“Study: Three Chinese Projects Allegedly Caused Environmental, Social Impacts”, 26 July 2026

A new research, which examined three major Chinese investment projects in Cambodia, found “significant compliance gaps” in Responsible Business Conduct (RBC) international standards causing severe impacts on the environment and community livelihoods although they adhered to minimum national laws.

The preliminary findings from the projects: Lower Sesan 2 hydropower dam, Dara Sakor Special Economic Zone (SEZ) and Funan Techo Canal were presented at a consultative workshop organized by the NGO Forum on Cambodia (NGOF) on July 24, 2026.

The workshop, done in collaboration with Give to Nature and supported by Porticus, aimed to review Environmental and Social Impact Assessment (ESIA) methodologies and promote the development of an Environmental, Social, and Governance (ESG) guidelines manual for sustainable investment.

The evaluation was conducted based on RBC standards, and national legal frameworks and international standards—International Financial Corporation, UN Guiding Principles, and the OECD (Organisation for Economic Cooperation and Development).

While most Chinese investment projects fulfilled Cambodia’s minimum legal requirements, such as the Law on Investment, Land Law, and the Environmental Code, the evaluation assessed using RBC standards showed “severe shortcomings”.

Key deficiencies include limited public consultation, weak law enforcement mechanisms, and redress for grievances along with inadequate livelihood restoration systems for affected people…

The study documented growing tension and negative impacts from the perspective of local governance and actual living conditions of residents. The impacts were divided into environmental and social impacts…

Almost all environmental degradation began with deforestation, leading to a loss of biodiversity…

As for social impacts, resettlement was identified as a long-term challenge…