy-efficient technologies and supporting Cambodia's target of reducing energy consumption by 19 per cent by 2030.
The fund will be implemented by the SME Bank of Cambodia, with the Credit Guarantee Corporation of Cambodia (CGCC) providing partial credit guarantees made available through grant support from the Asia-Pacific Climate Finance Fund (ACliFF). The guarantees will be made available to participating financial institutions as an optional product and are aimed at reducing lending risks and inventivising non-collaterialised lending, which is still a major challenge in access to finance by most SMEs in Cambodia. The EERF will also specifically target women-owned and women-led enterprises, which often face greater barriers in borrowing from banks.
“This project builds on the success of the SME Co-Financing Scheme, launched by SME Bank in 2020 in response to the Covid-19 pandemic," explained H.E. Dr. Phan Phalla, Chairman of SME Bank of Cambodia. “The scheme played a critical role in enabling SMEs, both registered and unregistered, to access financing at favorable conditions and affordable terms.”
He added:
For the EERF, we look forward to working closely with participating financial institutions to ensure the swift deployment of funds, and thus accelerating the adoption of energy-efficient technologies among SMEs. We are proud to support investments that improve energy efficiency and drive long-term growth.
CIMB Bank and FTB Bank Cambodia are the first participating financial institutions to the EERF, whose resources will be tapped to extend the green lending portfolios of these banks.
“At CIMB Bank, our core purpose is ‘Advancing Customers and Society’, and we view energy efficiency as a direct driver of business growth for our clients,” said Heng Vuthy, Acting Chief Executive Officer of CIMB Bank. “Through the EERF, we are equipping SMEs with the tailored capital they need to upgrade their operations, drastically cut overhead costs, and sharpen their competitive edge. This isn't just about reducing our environmental footprint; it's about empowering Cambodian businesses to scale profitably and build long-term commercial success.”
“FTB is pleased to be part of this important initiative to expand access to green financing for Cambodian enterprises,” added Dith Sochal, Chief Executive Officer of FTB Bank. “By sharing risks and strengthening lender confidence, the EERF creates opportunities to scale up investment in energy efficiency, helping enterprises become more competitive and sustainable.”
This press release was supplied.
