Cambodia

Project title Sector SCP practice
AEMAS Utilities sector Product design for sustainability
Efficient Air Conditioners / ASEAN SHINE Electrical equipment industry Eco-labels, Product design for sustainability
MEET-BIS Cambodia Machinery industry Environmental Management Systems
Reducing Plastic Bag Waste Cross cutting issues Waste Management
SPIN-VCL Textile and leather industry Product design for sustainability
Sustainable Freight and Logistics Sustainable Supply Chain Management
Sustainable Rattan Wood-based industry Cleaner Production, Product design for sustainability
WtE in Rice Milling Sector Food and beverage Cleaner Production

Focal point

Dr. Sereyrotha Ken, Deputy Secretary, General Secretariat of the National Council for Sustainable Development  and Mr. Meng Eang Taing, Director of Department of Green Economy, General Secretariat of National Council for Sustainable Development.

SWITCH-Asia RPSC

Under SWITCH-Asia’s Regional Policy Support Component, UNEP’s main partner is the Ministry of Environment & National Council on Green Growth. Currently, discussions are underway to broaden policy support activities in 2016, especially along the topics of the 10YFP’s programme areas. The following areas have been identified as priority for capacity building and policy support on SCP after a comprehensive needs’ analysis in the country. 

Partnerships between Government, Research and Industry

  • Establish tripartite partnerships between government, research and the market to achieve greater implementation of SCP technologies and practices and to mobilize funding for research and implementation. Partnerships with business would also increase the possibility of commercialization of SCP innovations.
  • Facilitation of producer networks through information platforms such as, for example, effective regional networks on cleaner production. This would also provide a mechanism for transferring technology between developed and developing countries.

Policy support to raise the awareness of and provide training in SCP 

  • Establish a program to support training in SCP as part staff development in ministries and other public organizations
  • Run awareness campaign on SCP through regional, national and local levels of networking, i.e. education, distribution of information, exchanges of best practices and lessons learnt
  • Expand programmes on technical training and provide support to develop adequate technical guidelines for SCP technologies and practices.

Policy support to coordinate SCP activities

  • Intensify inter-agency, inter-line ministries and multi-stakeholder coordination and involvements (building upon and extending the mechanisms established in the Green Growth Roadmap process)
  • Raise awareness of environmental sustainability issues and help to build up skills in environmental and ecological economics at the Supreme National Economic Council (SNEC)
  • Strengthen the role of SCP (and GG) in the National Strategic Development Plan and resolve conflicts between development and environmental policy objectives.

Policy support for cooperation and implementation

  • Support the mainstreaming of SCP in national development plans, education system and industrial and agricultural production of Cambodia

Status of SCP policy framework

Cambodia has various existing policies, strategies and plans relating to Sustainable Consumption and Production and Resource Efficiency These fall under a range of ministries, including the Ministry of Environment (MOE), the Ministry of Agriculture, Forestry and Fisheries (MAFF), the Ministry of Rural Development (MORD), and the Ministry of Industry, Mines and Energy (MIME). 

In 2010, Cambodia was one of the first Asian countries to adopt a National Green Growth Roadmap, aiming to shift from a ‘grow first, clean up later’ attitude to a more considered approach to economic, environmental and social development. This was followed by a National Policy on Green Growth and a National Strategic Plan on Green Growth.

National Policy on Green Growth

The National Policy on Green Growth was approved on March 2013:

  • To strike balance of economic development with environment, society, culture and sustainable use of national resources through integration, matching and adaptation, as well as harmonization between a green growth principle and national policy. 
  • To enhance the well-being and livelihood of all people in harmonization with ecological safety through green growth, basing on green economy, blue economy, environment protection, social safety nets system and uphold of national cultural identity. 

National Strategic Plan on Green Growth 2013 – 2020 (approved by Council of Ministers on March 2013) focusing on:

  • Green investment and green jobs creation 
  • Green economy management in balance with environment 
  • Blue economy development with sustainability 
  • Green Environment and natural resources management 
  • Human resources development and green education 
  • Effective green technology management 
  • Promotion of a green social safety system 
  • Uphold and protection of green cultural heritage and national identity 
  • Good governance on Green Growth 

 Green Growth Institutionalization in Cambodia

  • The Government has established National Council on Green Growth (NCGG); General  Secretariat for Green Growth (GSGG), built on the existing National Green Growth Secretariat and Inter-Ministerial Working Group on Green Growth. 

