This policy paper is a derivation of the research report into cross-border agricultural investments in Cambodia.
The paper aims to provide content for a discussion on future reform regarding the Cambodian financial sector, specifically the promotion of sustainable finance. Through our desk research, we emphasized the increasing relevance of sustainable finance as an innovative concept of international development, including in Cambodia.
The recommendations, some of which advocate for tighter legal requirements and the creation of training sessions for financial practitioners, are articulated over three areas: the enhancement of human capital through capacity-building initiatives, regulatory reform, and pro-transparency requirements. The content of the recommendations followed the nature of the findings from the research report, which identified three critical gaps in promoting sustainability in the Cambodian financial sector.
These gaps included a lack of awareness among practitioners in the financial sector regarding the concept and implications of sustainable finance, relatively weak enforcement of the regulatory framework, and a lack of standard requirements for financial institutions (FIs) regarding their disclosure of information on sustainable initiatives.
Adopting the recommendations may help bridge the gaps in these three areas. We predict that the Cambodian financial sector will reap several benefits, including increased trust among stakeholders and greater capacity among FIs to switch their operations to more sustainable practices.
Disclaimer: The content of this publication is the sole responsibility of Fair Finance Cambodia and can in no way be taken to reflect the views of the Fair Finance Asia/ Fair Finance International network.
About Fair Finance Cambodia
The Fair Finance Cambodia (FFC) coalition aims to reduce the negative impacts of cross-border investments on human rights, the environment and climate change, particularly those made by multinational financial institutions, banks and insurers while increasing inclusive economic development. FFC is operational in Cambodia – wherein the Fair Finance Cambodia Civil Society Organization (CSO) coalition leads research and engagement with key stakeholders, including financial regulatory and policymaking institutions, banking and investment associations, multilateral development banks and academia. FFC is a member of Fair Finance Asia, a regional network of CSOs committed to ensuring that financial institutions’ funding decisions in the region respect local communities’ social and environmental well-being.