Speaking at a panel discussion at the official opening of Clean Energy Week 2023, experts from various backgrounds discussed Cambodia’s opportunities and challenges in the transition to clean energy, and generally agreed that blended finance is key to the transition.

The opening ceremony was attended by Natharoun Ngo Son, Country Director of EnergyLab, Alissar Chaker, Resident Representative of the United Nations Development Program, Matthew Allen, First Secretary, Development – Cambodia, Laos, and Thailand, Justin Whyatt, Australian Ambassador to Cambodia, and hundreds of relevant stakeholders.

Hanh Le, Founder and CEO of Empacte, shared her experience in the clean energy sector at the panel session. Besides being involved in solar and waste energy projects, Vietnam was also involved in the first international verified issuance of green bonds, she said.

She said that clean energy projects have one thing in common, which is government policy incentives that can trigger interest in investment. For instance, the Investment Policy Review of Vietnam can trigger a number of players, such as cash flow from investing activities (CFI), regional investors, and domestic commercial banks.

Political commitment, such as the goal of achieving net zero, is also important, Le added. She said, “For the solar rooftop system, the commercial banks do not know the risks very well so we need to work together to mitigate the risks.”

Ten years ago, Le worked with the Cambodian government to assist with international negotiations in the climate agreement. She said that blended finance is key to unlocking the clean energy transition.

Additionally, blended finance consists of many components, such as grants and concessional loans.

Ratana Pich, Renewable Energy Manager of CAPRED, agreed government incentives are essential for unlocking the transition because they can address challenges faced by project owners.

Faya Hayati, Senior Economist, Cambodia and Myanmar, of World Bank, said that blended finance is vital in the transition to clean energy because it guarantees concessional financing. For instance, the World Bank’s development policy aims to consult with the government and come up with policy actions that are really important.