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Growth Gateway

UK-Cambodia partnership advances the development of a new Green Special Economic Zone (GSEZ)

2025

Cambodia faces the growing impacts of climate change, which could reduce its GDP by up to 9% by 2050 and contribute to a projected infrastructure investment gap of £75 billion.

Over 20% of these losses are directly attributable to adverse climate impacts e.g., increased flooding, extreme heat, and resource stress. As an export-reliant nation, Cambodia also faces both opportunity and urgency from the global transition to low-carbon supply chains to adopt greener production models.

A key strategic response to these challenges is the UK involvement in Cambodia’s infrastructure pipeline, including the development of a Green Special Economic Zone (GSEZ). This offers a route to green industrial diversification while positioning Cambodia in future global value chains. For the UK, this can unlock up to £275M in commercial potential, advancing mutual climate, trade and development goals.

Key Highlights

Investment Gap

£75B

investment gap in mitigation and adaptation infrastructure

Exports Potential

~60%

of Cambodia exports go to markets with rising green trade standards

Infrastructure Pipeline

600+

infrastructure related projects across public and private sectors in Cambodia

Recognising both Cambodia’s climate investment challenges and green growth opportunities, Growth Gateway worked closely with the Government of Cambodia to develop a pipeline of green infrastructure opportunities where UK finance, expertise and supply chain expertise can be strategically positioned.

At the centre of this effort was the development of a market-ready GSEZ. This initiative focused on three levers: identifying projects suited to UK strengths, engaging the market to refine a commercially viable GSEZ concept and integrating UK supply chain and finance expertise. This approach is strengthening UK-Cambodia bilateral relations, positioning the UK as a trusted partner in Cambodia’s green growth journey, and unlocking Cambodia’s potential as a green manufacturing hub in ASEAN.

Support Provided

Shortlisted 25+ Priority Green Infrastructure Projects

To unlock near and medium-term commercial wins, Growth Gateway conducted a structured review of 600+ public and private projects in Cambodia. From this, it identified 25+ high-potential opportunities aligned to UK financing and supply chain strengths, across key sectors:

  • Logistics (e.g., GSEZ, Phnom Penh Logistics Complex)
  • Port (e.g., Phnom Penh Port expansion)
  • Railway (e.g., Phnom Penh–Poi Pet Rail)
  • Airport (e.g., Mondulkiri Airport, New Techo Airport)
  • Energy and utilities (e.g., 200MW BESS1, grid upgrades)
  • Social infrastructure (e.g. affordable housing)
Supported The Development Of Cambodia’s Flagship GSEZ

Growth Gateway helped establish the UK-Cambodia Strategic Infrastructure Partnership and a bilateral MOU, working with the government to shape the country’s first GSEZ. This included identifying a 150-550 hectares site and mobilising UK expertise across government, industry and finance to collaboratively develop the project vision.

  • Convened a panel of 14 UK companies in technical advisory, engineering and goods for GSEZ deployment
  • Attracted interest from UK investors (UKEF, BII, PIDG) and global developers (DP World, Marubeni) for guarantees, lending, and technical support
  • Demonstrated strong business interest, with 65% of surveyed firms interested in locating within the GSEZ
Connected UK Firms To Commercial Infrastructure Opportunities

The programme also enabled UK firms to pursue commercial opportunities in Cambodia’s green infrastructure pipeline by strengthening their market positioning and connecting them with key decision-makers.

  • Facilitated 1:1 engagement between UK businesses and key Cambodian project owners
  • Equipped firms with market guidance through exclusive briefings and a customised market playbook
  • Reinforced UK government-to-government (G2G) support across the identified 25+ projects via the UK-Cambodia Infrastructure Chamber (UKCIC)

The pilot has expanded to Iloilo, which has the country’s largest hectarage of rice production. To scale efforts, Growth Gateway is also helping mobilise around £14 million in blended finance for early-stage climate-resilient food and water projects through an Adaptation Investment Platform.

Impact Achieved

£6B+ project pipeline

identified with potential for UK financing or supply chain involvement

800kMT of CO2

emissions estimated to be reduced annually through early integration of renewable energy & climate-resilient infrastructure in the GSEZ​

20+ UK Firms

 supported to explore and advance deal discussions on project opportunities in Cambodia infrastructure

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