GCPF AND PRASAC PROMOTE GREEN GROWTH IN CAMBODIA
The Global Climate Partnership Fund and Cambodia’s leading microfinance institution PRASAC are teaming up to promote “Green Lending and Green Growth” in Cambodia. The one-day event held on 24 May in Phnom Penh brought together stakeholders from the public and private sectors for an active discussion on how to facilitate the promotion of green technologies.
The fight against climate change and the transition to a low-carbon economy presents a major challenge to society, especially in emerging economies. While low-income segments of the population are often hardest hit by issues such as severe weather conditions, rising levels of industrialization and standards of living are simultaneously causing a rapid increase in CO2 emissions.
In this context, financial institutions can play an important role to promote environmental sustainability by providing loans for activities targeting energy efficiency or renewable energy generation. In microfinance, “green lending” aims at incorporate a third bottom besides financial inclusion and social empowerment.
In 2016, the Global Climate Partnership Fund (GCPF) signed a USD 20 million green lending facility with Cambodia’s leading microfinance institution PRASAC. Through the lending facility, PRASAC is offering loans that improve energy efficiency and promote the use of renewable energy. Given the institution’s outreach, the offering targets a very broad section of the population. Focus areas include loans for energy-efficient agricultural equipment, household appliances and rooftop solar installations.
In order to showcase the potential of green lending in Cambodia and promote the adaption of climate-conscious practices, PRASAC and GCPF have teamed up to host the first “Green Lending and Green Growth in Cambodia” event to be held on 24 May in Phnom Penh.
Speaking on behalf of PRASAC, Pen Sovannsoksitha, Vice President & Department Manager Marketing & Communications and in charge of environmental issues, said: “Green lending provides an opportunity for us to scale up our business in a highly competitive market environment. We’re happy that we could demonstrate that green investments are a viable market for financial institutions in Cambodia. With GCPF’s support, we are confident that we will be able to increase our green lending portfolio.”
Sathish Dhanapal, Energy Specialist for GCPF’s Asia Pacific operations, added: “We are proud to celebrate this important milestone in our partnership with PRASAC in promoting green lending in Cambodia. We hope this event will create a platform for practitioners to share their knowledge and to address challenges in implementing green lending.”
“Green Lending and Green Growth in Cambodia” is coordinated by MicroEnergy International GmbH and ACCESS Advisory and hosted by PRASAC, with the support of the Global Climate Partnership Fund.
About GCPF www.gcpf.lu
The Global Climate Partnership Fund (GCPF) is an investment company which tackles the shortage of appropriate financing for low-carbon projects in developing economies. The Fund focuses on financing energy efficiency and renewable energy projects for SMEs and private households in emerging economies, primarily in cooperation with local financial institutions, but also directly. Established in 2009 by the German Federal Ministry of the Environment, Nature Conservation, Building and Nuclear Safety and KfW Entwicklungsbank as a public-private partnership under Luxembourg law and managed by responsAbility Investments, the Fund manages committed capital of more than USD 500 m invested across 22 countries.
About Prasac www.prasac.com.kh
PRASAC, Cambodia’s largest microfinance institution, helps Cambodian people improve their living standards by providing sound financial solutions for growth, such as loans, deposits, bill payments, money transfers, foreign exchange, payroll, mobile top-up with various distribution channels, namely its nationwide network with 181 branches, mobile and Internet banking, 116 ATMs, and 127 POS. As of November 2016, PRASAC had lent USD 994 million to more than 341,000 active borrowers, and mobilised deposits of USD 601 million from more than 488,000 depositors.