Logo of Phnom Penh Post newspaper Phnom Penh Post - MoUs signed promoting environmental banking

MoUs signed promoting environmental banking

Content image - Phnom Penh Post
The National Bank of Cambodia. Post Pix

MoUs signed promoting environmental banking

Bank financing focusing on environmental protection, natural resource management and climate change in Cambodia may be strengthened following the signing of two memorandums of understanding (MoUs) by several relevant institutions on Wednesday.

The MoUs on “Cooperation of Sustainable Finance” were signed by the Association of Banks in Cambodia (ABC).

One was signed by the ABC, the Ministry of Environment and the National Bank of Cambodia. The other was signed by the ABC and USAID Cambodia.

The goal of the MoUs are to strengthen and develop sustainable financial cooperation in the banking sector and support environmental protection, natural resource management and climate change in the Kingdom.

Sustainable preservation

In Channy, president of the ABC, which comprises more than 60 members, said the signing is testament to the involvement of the Kingdom’s banking sector in sustainable environmental preservation.

“Banks caring about lending to customers who take care of the environment is a key part of sustainable financing,” said Channy.

For an investment to work well, a bank’s lending should take into account key factors, including people, profit and the planet, he said.

He continued that sustainable financing may provide banks with access to low-interest loans from large banks abroad for their business operations.

Before the signing, there was no standard set of common principles concerning the environment and natural resources regarding domestic bank lending to investment projects, Channy said.

Foreign Trade Bank of Cambodia deputy general manager Lay Rachana said lending is currently made only in compliance with each banks’ respective policies.

She expressed her hopes that following the signing, bank financing will follow one common set of principles.

She added that through the MoU, the ABC will receive both technical and financial cooperation for training on and promoting sustainable financing.

The Ministry of Environment will provide the ABC with relevant information – including environmental law and climate change – which the association’s members will assess before providing loans to customers.

“Without the MoUs, it would have been difficult for institutions to officially support the association,” she said.

Ministry of Environment secretary of state Sao Sopheap said working with the ABC is an example of cooperation between the government and the private sector to implement the state’s rectangular strategy related to environmental protection.

Sang Lee, director of Food Security & Environment Office at USAID Cambodia, which has supported the ABC on its Sustainable Finance Initiative since 2015, said his organisation will continue to play an important role to further its mission of building a green economy in Cambodia.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol

  • Ministry to 'seek justice' for officials indicted in US for 'monkey smuggling'

    The Cambodian government and the Ministry of Agriculture, Forestry and Fisheries said they will make the “utmost effort” to seek justice for a Cambodian official arrested in John F Kennedy International Airport in New York for allegedly conspiring to smuggle crab-eating macaque monkeys (Macaca fascicularis)

  • Takeo hand-woven silk items provide local high-quality alternative to imports

    After graduating from university and beginning her career as a civil servant at the the Ministry of Economy and Finance, Khieu Sina found time to establish a business that aligns with her true passion – quality hand-woven Khmer goods. Her product line, known as Banteay Srei,