Signing Ceremony ESCAP Memorandum of Agreement with National Bank of Cambodia

[Check against delivery]

H.E. Dr Chea Serey, Governor of National Bank of Cambodia

Excellencies, distinguished guests, ladies, and gentlemen,

Good morning!

It is a great honour to represent the United Nations at this important event today. We are gathered to witness the signing of an agreement between the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the National Bank of Cambodia (NBC), which will support the development of the National Bank of Cambodia’s Sustainable Finance Roadmap.

The Royal Government of Cambodia and the UN in Cambodia signed the UN Sustainable Development Cooperation Framework 2024-2028 on 10 November this year to work together in addressing national priorities and achieving the SDGs. The four priority areas of the UN Cooperation Framework, which include human development, economic transformation, environment and social transformation, align closely with the priorities and objectives of the Royal Government of Cambodia’s Pentagonal Strategy – Phase 1, and thus the UN Cooperation Framework 2024-2028 will serve as a roadmap that will guide the work of the UN system in Cambodia to collectively support the Royal Government of Cambodia in building a green, just, fair, innovative and prosperous future for all people in Cambodia, ensuring the no one is left behind as the nation moves forward.

Cambodia, a nation that has demonstrated remarkable progress in the past decades, now faces one of its most formidable challenges yet - climate change. Ranked as the 12th most climate-risk-prone country globally, the urgency of action cannot be overstated. Cambodia faces a daunting US$ 7.8 billion funding requirement to reach the country’s Nationally Determined Contributions for climate mitigation and adaptation by 2030. Like other countries facing, Cambodia must look at how to best access finance for the SDGs and address climate change within a limited fiscal space.

The role of sustainable finance in this scenario is imperative. Central banks globally are increasingly aware of the financial instability that climate change can unleash. The United Nations in Cambodia is pleased to see that NBC has commendably initiated steps toward aligning Cambodia's financial system with the SDGs, specifically climate change commitments, promoting environmental sustainability and enhancing social and economic well-being.

The policy paper, jointly developed between ESCAP and NBC titled 'Green and Sustainable Financial Market Analysis: Financing Cambodia’s Future,' lays out clear policy recommendations for financing Cambodia's sustainable transition. NBC’s decision to take up the report’s first recommendation – developing a sustainable finance vision and roadmap – is the basis for this agreement that we are commemorating today. The Sustainable Finance Roadmap is a bold step in safeguarding economic progress against environmental and financial risks.

Moreover, as we are embarking on a journey towards a resilient, sustainable, and prosperous future for Cambodia, particularly in the context of the LDC graduation, the UN family in Cambodia are supporting the government to scale up climate finance, moving capital for mitigation and adaptation from funding to financing, climate responsive budgeting, as well as development and operationalization of different financing instruments such as: carbon markets (e.g., REDD+ and Article 6), green and thematic bonds, blended finance mechanisms for energy efficiency, and sustainable finance for biodiversity and protected areas, integrating these mechanisms with other sources of financing to support a coherent set of reforms through Integrated National Financing Framework (INFF).

Ladies and gentlemen, the path ahead is challenging but filled with opportunities. As we sign this Memorandum of Agreement, we are setting forth a vision that not only addresses the immediate concerns of climate change but also lays the foundation for financing to flow toward green and SDG-aligned initiatives that will have long-term economic and environmental impacts.

In closing, I would like to extend my heartfelt gratitude to everyone involved in this endeavour. Let us continue to work together under our shared vision for a sustainable and prosperous future for Cambodia.

Thank you.