Phnom Penh, October 7, 2025 (AKP) — The Asian Development Bank (ADB) has approved the second phase of Cambodia’s Energy Transition Sector Development Program (ETSDP), amounting to US $82.5 million.
This funding comes with co-financing from the ASEAN Infrastructure Fund, the Asia-Pacific Climate Finance Fund, the Green Climate Fund, and the United Kingdom through the ASEAN Catalytic Green Finance Facility.
According to ADB’s press release issued on the morning of October 7, 2025, the program aims to provide comprehensive support for Cambodia’s clean energy transition by combining policy reforms with new technology investment projects.
The first phase of the program, approved in 2022, introduced key policy measures that guided the energy sector toward the effective development of renewable energy. Building on this foundation, the second phase will accelerate regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment.
One of the major achievements under this phase will be the establishment of Cambodia’s first regulatory framework for Minimum Energy Performance Standards (MEPS) for electrical appliances, starting with air conditioners, which are the largest energy consumers in the residential sector.
The second phase will also establish an Energy Efficiency Revolving Fund to improve access to financing for local small and medium-sized enterprises (SMEs) to invest in energy-saving technologies. This fund will be created through an intermediary financial structure, enabling local banks to scale up lending to SMEs for energy efficiency investments.
By engaging local financial institutions and supporting SMEs, the revolving fund is expected to accelerate energy efficiency investments nationwide.
Mr. Anthony Gill, ADB Country Director for Cambodia, stated that ADB is honored to support Cambodia on its ambitious and transformative energy journey. He added that through the comprehensive reform financing package—combining policy support with strategic investments—the ETSDP will help turn the government’s energy transition vision into reality.
He emphasized, “This work also aligns with Cambodia’s target of achieving 70% renewable energy in the energy mix by 2030, coupled with a strong commitment to promoting affordable energy efficiency—a crucial factor to ensure Cambodia’s growth remains sustainable.”
The second phase of the program will be followed by a third phase in 2027, which will deepen the reforms further by expanding the regulatory framework for energy efficiency and creating technical standards for renewable energy in buildings and industries, thereby attracting additional private sector investments.
