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Impact Assessment of Measures to Support Sustainable Energy Investment in the Garment Sector

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Impact Assessment of Measures to Support Sustainable Energy Investment in the Garment Sector
Type: Report
Year: 2021
Language: English
Country: Cambodia

The garment sector is a key industry in the Cambodian economy, accounting for USD 8.3 billion and around two thirds of exports in 2019. While it was severely affected by the COVID-19 pandemic, the latest numbers on production and estimated exports for the year 2022 indicate a strong recovery. From a long-term perspective however, merely returning to pre-pandemic production levels will be insufficient for the continued strength of the sector and its contribution to overall growth. Rather, the sector will need to catch up to the global trends shaping garment supply chains, most notably those regarding sustainability. Against that background, the EU funded SWITCH-Asia Switch Garment project is implementing a four-year project for Promotion of Sustainable Energy Practices in the Cambodian Garment Sector supporting manufacturers with the uptake of energy efficiency and renewable energy interventions to reduce environmental impact and production cost, thus enhancing competitiveness. The impact assessment of this Model Green Factory Program (MGFP) for individual factories and the sector was conducted based on a quantitative modeling approach, complemented by a qualitative analysis of the current sector positioning, its regulatory environment, and a stakeholder assessment.