Environmental Governance Reform for Cambodia

The Kingdom of Cambodia is in the process of an Environmental Governance Reform being led under the vision and leadership of His Excellency Say Samal, Minister of Environment. The Environmental Governance Reform seeks to create an enabling legal and policy environment that will make it possible to achieve environmental protection while supporting sustainable development. It is composed of three core elements: capacity building within the Ministry of Environment, the creation of the National Council for Sustainable Development and the development of a National Environmental Strategy and Action Plan (NESAP). 

The National Council for Sustainable Development (NCSD)

The Governance Reform in Cambodia has already led to the establishment in May 2015 of the National Council for Sustainable Development (NCSD), a policy making body designed to promote sustainable development, ensuring economic, environmental, social and cultural balance of the nation. The first meeting of the NCSD occurred on 31 August 2016 under chairmanship of the Minister of Environment. This meeting brought together for the first time senior government representatives at the central and provincial levels to review and decide on a wide range of agenda items related to the reform. (Source: http://www.camclimate.org.kh/en/policies/ncsd-news/355-the-first-meeting-of-the-national-council-for-sustainable-development-ncsd-has-now-started.html / Second Source: http://www.akp.gov.kh/?p=86304

The National Environment Strategy and Action Plan (NESAP)

In addition, the National Environment Strategy and Action Plan (NESAP) is currently under review and projected to be completed by the end of 2016. On August 10th, more than 150 national stakeholders gathered in Phnom Penh to review the first draft of the NESAP. The NESAP prioritizes policy and financing tools as part of a framework to ensure that economic development is efficient, sustainable, and inclusive over the next 8-years. It will be the first national environmental strategy for the country in more than a decade. The national consultation workshop was organized by the Ministry of Environment with support from the Greater Mekong Sub-region Core Environment Program and was attended by government officials from multiple ministries as well as development partner representatives. The draft NESAP will be finalized during August to October and then submitted to government approval processes. (Source: http://www.gms-eoc.org/news/cambodia-reviews-national-environment-strategy-draft

New Environmental Code & Capacity Building within the Ministry of Environment

In line with this Environmental Governance Reform, the United Nations Environment Programme, through the EU-funded SWITCH-Asia Programme, is cooperating with the United Nations Development Programme (UNDP) on enhancing the Ministry of Environment’s capacity with the aim of transforming it into a more professional, modern, effective and efficient organization and creating a completely new environmental protection and natural resources conservation legal framework. In particular, SWITCH-Asia is providing technical assistance to the development of a new Environmental Code and Decision Support System on Integrated Ecosystem Mapping for the country. Among other things, the new Environmental Code will entail legal provisions to strengthen the conservation of natural resources and wildlife, build climate resilience, promote the use of renewable and environmentally friendly energy, and build sustainable cities with the capacity to deal with air and waste pollution. 

The purpose of the code is to support “sustainable development in Cambodia through the protection of the environment and sustainable use of natural resources”. To this end, the Code will clarify the mandates and roles of government entities concerned, offering the necessary specificity for the implementation of the Code to be effective. It will also contribute to putting in place a system of checks and balances; for example, by ensuring environmental impact assessments and the monitoring of developmental activities proposed by other ministries, with a view to ensuring social and environmental safeguards. 

Moreover, the Code will define enabling regulatory frameworks for the sustainable use of lands, water, forests, energy, and for the creation of sustainable, environmentally friendly, and climate resilient cities and communities. These regulatory frameworks include legal requirements for rigorous environmental impact assessment, and robust environmental quality standards.  

Last but not least, the Code is significant for its contribution to transparency and accountability. Effective and full participation of people and communities in environmental governance is crucial to make best use of their firsthand knowledge of environmental resources, and because people and communities, Indigenous Peoples in particular, are directly affected by environmental change or degradation. Women are often most dependent on natural resources and that negative environmental change have a big impact on their lives and on their family. In order to promote inclusive and equitable development, it is therefore very important that the Environmental Code provide opportunities for both women and men to share their knowledge and voice their concerns. 

