CGCC, BTIC and UNIDO established strategic partnership promoting commercial biogas technologies in Cambodia to combat climate change
January 24, 2022Events and Activities
Phnom Penh, 24th January 2022 – Today, the Credit Guarantee Corporation of Cambodia Plc. (CGCC) entered into a Memorandum of Understanding (MoU) with the Biogas Technology and Information Center (BTIC) which was jointly established by the Royal University of Agriculture (RUA) and the United Nations Industrial Development Organization (UNIDO) through the project “Reduction of Greenhouse gas emission through Promotion of Commercial Biogas Plants”, funded by the Global Environment Facility (GEF) – as a key project for UNIDO’s ongoing Programme for Country Partnership in Cambodia. This cooperative partnership aims to promote investments of commercial biogas technologies in Cambodia.
Under the framework of the MOU, the two parties have agreed on the objective to jointly identify opportunities for collaborative activities and programs to assist biogas technology and investment through appropriate risk-sharing facilities and to take forward identified collaborative opportunities in bridging knowledge gaps of the biogas value chain among partners and relevant stakeholders. This initiative will support and enable access to financial resources for commercial biogas technology investment for the interested investors or promoters. With such enabling investment environment, it will foster the adoption and implementation of commercial biogas technologies in the livestock sector and agro-processing industry which will provide great potential for the sectors in harnessing wastes to energy and in complying with bio-security systems, sanitation and environmental safeguards (such as preventing odor and water pollution). Such cooperation will enable farmers, rural communities and agribusinesses to improve their livelihoods and increase business profitability in a good and sustainable manner.
On behalf of CGCC, Mr. Wong Keet Loong, Chief Executive Officer expressed “This MoU signing with BTIC is a step towards CGCC’s Environmental, Social and Governance (ESG) strategies to support the growth of the agriculture sector which is one of the key priority sectors in Cambodia. This sector is the main source of local employment and income in the rural areas. As the agriculture sector is the 2nd largest source of greenhouse gas (GHG) emissions, it will cause climate changes such as extended monsoon rainfalls and higher temperatures will have negative effects on this sector. Thus, the importance of reducing climate change is critical for the sustainability of the agro-processing and livestock industry.”
CGCC intends to work with FIs who are supportive of providing Green Financing to support the commercial biogas technologies to assist in reducing GHG emissions. With the technical expertise and support from BTIC in the biogas technology, CGCC has strong commitment in working together with other stakeholders to promote access to financing clean energy. As part of our ESG, the development of biodigester in the agriculture sector would contribute towards 8 SDG goals e.g. SDG 1 (End Poverty), SDG 2 (Zero Hunger), SDG 3 (Good health & well being), SDG 5 (Gender equality), SDG 7 (Affordable & Clean Energy), SDG 8 (Decent work & economic growth), SDG 13 (Climate Action) and SDG 15 (Life on Earth), Mr. Wong added.
“In addition to our strategic partnership with a commercial bank, we are honored to have the opportunity to collaborate closely with CGCC, a financial guarantee institution governed by the government, to provide an innovative financing solution to support the adoption of biogas technology for agribusinesses,” said Mr. Lor Lytour, Director of BTIC. He elaborated further: “The MOU will enable all key actors, including BTIC, CGCC and its bank partners as well as other stakeholders to working together closely and more effectively on a number of key priorities in order to deliver the response to the needs of Cambodia agribusiness in up taking this biogas technology which is proven as an effective and integrated waste management solution.” “We believe this partnership will foster the long-term growth in commercial animal production and agro-processing by promoting alternative and renewable energy and proper waste management, while contributing to the Government’s commitment in combating climate change,” he continued.
Mr. Narin Sok, UNIDO’s Country Representative, indicated the importance of this strategic partnership as an integral part of on-going efforts in developing conducive investment environment to address the financial constraints faced by the investors in investing in commercial biogas projects. He said: “I am pleased that CGCC is proactively demonstrating that our financial sector is willing to learn, adapt and step outside of their traditional roles. Innovation in financing mechanism means a lot to many development efforts. It will foster further investments in the commercial biogas in agribusiness, which is a significant breakthrough for the investors to adopt and implement the renewable energy technologies into their business practices. Investment in this type of clean energy will generate a great potential of economic, environmental and social benefit to the users, farm owners, investors, and society. This MoU is aligned with the Ministry of Agriculture, Forestry, and Fisheries’ efforts to update biogas policy for the period 2021-2030, as well as with many of the objectives set by the Government in UNIDO’s PCP, in the fields of sustainable energy and circular economy promotion.”
- The Credit Guarantee Corporation of Cambodia Plc. (CGCC) is a state-owned enterprise operated under the technical and financial guidance of the Ministry of Economy and Finance (MEF). CGCC was incorporated on 03 November 2020 and has been receiving technical support from ADB, WB, and UNCDF. CGCC’s mission is to provide credit guarantees to lenders on loans made to businesses based on international standards to share the risk with lenders and to improve financial inclusion. CGCC launched the first guarantee scheme on 29th March 2021. For more information, please visit www.cgcc.com.kh
- The BTIC Cambodia, a repository of commercial biogas technology and information center, was established jointly by the United Nations Industrial Development Organization (UNIDO) and the Royal University of Agriculture (RUA). The center is co-funded by the project entitled “Reduction of Greenhouse gas emission through Promotion of Commercial Biogas Plants” and RUA. The center was officially launched on 8th December 2016 and is being hosted by the Faculty of Agricultural Engineering at the RUA in Cambodia. For more information, please visit www.btic-rua.org
- The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations that focuses its efforts on relieving poverty by fostering productivity growth. It helps developing countries and countries with economies in transition in their fight against marginalization in today’s globalized world. In December 2020, UNIDO jointly launched a Programme for Country Partnership (PCP 2020-2023), which was jointly developed with the Royal Government of Cambodia (RGC) as an innovative platform for mobilizing blended financing for achieving Inclusive and Sustainable Industrial Development (ISID). To support the achievement of the SDGs and of the development priorities set by the Government, the PCP prioritizes two main components, namely (i) Agro Value Chain Development and (ii) Industrial Diversification, Innovation and development of Special Economic Zones (SEZs). The two main components will be supported through five crosscutting components: industrial policy and statistics, quality infrastructure, sustainable energy, circular economy, and women empowerment and youth employment. For more information, please visit www.unido.org