KINGDOM OF CAMBODIA

Nation Religion King

􀁗􀁗􀁗􀁚􀁙􀁘􀁗􀁗

THE NATIONAL GREEN GROWTH ROADMAP

DECEMBER 2009

ACKNOWLEDGEMENTS

Working on multi‐sectoral and multi‐stakeholder levels, this National Green Growth Roadmap is very important for the implementation of the national and local sustainable development strategy and policy in all sectors in Cambodia. In kind acknowledgement, on behalf of the National Green Growth Secretariat and on my own behalf, I would like to express my profound gratitude to H.E. Dr. Mok Mareth, Senior Minister, Minister for the Environment for his commitment and continuous support, advice, direction and coordination of the preparation of the National Green Growth Roadmap.

I would like to take this opportunity to extend my special gratitude to H. E. Mr. Khong Sam Nuon, Secretary of State, Ministry of Environment and the Chair of Inter‐ministerial Green Growth Working Group (IGGWG) for his strong support and effective facilitation of the development of this Green Growth Roadmap. I would also like to sincerely thank Ms. Aneta Nikolova, Environmental Affairs Officer and Mr. Simon Hoiberg Olsen, Associate Environmental Affairs Officer from the Environment and Development Division of United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and the Regional Helpdesk on Sustainable Consumption and Production for Asia and the Pacific for providing technical advice, assistance, and substantial input to develop this Roadmap as a strategy and work programme for the formulation of national policy and action for environmentally sustainable economic growth and low‐carbon development in Cambodia.

I wish to sincerely thank the Government of the Republic of Korea for providing financial support through Korean International Cooperation Agency (KOICA) for developing this Roadmap. My Special thanks are also extended to other contributors including all stakeholders and line Ministries for their invaluable assistance in preparing this Roadmap. Moreover, my deep thanks are also extended to the Inter‐ministerial Green Growth Working Group for their kind cooperation and contribution to produce this Green Growth Roadmap.

GREEN GROWTH INTER_MINISTERIAL WORKING GROUP

1. Ministry of Environment (MoE)

‐ H.E. Mr. Khong Sam Nuon, Secretary of State and the Chair of Inter‐ministerial Green Growth

Working Group

‐ Mr. Koch Savath, Deputy Director General, and Director of Green Growth Secretariat

‐ Dr. Chrin Sokha, Technical Deputy Director General

‐ Dr. Oum Pisey, Technical Deputy Director General

‐ Mr. Choun Chanrithy, Director of Department of Natural Resource Assessment and Data

Management

‐ Mr. Chea Sina, Deputy Director of Department of Pollution Control

‐ Mr. Yin Samray, Deputy Director of Department of Planning and Legal Affairs

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2. Ministry of Agriculture Forestry and Fisheries (MAFF)

‐ H.E. Mr. Ung Sam Ath, Deputy Director General, Forestry Administration and Member of Social‐

Economic and Cultural Council

3. Ministry of Industry, Mines and Energy (MIME)

‐ Dr. Tung Ciny, Deputy Director General for Industry

‐ Mr. Ven Keahak, Deputy Director Department of Industrial Techniques

4. Ministry of Planning (MoP)

‐ H.E. Mr. Mam Marady, Advisor and Director of General Planning Department

5. Ministry of Land Management, Urban Planning and Construction (MLMUPC)

‐ Dr. Meng Bunnarith, Director of Department of Land Management

6. Ministry of Public Works and Transport (MPWT)

‐ Mr. Soeung Sokong, Director of Planning Department

7. Ministry of Health (MoH)

‐ Ms. Prak Piseth Raingsey, Director of Preventive Medicine Department

8. Ministry of Education, Youth and Sports (MoEYS)

‐ Mr. Sun Bunna, Deputy Director of Study Programme Development Department

9. Ministry of Women Affairs (MWA)

‐ Ms. Te Vouchlim, Deputy Director of Planning and Statistics Department

‐ Mr. Tim Phyiary, Deputy Director of International Cooperation Department

10. Ministry of Labour and Vocational Training (MLVT)

‐ Ms. Kimleang Youk, Deputy Director of Planning, Statistics and Legislation

‐ Ms. Chum Kalin, Deputy Director of Planning, Statistics and Legislation

11. Ministry of Tourism (MoT)

‐ Mr. Bou Chan Serey, Deputy Director of Planning and Development Department

12. Ministry of Rural Development (MRD)

‐ Mr. Srun Pithou, Deputy Director of Department of Planning and Public Relation,

