Guidance: Growth Gateway: Cambodia–UK partnership for green and inclusive growth

Cambodia is moving to shape a near-term green infrastructure pipeline that can unlock inclusive growth, create thousands of jobs, and strengthen resilience against climate risks. The following 15 priority opportunities are identified as high-potential levers to deliver economic gains, employment, and meaningful climate benefits in the coming years. Each opportunity is characterised by its multiplier effects on local supply chains, skill development, and measurable reductions in greenhouse gas emissions and vulnerability to climate hazards.

1) Utility-scale solar photovoltaic (PV) deployment and storage
Expanding solar PV capacity on public land and brownfield sites, paired with energy storage, promises lower electricity costs, improved grid stability, and reduced dependence on fossil fuels. Economic benefits include job creation in installation, operation, and maintenance, plus opportunities for local manufacturing of components. Climate benefits arise from displaced fossil generation and expanded resilience to peak demand periods.

2) Grid modernisation and digitalisation
Upgrading transmission and distribution networks with smart technologies, advanced metering, and digital control systems enhances reliability and reduces losses. This supports higher integration of renewables, lowers outages, and creates skilled jobs in engineering, IT, and grid operations. Climate resilience is strengthened by better demand–supply balancing during extreme weather events.

3) Building energy efficiency and retrofit programmes
Implementing comprehensive energy-efficiency retrofits for public facilities, schools, hospitals, and housing reduces energy demand and utility bills. Local workforce training and retrofit supply chains generate employment opportunities, while climate benefits come from lower energy consumption and emissions across building stock.

4) Electrification of public transport
Shifting buses and other municipal transport to electric propulsion reduces urban air pollution and greenhouse gas emissions. This creates jobs in vehicle assembly, depot operations, and maintenance, while lowering long-run operating costs for city authorities. A cleaner urban environment also improves public health outcomes.

5) Sustainable urban mobility and transport corridors
Developing bus rapid transit (BRT), light rail, and improved non-motorised transport networks in key urban corridors can dramatically cut congestion and emissions. Economic benefits include construction and operation employment, increased accessibility for workers, and fostered commerce along corridors. Climate benefits come from mode-shift to lower-emission transport and improved air quality.

6) Green buildings and procurement reform
Raising standards through green building codes, performance-based requirements, and public procurement favours energy- and resource-efficient design. This stimulates local construction sectors, drives demand for green materials, and grows knowledge-based jobs. Climate benefits accrue from reduced embodied and operational carbon in built environments.

7) Urban nature-based solutions and flood resilience
Nature-based approaches—such as permeable surfaces, urban wetlands, and green corridors—reduce flood risk and urban heat island effects. They support local construction and maintenance jobs and create new services in landscape management. Climate benefits include enhanced water management, biodiversity protection, and resilience against extreme rainfall.

8) Water security, treatment and resilient supply
Modernising water treatment plants, expanding storage, and improving distribution reduces losses and ensures reliable supply for domestic and economic use. Employment grows through construction, operations, and local water-services expertise. Climate benefits include improved drought resilience and safer water quality in flood-prone zones.

9) Waste management, recycling and waste-to-energy
Developing integrated waste management systems with recycling facilities and waste-to-energy plants reduces methane emissions and extends landfill lifetimes. Local jobs are created in collection, sorting, processing, and plant operation. Climate benefits come from diverting waste from landfills and generating clean energy.

10) Climate-smart agriculture and rural livelihoods
Promoting precision irrigation, soil health, agroforestry, and drought-t resilient cropping supports higher yields with lower water and fertiliser inputs. This generates rural employment in agritech, extension services, and agro-processing, while cutting methane and nitrous oxide emissions and building resilience to climate variability.

11) Solar-powered irrigation and rural electrification
Deploying solar-powered pumps and solar microgrids for agricultural zones improves water-use efficiency and expands electricity access in rural areas. Benefits include job creation in installation and maintenance, reduced diesel fuel use, and climate benefits from avoided emissions and cleaner energy for farming activities.

12) Coastal and river restoration, mangrove protection and biodiversity
Restoration and protective ecosystems act as natural defences against storms, support fisheries, and preserve coastal livelihoods. Jobs arise in coastal restoration and ecotourism; climate benefits include coastal protection, carbon sequestration, and enhanced resilience to climate impacts.

13) Industrial parks decarbonisation and energy efficiency
Targeted programmes for industrial zones—such as energy audits, combined heat and power (CHP), energy management systems, and district cooling—reduce energy intensity and emissions. Employment opportunities span engineering services, equipment installation, and facility maintenance, while climate benefits come from lower sectoral emissions and improved energy security.

14) Water-energy nexus projects and green infrastructure integration
Joint planning of water and energy investments—such as pumped-storage options near hydropower and energy recovery in wastewater facilities—improves efficiency and resilience. This creates cross-disciplinary jobs in design, construction, and operations, with climate benefits from reduced system risk and cleaner energy and water services.

15) Financing, governance, and local supplier development
Establishing blended-finance facilities, risk-sharing instruments, and capacity-building for local procurement unlocks private investment and accelerates project delivery. This enabling environment generates local employment and businesses across supply chains, while attracting climate finance that supports all 14 preceding opportunities.

A practical path forward
To translate these opportunities into tangible projects, a coordinated approach is essential. Key steps include:
– Aligning policy and regulatory frameworks to simplify permitting, standards, and public procurement for green infrastructure.
– Mobilising diverse finance, including public funds, concessional facilities, and private sector capital, with clear risk-sharing and local content requirements.
– Building local capabilities through training programmes, supplier development, and knowledge transfer to ensure long-term operation and maintenance jobs.
– Strengthening data and monitoring to track economic, employment, and climate outcomes, enabling iterative improvements and accountability.

With a clear focus on near-term action, Cambodia can unlock a pipeline of green infrastructure that supports robust economic growth, creates quality employment, and advances climate resilience across communities. The 15 priority opportunities outlined here offer a coherent, investable roadmap for policymakers, financiers, utilities and the private sector to collaborate in delivering sustainable development for the country.

April 20, 2026 at 11:58AM
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