Envisioning climate investments for agriculture in Cambodia

Investments in sustainable crop technologies and climate-resilient livestock production in the Northwest as well as forest restoration and plantation in the East have the potential to transform Cambodia’s agriculture. 

From 2 to 4 April in Phnom Penh, FAO, in partnership with the Ministry of Environment and the Ministry of Agriculture, Forestry and Fisheries, welcomed government experts, civil society leaders, agrifood entrepreneurs and researchers to a participatory foresight workshop on the future of agriculture, generously supported by the Green Climate Fund (GCF). 

Paving the way for future-proof climate investments in agriculture in Cambodia, the participants identified provinces and agricultural sub-sectors that have the most transformative potential for more efficient, resilient and sustainable agriculture. At the same time, the delegates started collaborating on creating projects with a strong positive impact on the resilience of smallholder farmers and agri-micro, small and medium enterprises (MSMEs) to extreme weather events, including flooding and drought. 

Financing Cambodia’s agriculture ambitions for the most vulnerable 

Cambodia is highly affected by climate change, but the exposure to vulnerability varies geographically. For example, Battambang, Banteay Meanchey, Kampong Thom, Pursat and Prey Veng are the top five provinces with the highest losses and damages in the agricultural sector, according to research conducted by FAO in Cambodia. The combined differences between agroecological zones and socioeconomic conditions point to multiple vulnerabilities, necessitating even more climate finance for marginalized communities. 

His Excellency Thy Sum, Acting Director General of the General Directorate of Policy and Strategy and Tertiary GCF Focal Point of the Ministry of Environment emphasized that smallholder farmers, Indigenous Peoples and local communities are at a high risk from changes in conditions during the growing season and the potential increase in climate hazards. His Excellency said: “Effective, inclusive, and multilateral action is the key to tackling climate change. On behalf of the Nationally Designated Authority (NDA), I reaffirm our commitment to working together with all stakeholders to enhance our interventions and actions, striving towards a sustainable planet and healthy people.” 

The government has put strong policy frameworks in place to address the impact of climate change on agrifood systems, including its nationally determined contribution (NDC), Pentagonal Strategy, National Strategic Plan on Green Growth 2013-2030, Long-term Strategy for Carbon Neutrality (LTS4CN), Cambodia Climate Change Priority Action Plan (CCPAP) 2023-2030, and the Circular Strategy on Environment 2023-2028. However, mobilizing finance to implement these plans will not be easy – under the NDC alone, adaptation actions will require over USD 2 billion. 

Her Excellency Chan Phaloeun, Under Secretary of State and the Chair of the Technical Working Group on Climate Change, Agriculture, Forestry and Fisheries of the Ministry of Agriculture, Forestry and Fisheries underlined that the agriculture sector in Cambodia, particularly smallholder farmers and MSMEs, is facing a widening finance gap. Her Excellency said: “Together we can unlock funding and redirect agriculture and climate finance towards those who need it the most: local communities, Indigenous Peoples, youth, and women.” 

Partnerships today for climate investments tomorrow 

Ms Rebekah Hall, FAO Representative to Cambodia highlighted that FAO is committed to supporting Cambodia in developing tailored adaptation and mitigation actions for agriculture alongside partners. She said: “Together, we have made a first step towards a collective and inclusive prioritization of national triggers for transformation in the agriculture sector.” 

This is the first country workshop of the Agriculture Sector Readiness for enhanced climate finance and implementation of Koronivia Joint Work on Agriculture priorities in Southeast Asia project, which includes Cambodia, Lao PDR, Malaysia, Philippines, Thailand and Viet Nam. Going forward, in Cambodia, FAO together with partners will be building upon existing investment planning processes to enhance climate change planning in agriculture. FAO will also support the development of a pipeline of climate finance projects for the agriculture sector, which will be represented in the Cambodia Country Programme, leaving no smallholder farmer in Cambodia behind. 

About the project 

The Agriculture Sector Readiness for enhanced climate finance and implementation of Koronivia Joint Work on Agriculture priorities in Southeast Asia project aims to enhance the capacity of six countries in Southeast Asia to develop national climate finance investment programmes and projects linked to adaptation and mitigation priorities for the agriculture sectors as well as exchange knowledge and learning to promote innovative mechanisms for public and private sector climate finance at national and regional levels. The project is implemented by FAO with the support of the Green Climate Fund (GCF) – the world’s largest dedicated fund for climate action – together with six participating countries: Cambodia, Lao PDR, Malaysia, Philippines, Thailand, and Viet Nam. 

For more information about the project in Cambodia, please contact FAO-KH@fao.org. To learn about the partnership between FAO and GCF, please visit the website.