13. Ministry of Interior (MoI)

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‐ Dr. Sok Chamroeun, Deputy Director of Department of Local Administration

14. Ministry of Water Resources and Meteorology (MOWRAM)

‐ Mr. Men Mlobbonn, Deputy Director of Department of Farmer Water User Community

15. Ministry of Commerce (MoC)

‐ Mr. Kong Keomuny, Deputy Director of Multilateral Trade Department

16. Ministry of Economy and Finance (MEF)

‐ Mr. You Phirum, Deputy Director of Investment and Cooperation Department

17. Cambodia’s Chamber of Commerce (CoCC)

‐ H.E Mr. Nhunp Meng Tech, General Director

18. Phnom Penh Municipality

‐ H.E. Mr. Man Choeurn, Vice Governor

19. Phnom Penh Environmental Department

‐ Mr. Chiek Ang, Director

20. Dr. Tin Ponlok, National Project Coordinator for 2nd National Communication Project

Furthermore, I would like to extend my profound thanks to other contributors include: Ms. Sok Sotheavy, Admin‐Supervisor (CoCC); Ms. Kimsuor Sothira, Deputy Chief of Bilateral Cooperation Division (MEF); Mr. Yin Yanno, Chief of Cambodia’s WTO Office (MoC); Mr. Chong Bou, Chief of Industrial Safety Office, Department of Industrial Techniques (MIME); Mr. Noun Rotha, Inspector of General Inspection (MoE); Mr. Chrieng Phollak, Chief of Administration and Public Relation Office (MPWT); Mr. Chea Sengyi, Vice Chief, Office for Bi‐lateral Cooperation (MEF); and Mr. Chin Sothun, Vice Chief Office for Solid Waste Management; Department of Pollution Control (MoE) for their contributions to developing this roadmap. Finally, I also wish to thank Mr. Hak Mao, National Consultant, Mr. Nikolai Sermine, Senior Adviser, Environmental Technology & Services, International Trade Centre, Dr. David Ness, Adjunct Senior Research Fellow, University of South Australia, and Mr. Nigel Stedman, Director of Business Consulting International for assisting to develop this roadmap.

Phnom Penh Date…………………………………….. 2009

Mr. Koch Savath

Deputy Technical Director General,

Ministry of Environment,

Director, Green Growth Secretariat

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PREFACE

As we are aware of, Cambodia like the global community, is becoming increasingly aware that climate change is caused by intensive human industrial activities. It impacts not only our present generation but also the people in future generations who will need to adapt and mitigate the effects of a volatile climate. Recognizing the multitude of impacts of climate change on social and economic development, as well as environment and livelihoods of the people and in dealing with this inevitable consequences, the Ministry of Environment (MoE) has worked hard with other Governmental ministries and agencies, the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), International Organizations (IOs), Non Governmental Organizations (NGOs), Donors and Development Partners (DPs) to formulate a National Green Growth Roadmap that can provide a supporting framework for environmentally sustainable and socially inclusive development and growth in Cambodia.

Meanwhile, the vision on “Low‐carbon Green Growth” shall serve as a guiding principle to turn the challenges of today into opportunities so that our country can make headway towards sustainable development. Therefore, I strongly believe that this Roadmap will serve as means to strengthen environmental cooperation not only in this country but also on a global scale to result in better environmental policy through the exchange of ideas and experiences. Meanwhile, the implementation of the National Green Growth Roadmap will significantly contribute to the achievement of the Cambodia Millennium Development Goals (CMDGs) and National Sustainable Development Objectives of the National Strategic Development Plan (NSDP) and the Rectangular Strategy, (RS) as articulated by the RGC.

