Growth Gateway: Investing in green sectors in ASEAN, Cambodia sustainability opportunities (summary)
Published 17 September 2025
Southeast Asia is on track to become the world’s fourth-largest economy by 2030, with Cambodia playing an important role due to its large agricultural workforce and rich biodiversity. However, the country remains highly vulnerable to climate change, with extreme weather events threatening livelihoods and food security.
In response, Cambodia has committed to reducing emissions by 42% by 2030 through its Nationally Determined Contribution (NDC) and National Adaptation Plan (NAP), focusing on mitigation in energy and industry, and resilience in agriculture.
The UK, through the Growth Gateway programme, has partnered with Cambodia to assess the socio-economic benefits of implementing these climate policies. The analysis estimates that full implementation of the NDC and NAP could generate an additional 250,000 to 300,000 jobs and boost GDP by £1 billion to 1.2 billion by 2030.
Further ambition aligned with the 1.5°C climate target could yield an extra 100,000 to 120,000 jobs and £0.5 billion to 0.6 billion in GDP. These gains are concentrated in agriculture, energy, and industry, with significant benefits for women, rural communities, and MSMEs.
The analysis prioritised sectors based on their vulnerability and potential for climate impact, using ND-GAIN indicators. It also identified a robust pipeline of over 80 high-potential investment projects worth up to USD 76 million, including solar irrigation, biodigesters, and sustainable manufacturing. Notable examples include ATEC Bio’s biodigester expansion and EGE Cambodia’s solar irrigation systems.
The Foreign, Commonwealth & Development Office (FCDO) will continue to partner closely with Cambodia to achieve its climate and economic development objectives. FCDO looks forward to exploring further trade and investment opportunities together in the identified pipeline above to accelerate sustainable development with significant impact on mitigation, adaptation, and resilience.