The new Environmental Code provides a legal foundation for strengthening the rights of citizens to participate in environmental decisions and actions that affect them, and extends to them the right to obtain relevant environmental information. It aspires to create an enabling legal environment for attaining all of these SDGs, for Cambodia to thrive, now and in the future.

Law on Consumer Protection

A specific law on Consumer Protection is currently in the process of being drafted with the support of UNCTAD (Sources: Ministry of Commerce, 2012)

The following has also been provided as information from the SCP National Focal Point on Laws and Policies that support SCP, though their focus is across environmental areas in governance. 

Other Laws of relevance to SCP

  • Law on Environmental Protection and Natural Resources Management (November 18, 1996)
  • Law on Land (30 August 2001)
  • Law on Forest (31 August 2002)
  • Law on Fish (21 May 2006)
  • Law on Administration of Factory and Handicraft (23 June 2006)
  • Law on Water Resources Management of the Kingdom of Cambodia (June 29, 2007)
  • Law on Protected Areas (Feb. 15, 2008)
  • Law on biosafety (Feb. 18, 2008)

In ensuring resource efficiency from usage to production, Law on Administration of Factory and Handicraft (23 June 2006) determines procedures and conditions for setting up and operating factories, and how to govern all factories and handicrafts in Cambodia. Article 6 in Chapter 2 stipulates quality control, standard, registration and standard mark of product.

Sub-Decrees: 

  • Sub-decree on Environmental Impact Assessment (1999)
  • Sub-decree on water pollution control (April 6, 1999)
  • Sub-decree on solid waste control (April 27, 1999)
  • Sub-decree on air pollution control (August 10, 2000)
  • Sub-decree on Ozone Layer Pollutant Management (March 17, 2005).

The sub-decrees on water pollution control and wastewater management, together with the sub-decree on EIAs provide a legal framework for the sound management of an ecological system to achieve sustainable clean, equitable, safe and zero-waste targets in line with sustainable developmental principles. In other words, the constitution, laws, royal decrees, sub-decrees and declarations on environment and natural resources serve as a crucial legal instrument to uphold an everlasting human-nature loving and harmonious relationship for Cambodia. This suggests that socio-economic development needs to include environmental costs, and then, developmental activities go hand in hand with a healthy ecology.

In 1996, Cambodia instituted also the Law in Environmental Protection and Natural Resources Management, which regulates environmental protection and natural resource management. Cambodia also has a National Sustainable Development Strategy, adopted in 2009, proposing strategic measures for making various sectors more sustainable. 

Resource consumption and production

Main Resource Consumption and Resource Efficiency Indicators (2010)

Population (millions) 14.365
GDP (billion USD) 9.984
GDP is in USD exchange rate based on year 2005 and deflated.
Source: UNSD database.
Subject Area Total Per person Per USD$ of GDP
Domestic Material Consumption, DMC
(tonnes, tonnes per capita, kgr per 1USD$)
93,663,067 6.52 10.77
GHG emissions
(kilotonnes,tonnes per capita, kgr per 1USD$ )
126,272 8.79 14.53
Total Primary Energy Supply, TPES
(Petajoules, Gigajoules per capita, Megajoules per 1USD$)
210.34 14.64 24.20
Water Use
(Trillion litres, Kilolitres per capita, Litres per 1USD$)
2.18 152.04 251.23
Subject Area Indicator
Population density 2015 (UNESA 2012 revision), population per sq.km 87
GDP per capita (USD), 2013 WB 1,006.80
HDI Rank (2013) UNDP NA
Arable land (hectares per person) WB 2012 0.28
Forest cover in % (2010), UNSTATS 57
Material intensity (2010)UNEP 10.77
Per-capita energy use (kg of oil equivalent per capita) 2011, WB 365
Energy intensity
(total primary energy consumption per USD of GDP) 2011, EIA
8,067.15
GHG intensity (2010) UNEP 14.53
CO2 emissions (metric tone per capita), 2010, WB 0.3
Number of Middle Class consumers % (2010), ADB 8
Number of people with income < 2USD/day (PPP, USD, %), 2010, ADB 92

Trends in Resource Consumption and Resource Efficiency Indicators (1970-2010)

DE: Domestic Extraction;
MI: Material Intensity of the economy;
MF: Material Footprint.
All other abbreviations explained in the table above