First of all, I would like to take this opportunity to convey my sincere gratitude to Samdech Akka Moha Sena Padei Techo Hun Sen, the Prime Minister of the Royal Government of Cambodia who always provides committed leadership and policy guidance to ensure prosperous national growth which integrates environment sustainability on the national development agenda to conserve the environment, reduce poverty, and increase job opportunities and his holistic envisagement on the environment and support for the development of the Green Growth Roadmap and the future implementation in Cambodia. I am deeply indebted to UNESCAP for providing technical guidance and assistance to develop this Roadmap. I would also like to sincerely thank the Government of the Republic of Korea for providing financial support through Korean International Cooperation Agency (KOICA). I also very much appreciate H.E. Mr. Khong Sam Nuon, Secretary of State and the Chair of Inter‐ministerial Green Growth Working Group (IGGWG) for providing strong support and consideration of the development of this Roadmap. I also wish to thank Mr. Koch Savath, Deputy Director General and Director of Green Growth Secretariat, Ministry of Environment for strongly‐committed effort to coordinate to develop this Green Growth Roadmap. Moreover, I would like to thank all those who have contributed to developing the National Green Growth Roadmap for their dedication and hard work. Finally, I would like to assure our commitment to the successful implementation of the Cambodian Green Growth Roadmap.

Phnom Penh Date:…….………..………………………..2009

H.E. Dr. Mok Mareth,

Senior Minister, Minister for the Environment

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TABLE OF CONTENTS

THE NATIONAL GREEN GROWTH ROADMAP..................................................................................................0

ACKNOWLEDGEMENTS………………………………………………………………………………………………………………………………1

PREFACE.........................................................................................................................................................5

TABLE OF CONTENTS………………………………………………………………………………………………………………………………….6

ABBREVIATIONS.............................................................................................................................................9

SUMMARY FOR DECISION MAKERS..............................................................................................................11

DEFINING GREEN GROWTH.................................................................................................................11

IDENTIFYING THE NEEDS......................................................................................................................11

THE HOLISTIC APPROACH....................................................................................................................12

THE ROADMAP...................................................................................................................................12

RECOMMENDATIONS........................................................................................................................13

I. INTRODUCTION.......................................................................................................................................14

1.1 CURRENT ECONOMIC CONDITION.................................................................................................15

1.2 NATIONAL STRATEGIC DEVELOPMENT PLAN (NSDP) 2006‐2010..................................................15

1.3 THE RECTANGULAR STRATEGY (RS)...............................................................................................16

II.OVERVIEW OF THE GREEN GROWTH ROADMAP......................................................................................18

2.1 VISION: PROSPERITY AND SUSTAINABLE LIVELIHOODS.................................................................18

2.2. GOAL: GREENING OF ECONOMIC DEVELOPMENT........................................................................18

2.3 OBJECTIVES..................................................................................................................................18

III. THREATS................................................................................................................................................19

3.1 POPULATION GROWTH..................................................................................................................19

3.2 POVERTY STATUS.........................................................................................................................19

3.3 LEGAL AND POLICY FRAMEWORK:.................................................................................................20

3.4 ENVIRONMENTAL PRESSURES:......................................................................................................20

3.5 OPPORTUNITIES:..........................................................................................................................21

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3.6 DRIVERS OF GREEN GROWTH........................................................................................................21

IV. PATHS TO GREENING THE ECONOMIC DEVELOPMENT..........................................................................22

4.1 SHORT‐TERM INTERVENTIONS (2‐5 YEARS).............................................................................................22

4.2 MEDIUM‐TERM INTERVENTIONS (5‐10 YEARS).......................................................................................22

1) ECO‐VILLAGE..................................................................................................................................23

2) SUSTAINABILITY OF WATER RESOURCES.........................................................................................25

3) SUSTAINABILITY OF AGRICULTURE, ENERGY AND FORESTS............................................................27

4) SUSTAINABILITY OF WASTE MANAGEMENT....................................................................................29

5) SUSTAINABILITY OF TRANSPORTATION...........................................................................................31

4.3 LONG‐TERM INTERVENTIONS (10‐20 YEARS)..........................................................................................32

4.3.1 FISCAL INITIATIVES....................................................................................................................32

4.3.2 ECOLOGICAL AGRICULTURE .......................................................................................................33

4.3.3 INFRASTRUCTURE AND TRADE IMPROVEMENT.........................................................................33

4.3.4 SUSTAINABLE ENERGY................................................................................................................34

4.3.4 EDUCATION DEVELOPMENT.......................................................................................................35

4.3.5 HEALTH IMPROVEMENT.............................................................................................................35

4.3.6 INTEGRATING GENDER EQUITY INTO GREEN GROWTH.............................................................36

4.3.7 LAND USE AND ECOLOGICALLY SOUND AND HEALTHY URBAN ENVIRONMENT........................36

4.3.8 GREENING THE ECONOMY..........................................................................................................36

