Cambodia’s Climate Crisis: Local Heroes Tackle Global Threats

Cambodia faces a critical challenge as climate change threatens to undo decades of economic progress. A recent World Bank report underscores the importance of locally-led climate action, highlighting the need for better fiscal mechanisms, enhanced local capacities, and a coordinated, data-driven approach. With lessons learned from a decade of pilot programs, Cambodia must scale up its efforts to safeguard its future.

Cambodia, a nation that has seen remarkable economic progress over the past two decades, now stands at a critical crossroads. As it eyes the ambitious goal of becoming an upper-middle-income country by 2030 and a high-income nation by 2050, an unprecedented threat looms large—climate change. According to a recent report titled "Scaling Up Locally-Led Climate Action in Cambodia" by the World Bank, the country's Gross Domestic Product (GDP) could plummet by 9.4% by mid-century, and crop yields may fall by 30% if action isn’t taken soon. The stakes couldn’t be higher, and the battle is being fought on the ground, in Cambodia’s communes and sangkats.

The Local Frontline in a Global Battle

Cambodia’s fight against climate change is not happening in the corridors of international power but in its local communities. The report highlights that the Royal Government of Cambodia (RGC) has implemented significant decentralization and deconcentration reforms, empowering local governments to play a key role in climate action. These reforms include decentralized systems for local development planning and financing, most notably through the Commune Investment Program (CIP).

Yet, despite these efforts, integrating climate resilience into local development remains a significant challenge. While robust, the fiscal mechanisms in place have not been fully optimized. Less than 1% of commune budgets are spent on natural resources management and climate change-related investments. This gap underscores the need for enhanced awareness, better planning tools, and additional financial resources at the local level.

Incentivizing Change: A Decade of Lessons

Over the past decade, Cambodia has experimented with performance-based climate resilience grants (PBCRGs), an incentive mechanism designed to push local governments towards climate-smart investments. These grants have allowed subnational governments to invest nearly $2.9 million into climate priorities. However, while the program has shown promise, it remains a pilot, and its full potential has yet to be realized.

The PBCRG model could be a game-changer if scaled up and integrated into Cambodia's national systems. But for that to happen, local governments must be equipped not just with funds but also with the knowledge and skills to make informed, climate-resilient decisions. The report emphasizes that enhancing the social capital of communities—through support for savings groups and skill development—is just as important as building physical infrastructure. After all, resilience is as much about people as it is about structures.

Knowledge is Power: The Need for Data and Cooperation

The battle against climate change is a data-driven one. For local actors to make informed decisions, they need access to accurate climate change projections and practical, actionable information. The report highlights that, currently, much of the local climate planning is based on managing existing risks rather than preparing for future challenges. This needs to change.

Moreover, the report calls for an integrated and multisectoral approach across all levels of government. The line ministries need to work in concert with local governments to ensure that climate action is coordinated and effective. This coordination is not just a matter of efficiency but a necessity to avoid maladaptation—efforts that could, unintentionally, make communities more vulnerable.

Learning from Neighbors: Best Practices from Asia

Cambodia is not alone in this fight. The report draws on lessons from 24 community-based climate action projects across Asia, including eight in Cambodia. These case studies show that inclusive and participatory approaches, tailored to the specific biophysical and agroecological context, are key to success. When local communities are involved in designing and implementing climate solutions, the interventions are more likely to be sustainable and effective.