In panel a) we can see that growth in Cambodia’s GHG emissions grew faster than the other overview indicators (no TPES value was available for 1970 therefore no indexed value possible), followed by GDP for most of the period, with a late spike in DMC. Cambodia’s DE, in panel b), was long dominated by biomass, however non- metallic minerals grow very rapidly in the final years and become dominant by 2010, and account for the rapid increase in DMC described for panel a). A similar trajectory for the growth in the importance of non-metallic minerals is apparent in the MF shown in panel c), however on MF measures there was a major and sustained decrease in biomass used per capita between 1990 and 2002 which further emphasized the growth in non- metallic minerals. In panel d) we see Cambodia becoming less materials intense for the majority of the period
1990 to 2010, with this trend reversing rapidly from 2008 for both MF and DMC based measures. In panel e) we see that footprint based measures tend to estimate much lower energy intensities and per capita usage than TPES based indicators, while the reverse is true for GHGs in panel f), at least for the first decade (1990 to 2000), after which there is no consistent pattern.

(Source: UNEP CSIRO Indicators for a Resource Efficient and Green Asia and the Pacific, 2015). 

Key references relevant to SCP

  • SWITCH-Asia RPSC SCP Policy Needs Assessment, 2011.
  • Ministry of Environment Green Growth Secretariat, 2011. The National Green Growth Roadmap, Phnom Penh.
  • Ministry of Planning (MoP), 2010. Achieving Cambodia’s Millennium Development Goals Update 2010. Phnom Penh.
  • Royal Government of Cambodia, 2010. National Strategic Development Plan, Update 2009-2013, Phnom Penh.

UNEP's relevant activities

The information in the country profiles herein have been obtained through research with firsthand and secondhand sources. The information presented herein cannot be considered as official policy of governments or other official bodies. The SWITCH-Asia Programme cannot be held responsible for the content of the sites to which it provides links or for the availability of servers or links. Information is being continuously updated in order to maintain an up to date country profile. If you would like to contribute information for this profile or have any further comments, please send an email to: SWITCH-PSC@unep.org

Status

Introduction

Cambodia has one of the most vibrant microfinanc­ing sectors in the world. Yet, financing that exceeds the smaller sums available from microfinance institutions are difficult to obtain especially for small and medium-sized enterprises (SMEs). For continuing the growth path that Cambodia has embarked on the access of SMEs to financing is crucial. Investments in business expansion and upgrading are important for the economic growth of the country.

At the same time, investments should not only be made in mere expansion but also in efficiency im­provements. The benefit of such efficiency improvements is that the economic productivity is increased and the en­vironmental impacts are reduced. In Cambodia, however, the market for finance for such types of investment is still rather small. 

Overall, SMEs’ access to formal finance remains restrained. The majority of Cambodian SMEs look for funding within their personal or business network to finance their day-to-day business.

The Government of Cambodia has made efforts to de­velop an enabling policy framework for SME growth and green development. The main relevant legislation are as follows:

  • National Policy on Green Growth (2010)
  • Strategic Plan on Green Growth (2013 – 2030)
  • The SME Development Framework (2005)
  • SME Development Strategic Framework (2010–2015)
  • Industrial Development Policy (2015-2025)

 

The Climate Change Strategic Plan in Industrial and Energy aims to achieve climate change adaptation and mitigation through creating green industries. The plan promotes increasing energy efficiency, reducing pollution, and adopting cleaner technologies in the context of National Green Development.

The Strategic Plan promotes the following components in green industries: 

  • Cleaner Production (CP)
  • Environmental Management Accounting (EMA)
  • Environment Management System (EMS)
  • Corporate Social Responsibility (CSR) 

 

 

 

Particular challenges to SME financing

  • Public funding is mainly available for rural electrification and agricultural development.
  • The focus of government programmes is usually on farms and households rather than SMEs.
  • The micro finance landscape in Cambodia is well developed, however:
  • Micro finance institutions (MFIs) are of limited relevance for SMEs as credits are usually below SMEs’ capital requirements.
  • Bank loans tend to exceed financing needs of small and lower-range medium businesses, even if they are targeted at SMEs.
  • Many SME loans do not come with any considerable benefits compared to general commercial loans.

While private equity and impact investment have been growing in Cambodia, investments are still lim­ited to a small number of enterprises:

  • Enterpris­es are often run by foreigners and have a dedicated green and/or social business model.
  • Impact investors do usually not look for a conventional industrial enter­prises.
  • Other opportunities for funding, such as through the capital market and factoring, are almost non-existent. 