4.3.9 DECENTRALIZATION AND DECONCENTRATION REFORM...........................................................38

V. IMPLEMENTATION MECHANISM FOR GREEN GROWTH..........................................................................39

5.1 ENABLING ENVIRONMENT FOR THE NATIONAL ROADMAP..........................................................39

5. 2 STAKEHOLDER COLLABORATION..................................................................................................39

5.3 COORDINATING GREENING OF GROWTH BY USING THE ISA FRAMEWORK.................................38

5.3.1 SCOPING STAGE:......................................................................................................................39

5.3.2 ENVISIONING STAGE:...............................................................................................................41

5.3.3 EXPERIMENTAL STAGE:............................................................................................................41

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5.3.4 LEARNING STAGE:....................................................................................................................41

5.3.5 FUTURE IMPLEMENTATION FRAMEWORK OF THE GREEN GORWTH ROADMAP…………………..43

VI. CONCLUSION AND RECOMMENDATIONS:............................................................................................455

VII. REFERENCES.......................................................................................................................................477

VIII. ANNEXES...........................................................................................................................................499

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ABBREVIATIONS

ADB Asian Development Bank

AIDs Acquired Immune Deficiency Syndrome

A/R‐CDM Afforestation and Reforestation for Clean Development Mechanism

CCoC Cambodia’s Chamber of Commerce

DANIDA Danish International Development Agency

D & D Decentralization and Deconcentration

DPs Development Partners

EDP Economic Development Plan

ESTs Environmental Sound Technologies

GDP Gross Domestic Product

GMS Greater Mekong Sub‐region

GMOs Genetically Modified Organisms

GTBR Green Tax and Budget Reform

HSP Health Strategy Plan

IOs International Organizations

ISA Integrated Sustainability Assessment

KOICA Korea International Cooperation Agency

MATISSE Methods and Tools for Integrated Sustainability Assessment

MAFF Ministry of Agriculture, Forestry and Fisheries

MIME Ministry of Industry, Mines and Energy

MLMUPC Ministry of Land Management, Urban Planning and Construction

MoI Ministry of Interior

MLVT Ministry of Labor and Vocational Training

MoT Ministry of Tourism

MWA Ministry of Women’s Affairs

MoC Ministry of Commerce

MoE Ministry of Environment

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MEF Ministry of Economy and Finance

MoP Ministry of Planning

MoEYS Ministry of Education, Youth and Sports

MoWRAM Ministry of Water Resources and Meteorology

MPWT Ministry of Public Works and Transport

MRD Ministry of Rural Development

MoRCs Ministry of Religions and Cults

MTDP Mekong Tourism Development Project

NAPA National Adaptation Programme of Action

NCDD National Committee for the Management of the Decentralization and Deconcentration

NGOs Non‐Governmental Organizations

NIS National Institute of Statistics

NSDP National Strategic Development Plan

PCBs Printed Circuit Boards

PDoE Provincial Department of Environment

PFM Public Financial Management

POPs Persistent Organic Pollutants

PIPs Public Investment Programmes

PPP Private Public Partnership

REDD Reducing Emission from Deforestation and Forest Degradation

RGC Royal Government of Cambodia

3Rs Reduce Reuse Recycle

RS Rectangular Strategy

SLA Sustainable Livelihoods Approach

SMEs Small and Medium Enterprises

TVET Technical and Vocational Education and Training

UNESCAP United Nations for Economic and Social Commission for Asia and the Pacific

UXO Unexploded Ordnance

WTO World Trade Organization

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SUMMARY FOR DECISION MAKERS

The National Green Growth Roadmap is produced by Cambodia for furthering development to benefit the people and conserve and restore the natural capital base to continue economic growth within the limits posed by the environmental carrying capacity.

The Roadmap has been produced though repeated consultations and interviews with all involved Line Ministries. In addition, discussions at three Inter‐ministerial Green Growth Working Group (IGGWG) Meetings held in Phnom Penh throughout 2009 have contributed substantially to the contents and structure of this Roadmap. Comments and input were collected and synthesized into this document. It lays out ideas for increased multi‐stakeholder collaboration in the design and implementation of projects and programmes that can further inclusive and sustainable development in Cambodia. This kind of development aims at improving resilience to adverse impacts, whilst choosing low‐carbon options for “green growth” to mitigate and adapt to a changing climate.

