The Garment Manufacturers Association in
Cambodia (GMAC) and partners will officially launch the green-tech clean-energy
Switch Garment project on Friday.
The project aims to increase competitiveness
and employ sustainable energy practices to curb the industry’s environmental
impact, GMAC general manager Ly Tek Heng told The Post on Tuesday.
Tek Heng, who heads the project, said GMAC will
implement it in collaboration with the Seoul-headquartered treaty-based
international organisation Global Green Growth Institute (GGGI) and French NGO
Geres-Cambodia.
He said the EU-funded SWITCH-Asia programme has
prepared a €2,995,748 budget for the project, which will run from 2020-2024.
At the launch ceremony, officials from State
energy utility Electricite du Cambodge (EdC) and the ministries of Environment;
and Industry, Science, Technology and Innovation will exchange experiences
related to sustainable energy practices in the garment industry, he said.
“We recognise the significance of the project
as it will help our association members understand how to use new technology,
use new equipment that consumes less electricity, lower costs and attain more
benefits, while considering the environmental impact as well,” Tek Heng said.
In particular, he said, the project aims to
increase investment in sustainable energy practices, such as technological
efficiency, transition to renewable energy and sound operational management in
the Kingdom’s factories.
“We will be training our members based on
concepts of energy consumption in the garment industry, as some factories do
not employ experts in the field and thus their energy use is not yet in line
with industrial technical requirements,” he said.
Victor Jona, director-general of the Ministry
of Mines and Energy’s General Department of Energy, said the ministry supports
and encourages garment factory owners to use energy efficiently and maintain
their competitiveness.
“The government’s control mechanism maintains
electricity prices and production costs low, assuring that [the industrial
sector] retains its competitive edge,” he said.
SWITCH-Asia noted that GGGI’s economic
modelling projects that a 20 per cent increase in energy efficiency in the
garment sector would lead to a 31 per cent surge in energy productivity by 2030
and $2 billion saved in energy costs.
It said: “Cambodia’s garment industry is losing
its edge compared to other countries like Bangladesh, Myanmar and Vietnam,
given its high energy costs as well as recent increase in the monthly minimum
wage, lagging infrastructure, productivity and logistics.
“The cost of electricity from the national grid
in Cambodia is the highest in ASEAN. The average energy cost per tonne of
garments is $560.
“Energy costs constitute a significant share of
the total production costs, contributing 16.7 per cent, which is also higher
than neighbouring countries.”