Other challenges

  • High collateral and interest rates
  • Banks are reluctant to lend to unregistered SMEs lacking in credit history and financial management capacities.
  • Many SMEs are not willing to become formalized as business registration comes with considerable bureaucratic and financial burden.
  • SME are not sufficiently aware of options for funding.
  • Informality and a lack of financial information hamper SMEs’ creditworthiness.
  • SMEs are not sufficiently aware of the business opportunities of green investments/ low demand from SMEs for green financing products.
  • Financing institutions usually offer short-term lending– SMEs require long-term lending.
  • A weak judicial system and legal framework makes enforcing loan agreements and liquidating collateral rather uncertain, therefore reducing investors’ moti­vation to become engaged in the SME and start-up scene. 

Main institutions providing Green Finance

  • ACLEDA Bank
  • Asia Development Bank (ADB)
  • Sumitomot Mitsui Banking Corporation
  •  Foreign Trade Bank of Cambodia
  • Prasac Micro Finance Institution
  • Sathapana Micro Finance Institution
  • Amret Bank
  • UBERIS Capital
  • ANZ Royal Bank
  • Rural Development Bank (RDB)
  • Cambodian Public Bank (Campu Bank)
  • Advanced Bank of Asia (ABA)
  • Canadia Bank
  • United Nations Capital Development Fund (UNCDF)
  • Global Agriculture & Food Security Programme (GAFSP)
  • International Finance Corporation (IFC)

 

The Rural Electrification Fund (REF) is one of the most important tools of the Cambodian government for meet­ing its rural electrification targets. It was established in 2004 with funding from the World Bank and the Global Environment Facility (GEF). The REF financially supports rural households as well as private electricity suppliers to improve electricity infrastructure in rural areas. Both renewable and non-renewable energy technologies are eligible. Funding is provided through interest-free loans, grants and loan guarantees (ADB 2015a, Electricité du Cambodge n.d.).

The National Biodigester Programme (NBP) is a joint project of the Ministry of Agriculture, Forests and Fish­eries and SNV Netherlands Development Organisation. Since its launch in 2005 the programme has been sup­porting farmers with installing biodigesters by provid­ing preferential loans and a subsidy for investment costs. Financial support is provided in cooperation with sev­eral Cambodian MFIs (NBP 2015). Even though the target group is currently limited to rural households, interviews suggested the partaking agencies want to start looking at micro and small enterprises as well. 

The first project on Reducing Greenhouse Gas Emissions through Improved Energy Efficiency in the Industrial Sector was implemented by the United Nations Indus­trial Development Organisation (UNIDO), in collabora­tion with the Ministry of Mines and Energy (MME) and the National Cleaner Production Office – Cambodia from 2011 - 2015. Its primary objective was to strengthen local capacity for improving energy efficiency in five energy-intensive sectors (food, rice and rubber processing, gar­ments, brick kilns). The project focused on specific pilot companies which they provided with technical assistance and project co-financing (ADB 2015b, NCPO-C 2013).

Technology Development Fund: the MME together with ADB launched a pilot in 2012, matching grants fund to strengthen SMEs with fewer than 100 employ­ees and less than EUR 471,000 in assets. The project is funded by an ADB grant and equipped with EUR 754,000. Eligibility for the first phase of funding was limited to food and beverage businesses to upgrade their product quality. Grants ranged from EUR 5,000 to 28,000, or up to 50% of an enterprise’s total properties. Throughout all phases, as many as 30 companies would receive the financing (ADB 2012, Phnom Penh Post 2012a).

New financing for SMEs / innovative financing mechanisms

IFC loan to Acleda Bank Cambodia promoting access to finance for SMEs:[1]

  • The project is expected to provide agricultural financing to 224,000 farmers across Cambodia and their loan portfolio of women-owned enterprises is expected to increase to EUR 681 million by 2019.
  • Funding: EUR 37.78 million from IFC and up to EUR 18.89 million  (EUR 56.67 million in total) from the Global Agriculture and Food Security Program (GAFSP). 50% of the financing is expected to be directed to women-owned SMEs.
  • In addition there is a syndicated loan of up to USD 30 million (EUR 28.3 million) from Sumitomo Mitsui Banking Corporation (SMBC), and up to USD 20 million (EUR 18.89 million) from IFC in its capacity as the implementing entity for The Managed Co-Lending Portfolio Program.