DEFINING GREEN GROWTH

Green Growth is defined by ESCAP as a policy focus for Asia and the Pacific that emphasizes ecologically sustainable economic progress to foster low‐carbon, socially inclusive development. In efforts to design a coordinated, regional response, government policymakers convened at the 5th Ministerial Conference in Seoul, Republic of Korea, in 2005. At that time, green growth was adopted by 52 Member States of the United Nations Economic and Social Commission of Asia and the Pacific (UN ESCAP) as a common path for achieving environmentally sustainable economic growth.

In light of this, the National Green Growth Roadmap proposes possible paths for short, medium, and long‐term implementation of green growth in Cambodia. In doing so, it suggests win‐win‐win situations between economy, environment and society to show that economic growth, environmental sustainability and human well‐being can be achieved. Adopting a holistic approach to development will help the country improve resilience and decrease vulnerability to climate change. Based largely on ESCAP’s holistic Green Growth Approach, the Roadmap is drafted with the conviction that the economy, the environment and society are not mutually exclusive but rather interdependent, deeply intertwined and integral components of each other.

IDENTIFYING THE NEEDS

Despite having made remarkable progress, Cambodia’s development has been tested on multiple fronts: erratic price fluctuations of natural resources, food/fuel/financial crisis, depleting ecosystems, water scarcities, and increased climate vulnerability. These challenges have diminished progress made towards the Cambodia Millennium Development Goals (CMDGs). Poverty and near‐poverty remain high, and other human development indicators continue to reflect difficult living conditions, especially in rural areas, where the vast majority of Cambodians live and work, largely at a subsistence level. Most of the high growth over the past decade has been urban‐based and narrowly focused on surging garment exports that may be vulnerable, record levels of tourism and a boom in the construction industry. Similarly, the base of major beneficiaries of development over the past decade also has increasingly narrowed. It is with these challenges in mind that the Roadmap focuses on identifying and describing interventions that can improve quality of life by focusing on increasing access to basic goods and services.

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The National Green Growth Roadmap will focus on addressing seven “A”’s:

Access to clean water and sanitation;

Access to renewable energy;

Access to information and knowledge;

Access to means for better mobility;

Access to finance and investments;

Access to food security (agriculture) and non‐chemical products; and

Access to sustainable land‐use.

These needs for access will be addressed through green economic growth projects and programmes, including eco‐efficient and resource efficient innovations, which can create opportunities and new "green jobs". While an instant paradigm shift towards green growth is not to be expected, an increased focus on access and on the implementation of ESCAP’s proposed Green Growth policies will gradually bring about an economic growth model that is more conducive for human development, resilience, and environmental sustainability than the current business‐as‐usual approach.

THE HOLISTIC APPROACH

Current environmental and social issues are cross‐cutting and deserve multi‐sectoral cooperation. In addressing these challenges on a cross stakeholder level, the RGC has the opportunity to positively influence economic growth towards environmental sustainability, poverty reduction, and livelihood improvement. To this end, the IGGWG proposes several interventions over the short, medium, and long‐terms. However, since the project ideas articulated in this document depend on funding and support from the donor community, it is crucial that the ministries create work plans in order to show strong commitment to the roadmap. National Green Growth Roadmap means growing Cambodia in a way to be efficient, with less resources and waste; to be clean, without polluting the environment; and to be green, with preserving greenery, waterways and the natural heritages. The RGC wants to develop its society in a sustainable way so that its future generations can enjoy both economic growth and a good living environment.

THE ROADMAP

The roadmap begins by proposing a number of interventions to aid the mainstreaming of Green Growth concerns into overall development framework of Cambodia. Such interventions will enhance inter‐ministerial and multi‐stakeholder cooperation.

