The Government of Cambodia has prioritized climate mitigation and adaptation as one of the top priorities in its national development strategy. Without climate adaptation and mitigation investment, it is estimated that the impact of climate change could cost Cambodia 1 percent of GDP per year for the next decade and could potentially wipe out all economic gains by 2050. The COVID-19 pandemic has further exacerbated the problem by limiting the available fiscal space to address climate risk and fund the SDGs. The funding needed to achieve these goals is substantial. In Cambodia’s latest nationally determined contribution (NDC), the government of Cambodia declared that its climate mitigation and adaptation plans would require total funding of roughly $7.8 billion.
There is a growing movement towards aligning finance with sustainable development. The Royal Government of Cambodia (RGC) is committed to addressing the risks of climate change, meeting its United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement commitments, and achieving the Sustainable Development Goals (SDG) by 2030. If Cambodia is to accomplish these goals, financing will be crucial. Given the growing momentum of sustainable finance, the Royal Government of Cambodia (RGC) is examining the potential of green, social and sustainability bonds to assist in financing its plans.
The Ministry of Economy and Finance is in the process of drafting its Comprehensive Policy Framework on Development of Government Securities 2023 – 2028. To support the governments Framework development and policy considerations, the Ministry of Economy and Finance has requested support from the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Global Green Growth Institute (GGGI) in the development of a Sovereign Thematic Bond Issuance Policy Paper which will support and feed into the Government’s Comprehensive Policy Framework on the Development of Government Securities.
This workshop's primary aim is to validate the draft Sovereign Thematic Bond Issuance Policy Paper. As outlined in the policy paper, the workshop will examine the steps involved in issuing sovereign thematic bonds, the status of the Cambodian bond market, the potential for a sovereign thematic bond issuance, and the possible benefits, drawbacks, and challenges. Furthermore, the workshop will survey the stages of issuing a sovereign thematic bond, including the feasibility, pre-issuance, issuance, and post-issuance stages and the roles and responsibilities of different stakeholders in the process. Finally, the workshop will consider the proposed recommendations for the Royal Government of Cambodia if the government plans to progress towards a sovereign thematic issuance.