 PRASAC Microfinance Institution and Global Climate Partnership Fund (GCPF) green lending facility:[2]

  • PRASAC and the Global Climate Partnership Fund have established a USD 20 million (EUR 18 million) green lending facility to provide climate financing on energy efficiency and renewable energy.
  • Other loan focuses include energy-efficient agricultural equipment, household appliances and rooftop solar installations.
  • PRASAC and GCPF are developing tailored green lending programs for low-income household and farmers.

[1] Global Agriculture and Food Security Program. (2015). CAMBODIA: Promoting access to finance for SMEs. Retrieved from http://www.ifc.org/wps/wcm/connect/ce8ebb004a510c01bd47bf10cc70d6a1/CAMBODIA_Promoting+access+to+finance+for+SMEs++.pdf?MOD=AJPERES

[2] GCPF and Cambodia’s leading microfinance institution Prasac sign agreement for climate financing - Global Climate Partnership Fund. (2016). Gcpf.lu. Retrieved from http://www.gcpf.lu/press-release-detail/gcpf-and-cambodias-leading-microfinance-institution-prasac-sign-agreement-for-climate-financing.html

Status and policies

GHG emissions data

2015 total territorial GHG emissions[1]* (excluding land use change and forestry): 6.0 MtCO2

2015 territorial GHG emissions per capita: 0.4 tCO2/person

2014 CO2 consumption emissions:[2]13 MtCO 

*GHG territorial emissions are Carbon dioxide emissions from the use of coal, oil and gas (combustion and industrial processes), the process of gas flaring and the manufacture of cement.


[1] CO2 Emissions | Global Carbon Atlas. (2016). Globalcarbonatlas.org. Retrieved from http://www.globalcarbonatlas.org/en/CO2-emissions

[2] Carbon dioxide emissions occurring anywhere in the world attributed to the country in which goods and services are consumed. For more information see: Section 2.1.2, The global carbon budget 1959-2015, Le Quéré et al. 2016. 

GDP

2016 GDP: EUR 17.47 billion[1]

GDP composition by sector:[2]

Agriculture: 26.7%
Industry: 29.8%
Services: 43.5%

Agricultural products: rice, rubber, corn, vegetables, cashews, cassava (manioc, tapioca), silk

Industry subsector: tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles


[1] The World Factbook — Central Intelligence Agency. (2017). Cia.gov. Retrieved 1 August 2017, from https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html 

[2] Ibid 

Industries’ contribution to climate change

Many SMEs in Cambodia work with outdated and in­efficient technology and thus have negative impacts on the environment and surrounding communities. With high-energy prices in Cambodia their inefficiency also implies higher production cost. SCP can help businesses use resources more efficiently and minimize negative economic and environmental effects. 

Manufacturing industries such as garment, textile, and food processing use mostly diesel oil and other fossil fuels generators and the brick and kiln sector use wood firing as their main source of energy generation, which also contributes to deforestation.

How Sustainable Consumption and Production (SCP) can help mitigate climate change: 

  • Improve energy efficiency for energy savings and security
  • Improve resource efficiency
  • Adopt and implement cleaner technologies
  • Reduce air and water emissions  
  • Safe management of hazardous chemicals
  • Promote and train communities in community-based natural resource management to encourage sustainable management of natural resources

Climate change policies

National policies

1.     National Green Growth Roadmap 2009 
2.     The National Strategic Development Plan (NSDP) 2014-2018 
3.     The Cambodia Climate Change Strategic Plan (CCCSP) 2014-2023  
4.     Royal Government of Cambodia Climate Change Action Plan 2016 – 2018 
5.     Cambodia National Environment Strategy and Action Plan (NESAP) 2016
6.     National Strategic Plan on Green Growth 2013-2030

International mitigation targets

  • UNFCCC ratified in 1995
  • Kyoto Protocol ratified in 2005
  • Paris Agreement ratified in 2017

Cambodia’s INDC[1] to the UNFCCC 2015:

Conditional target: maximum reduction of 3,100 Gg CO2e (27%) compared to baseline emissions of 11,600 Gg CO2e by 2030. (In energy industries, manufacturing industries, transport and other sectors)

Land use, land use change, and forestry (LULUCF): Cambodia intends to undertake voluntary and conditional actions to achieve the target of increasing forest cover to 60% of national land area by 2030.