If implemented, the suggested interventions from this Roadmap will, in the short term (2‐5 Years), make a major contribution to stimulating the economy, saving and creating jobs, and protecting vulnerable groups and improve environmental sustainability. In summary the proposed stakeholders to:

A. Create a National Ministerial Green Growth Council;

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B. Create a national public awareness and consultation process, amongst others by disseminating educational and information materials;

C. Integrate the eco‐village/eco‐city initiatives into national strategic development plan;

D. Develop national strategy for Greening industries: based on resource efficiency and 3R strategies;

E. Develop stimulus measures for promotion of sustainable agriculture including index‐based insurance schemes and/or micro‐financing; and

F. Develop a scheme for innovative investments (can carry on through‐out medium and long terms).

G. Develop measures to strengthen the national environmental industry sector

In the medium‐term (5‐10 years), project ideas focus on sustainable rural development – in line with Cambodia’s decentralization and deconcentration (D&D) strategy; interventions to further sustainable development in sectors of agriculture, energy, forestry and water, waste management, and transportation. For the long term (10‐20 years) the suggested interventions will further promote sustainable and inclusive growth and the achievement of the CMDGs for economic development and social and environmental stability. In addition, it is important that interventions in the long‐term continue to enhance the viability of medium‐term interventions, for instance by implementing regulations and fiscal policy tools to create incentives for green growth. This will create coherence in the development trajectory and contribute to the reduction of Cambodia’s carbon dependency and ecosystem degradation. Greener and smarter development will thus improve health and overall quality of life of the people.

RECOMMENDATIONS

The RGC should actively involve private enterprises in greening the development of the private sector and mainstream the Green Growth initiatives through 1) overall awareness raising, 2) sector specific capacity development to increase eco‐efficiency of production and consumption, 3) inclusion of Green Growth into Cambodian National Sustainable Development Strategy, and 4) incremental implementation of Green Growth policy tools to drive towards a sectoral greening of economic activity. Finally the participation of the Ministry of Interior is recommendable for successful implementation of Green Growth on provincial levels, involving and empowering ministerial departments to ensure that green economic growth projects are effectively mainstreamed into development planning.

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I. INTRODUCTION

Cambodia is an agricultural country. Currently, 80.25% of Cambodians live in rural areas with agriculture as their primarily livelihood, including farming, fishing, raising live‐stock, harvesting forest and non‐forest products (RGC, 2008a). Cambodia has achieved remarkable progress over the past decades in a number of areas important to human development. Access to education and health services has improved, poverty has steadily declined, and further moderate progress has been made to meet Cambodia Millennium Development Goals (CMDGs). Nevertheless, modest progress in human development still reflects the difficulty for living conditions of Cambodians, especially in rural areas where the vast majority of people lives and works largely at a subsistence level. Most of the high growth over the past decade has been urban‐based and narrowly focused on surging garment exports that may be vulnerable, record levels of tourism and a boom in the construction industry (UNDP, 2007).

The Government’s Rectangular Strategy, Phase II, and the National Strategic Development Plan, (NSDP) provide a broad roadmap towards improved governance, increased public investments in rural areas, and support to the development of a job‐creating private sector. Meanwhile, in developing its most recent NSDP, the Royal Government of Cambodia (RGC) has decided to move away from the traditional, comprehensive planning approach to one that focuses on strategic goals and actions. The RGC is therefore declaring the most recent NSDP as the single, overarching, guiding and reference document for pursuing prioritized goals, targets and actions. Given the still‐weak institutional capacities, implementation efforts will best be prioritized and targeted at areas offering the highest returns for improving human well‐being, achieving shared prosperity and securing longer‐term peace and stability. Agriculture, infrastructure, urban development, employment and development of human resources are the priority sectors identified in the strategy.

Creating socio‐economic opportunities in these sectors must be done in a way that avoids further harm and degradation of the environment. The rapid economic and population growth coupled with overall climate change impacts has had massive negative effects on both environment and human health. It is now necessary to mainstream green growth policies into the national development strategy together with enhancing knowledge and skills of policy and decision makers to successfully mainstream important policy measures and tools for enhancing the quality of growth in Cambodia. In addition, the recent economic crisis has required economic stimulus packages to sustain economic growth in uncertain times. In planning and disbursement of such stimulus, the RGC can choose responses and investments that can yield economic growth and development that is both socially inclusive and environmentally sustainable in the medium and long terms.

The Ministry of Environment (MoE) has developed the Green Growth Roadmap to integrate ideas and projects on green growth into national strategic development. This roadmap will create the basis for environmentally sound economic development through promotion of sustainable consumption and production, greening the market and green business, development of sustainable infrastructure, green tax and budget reform, and monitoring eco‐efficiency indicators. The roadmap also aims to align all relevant Ministries, institutions, NGOs, IOs, DPs and Academia to cooperate in addressing current challenges to sustainable development.

