Experts are highlighting the challenges facing Cambodia’s garment sector as it attempts to decarbonize and meet global sustainability standards. The main obstacles are high electricity costs and a lack of financial resources for renewable energy. Currently, 800 factories in Cambodia consume 8% of the country’s electricity, which costs them $350 million annually. If they were to replace all biomass with electric boilers, their energy consumption would rise by 13%, increasing their annual bill to $650 million.
Peter Ford, energy policy lead for garment and clean energy skills at Energy Lab, notes that global brands aim to reduce carbon emissions by 50% by 2030 and achieve net zero by 2050. Many brands, including Nike and Adidas, are already converting to electric boilers. However, Cambodia’s reliance on biomass, often sourced from problematic sources such as deforestation, is a major concern. Ford emphasizes that there is a direct link between biomass use and deforestation in Cambodia, making electrification a priority.
Saron Sovichea, head of the STAR Network Secretariat, adds that renewable energy faces significant challenges in developing countries due to high costs, financing difficulties, and policy uncertainty.Interest rates are unfavorable, and solar energy investments have long payback periods, making financial decisions complicated. Sovichea suggests that countries like Vietnam and Bangladesh have experimented with policies such as net metering, but these have required adjustments over time, creating unpredictability for investors.
Despite these challenges, experts remain optimistic about a greener future for Cambodia’s garment sector. Ly Tekheng, assistant to the Secretary General of the Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC), calls for the government to support making electricity cheaper and more accessible for factories. Um Serivuth, technical expert at the Ministry of Industry, Science, Technology & Innovation, notes that the government has been promoting green energy and has set a target of achieving 70% of renewable energy projects.
To support the transition to renewable energy, experts recommend establishing renewable energy certificates and power purchase agreements. Peter Ford suggests that energy certificates should be available in Cambodia to help brands understand factory energy use, while the country should improve rooftop solar access and corporate power purchase agreements. Saron Sovichea emphasizes the need for awareness and capacity building among lenders and manufacturers to facilitate a successful transition. With the right policies and support, Cambodia’s garment sector can reduce its carbon footprint and become more sustainable.