In absence of any actions the net sequestration from LULUCF is expected to reduce to 7,897,000 tonnes CO2in 2030 compared to projected sequestration of 18,492,000 tonnes CO2 in 2010.

Government financing for climate change related initiatives:

  • National Climate Change Committee
  • Cambodia Climate Change Alliance (CCCA)[2] Phase II: Supports the implementation and coordination of Cambodia’s climate change response, through a mix of technical and advisory support.

    • UNDP and Climate Change Department of the Ministry of Environment
    • Total budget: EUR 12,458,297
    • Project date: July 2014 –June 2019 (expected ending date)
    • Funding: EU, UNDP, Swedish International Development Cooperation Agency (SIDA)

 


 [1] INDCs - Intended Nationally Determined Contributions. Unfccc.int. 2017. Retrieved from unfccc.int/focus/indc_portal/items/8766.php&nbsp;

[2] UNDP. (2017). Cambodia Climate Change Alliance. UNDP in Cambodia. Retrieved from http://www.kh.undp.org/content/cambodia/en/home/operations/projects/environment_and_energy/cambodia-climate-change-alliance.html

Climate change adaptation efforts

1.     National Adaptation Plan of Action to Climate Change (2006)

2.     Cambodia Community Based Adaptation Programme (CCBAP):[1] To reduce vulnerability and increase adaptive capacity of the targeted communities to manage the additional risks of climate change. 

  • Total budget: EUR 4,254,876
  • Project date: December 2010—September 2015 (expected end date)
  • Contributing Donors: Sweden, Australia Aid, UNDP

[1] UNDP. (2017). Cambodia Community Based Adaptation Programme. UNDP in Cambodia. Retrieved from http://www.kh.undp.org/content/cambodia/en/home/operations/projects/environment_and_energy/cambodia-community-based-adaptation-programme--ccbap-.html

Climate change impacts

Cambodia lies in the Lower Mekong Basin and in the 3S River Basin and ranks as one of the most vulnerable countries to climate change (along with Bangladesh) due to their low adaptive capacity and dependence on natural resources, which are highly climate-sensitive. Cambodia has a population of 15.9 million people[1] and has experienced rapid de­velopment in the last two decades. Cambodia has put climate change mitigation and adaptation efforts as a high priority within their national development plans.

Main climate change impacts include: 

  • Floods
  • Temperature rise
  • Storms and heavy rainfall
  • Droughts
  • Windstorms
  • Seawater intrusion
  • Biodiversity loss
  • Deforestation
  • Land degradation & soil erosion
  • Health

[1] The World Factbook — Central Intelligence Agency. (2017). Cia.gov. Retrieved 1 August 2017, from https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

Economic, social and environmental risks posed by climate change

Agriculture:

  • Dependent on annual/seasonal flooding and recession of the Tonle Sap Great Lake – also effects flooded rice fields that are used for small-scale fisheries
  • Sensitive to timing and extent of rainfall – could lead to waterlogging of crops resulting in total losses
  • Severe drought in 2012 reached 11 out of the 24 provinces in Cambodia and negatively affected rice production.[1]
  • USAID estimates show that increased temperatures and increase in rainfall will negatively affect rice crops, with an estimated 3.6% decline in yields in Kampong Thom. This equates to reductions of 15,000 tons of rice in the province compared to the 2010 baseline.[2]
  • Increased risk of disease for livestock

Extreme weather events:

  • 2013 floods damage and losses totaled EUR 336.26 million, of which 144 million was the estimated value of damaged physical assets and EUR 191.7 million in estimated economic and production losses.
  • Sea level rise will cause loss of arable land and deteriorate water quality  

Fishing:

  • Subsistence fishing is important in the Tonle Sap and surrounding areas
  • Higher temperatures negatively affect fish productivity
  • Reduce water quality in aquaculture
  • Flash floods will decrease fish stocks
  • Reduced water availability for refuge ponds during the dry season 

Industry and Small and Medium-sized Enterprises (SMEs):

