Cambodia’s Emission Budget and Carbon Pricing Pathways

Cambodia budget
Dr Eilya Torshizian

Principal Economics is supporting the World Bank with analysis for Cambodia’s emissions budget, focusing on how carbon pricing can help deliver emissions targets while maintaining economic resilience. The work reinforces our presence across the Pacific and Southeast Asia, where policy decisions often require advice that is both technically rigorous and implementable within local institutional settings.

Our advice assessed carbon pricing instruments and associated design choices, including coverage, price paths, and interactions with existing taxes and regulations. We examined how these settings transmit through the economy—by sector and along supply chains—affecting production costs, competitiveness, investment incentives, and household prices. The analysis emphasised transparency: clearly stated assumptions, scenario-based results, and practical interpretation for decision-makers.

A core feature of the project was linking emissions outcomes to real-economy impacts, so that climate ambition and economic policy could be assessed together. This approach helps identify where complementary measures may be needed—such as targeted support for exposed industries, recycling revenue to households, or using proceeds to fund productivity-enhancing investments—so Cambodia can progress towards its emissions goals with a policy package that is credible, durable, and socially workable.