  • 72% of the country’s exports are from industry[3]
  • Extreme events like floods and storms damage infrastructure and facilities
  • Interruptions to business transactions
  • Transport and logistics routes are damaged or disrupted
  • Heightened price and market volatility
  • Impacts on employees and consumers – lack of access to basic goods and services
  • Lack of water and energy availability affect operations and productions
  • Health issues from heat waves and increase of disease will cause decreases in labor and work production

Tourism & Infrastructure:

  • Road and infrastructure damage
  • Irrigation damage from severe flooding

Biodiversity and forestry 

  • Degradation of protected areas from temperature increase, forest fire, drought, flood and storm.
  • More than 4 million hectares of lowland forest are water deficit and will be exposed to a greater water deficit period of between 6 to 8 months or more.[4]
  • Loss of mangrove forests and ecosystems; higher risk for coastal erosion     

Health: 

  • Increase of vector-borne diseases, water-borne, and infectious diseases
  • Malnutrition and food security hazards due to decreases in agricultural production 

[1] Kingdom of Cambodia. (2015). Cambodia’s Intended Nationally Determined Contribution.Retrieved from http://www4.unfccc.int/submissions/INDC/Published%20Documents/Cambodia/1/Cambodia's%20INDC%20to%20the%20UNFCCC.pdf

[2] USAID Mekong Adaptation and Resilience to Climate Change. (2014). Cambodia Climate Change Vulnerability Profile. Retrieved from http://www.mekongarcc.net/sites/default/files/cambodia_june2014-press-small_0.pdf

[3] Made to measure: an energy efficiency, garment industry NAMA in Cambodia. (2015). Nama news. Retrieved 15 June 2017, from http://namanews.org/news/2015/08/20/made-to-measure-an-energy-efficiency-garment-industry-nama-in-cambodia/

[4] Kingdom of Cambodia. (2015). Cambodia’s Intended Nationally Determined Contribution.Retrieved from http://www4.unfccc.int/submissions/INDC/Published%20Documents/Cambodia/1/Cambodia's%20INDC%20to%20the%20UNFCCC.pdf

International cooperation on climate change

Status: 2017. Inclusive of grants and loans; not an exhaustible list.

Partner

No. of Projects

Program /Areas of focus

Funding Amount

Duration

Funding Sources

Global Environment Facility

 

64

Biodiversity, Climate change, land degradation

€243.33

Million

 

Ongoing

GEF Trust Fund, Least Developed Countries Fund, Special Climate Change Fund

UNDP

 

2

Capacity Building in Knowledge Management for Rio Conventions

€2.16 Million

2015-2018

UNDP, GEF

Strengthening climate information and early warning systems in Cambodia

€4.63 Million

2015-2019

UNDP, Least Developed Counties Fund

World Bank

1

Mekong Integrated Water Resources Management Project- Phase III

€14.16 Million

2016-2021

 

World Bank

USAID Global Climate Change Program

Various

Adaptation, sustainable landscapes

€7.5 Million

 

USAID

Adaptation Fund

1

Enhancing Climate Resilience of Rural Communities Living in Protected Areas of Cambodia

€4.63 Million

2013-2017

Adaptation Fund

Asian Development Bank (ADB)

 

3

Integrated Urban Environmental Management in the Tonle Sap Basin Project

€4.7 Million Grant

€34.95 Million loan

2016- 2023

ADB, Strategic Climate Fund

 

Uplands Irrigation and Water Resources Management Sector Project

€56.67 Million

2016-2023

ADB

Community-Based Disaster Risk Reduction

€2.36 Million

2014-2017

Japan Fund for Poverty Reduction

 

International Climate Initiative (IKI)

1

Civil society participation and transparent structures in the post-2015 adaptation architecture

€ 1.65

Millions

2010-2017

German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)

UN REDD Program

1

Forest Carbon Partnership Facility REDD+ Readiness Project

€3.59 Million

2013-2017

Forest Carbon Partnership Facility, UN REDD, CAM REDD

Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH. (GIZ)

 

 3

Adaptation to climate change in the health sector

€6.7 Million

2012-2017

Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB)

Climate Finance Readiness Programme

 

€15.3 Million

2012-2018

Energy Efficiency and Climate Change Mitigation in the Land Transport Sector for the ASEAN - Region

€5.6 Million

2015-2019