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1.1 CURRENT ECONOMIC CONDITION

Currently, Cambodia’s economic base is shifting away from the agriculture, forestry and fisheries sector (accounting for around 31.4% of Gross Domestic Product (GDP)) to the industrial sector accounting for around 27% of GDP (MoP, 2008). The services sector (with significant increases in tourism, real estate and other services) is one of the largest sectors in the economic development accounting for 36% of GDP and is largely driven by the tourism industry (CDRI, 2008). However, it is also reported that agriculture is still important in rural areas, where most of people depends on paddy cultivation for subsistence.

It was reported that the inflation rate reached its peak of 25.72% during the second quarter of 2008 resulting from the high oil price, the food price soaring, and the fluctuation of US dollar (MoP, 2008). It was contained to 13.46% by the end of the year. It was expected to reduce further to a single digit in 2009 (MoP, 2008). Per capita GDP rose from 1.86 million Riels1 in 2005 to 2.42 million Riels in 2007 and is expected to rise to 3.50 million Riels. However, there has been a significant increase in consumer prices over 2008, due mainly to significantly higher increases in the Consumer Price Indices (CPI) for foods, international oil prices, and other factors. In addition, in the most recent past, Cambodia has had to struggle with Bird Flu, and HIV, but most recently incidents seems to have stabilized somewhat. There has been a significant increase in the number of foreign tourists putting existing infrastructure under considerable strain. The recent spread of pan‐epidemic disease of swine flu combined with the global financial crisis has adversely impacted the Cambodian economy and delayed implementation of national policies.

In general, the economic growth is driven by the four pillars: agriculture, garment, tourism and construction. Despite the global downturn, the Cambodian economy remains in good shape (MoEF, 2007) underpinned by a continued increase in investment in agriculture, broadly based development of non‐agriculture sectors, political stability, active private sector participation, reform efforts, increased official development aid and sustained foreign direct investment. Meanwhile, in terms of environment and natural resources, it is evident that the economic growth has come at a cost of extensive over‐exploitation of Cambodia's fisheries and forests over the last decades. Furthermore, irrigation systems in the country are still limited with approximately 80% of agriculture being rainfall dependent (MoEF, 2007).

The RGC Rectangular Strategy, phase II; the National Poverty Reduction Strategy (NPRS) and National Strategic Development Plan (NSDP) builds upon a policy stance of economic growth and poverty reduction. The reform agenda of the RGC essentially focuses on a deepening of economic reforms and macroeconomic stability, including fiscal and monetary reform, trade and investment promotion, administrative reforms, military demobilization, and improved forestry and fisheries management.

1.2 NATIONAL STRATEGIC DEVELOPMENT PLAN (NSDP) 2006‐2010

The National Strategic Development Plan (NSDP) 2006‐2010 aims to ensure that land and natural resources are used in an efficient manner to support sustainable and equitable socio‐economic development for all Cambodian citizens. It is an important document of the RGC, which provided details

1 According to current exchange rate on the market 1USD= 4200 Riels (September 2009).

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on specific actions, programs, and projects to be carried out by Line Ministries and Agencies to achieve the national prioritized goals.

The NSDP synthesizes goals and targets contained in the Second Five‐Year Socio‐Economic Development Plan for 2001‐2005, the National Poverty Reduction Strategy for 2003‐2005 and the Cambodian Millennium Development Goals. Government ministries and agencies, donors and civil society organizations were involved in the formulation of the NSDP and in the drafting of this National Green growth Roadmap to ensure convergence and synchronicity of efforts.

Currently, RGC has prepared the National Strategic Development Plan Update 2009‐2013 (NSDP Update, 2009‐2013) to provide details on specific actions, programs, and projects to be carried out by Line Ministries and Agencies to achieve national prioritized goals as stated in the Rectangular Strategy ‐ phase II. The NSDP Update (2009‐2013) articulates two primary goals. First, the reason for preparing this plan is the need for the synchronization of the period covered by the NSDP with the term of the fourth legislature of the Royal Government. Second, the preparation of this document is intended to update the NSDP (2006‐2010) by taking into account the potential impact of the global economic downturn on Cambodia’s economy.

1.3 THE RECTANGULAR STRATEGY (RS)

The Rectangular Strategy (RS) for growth, employment, equity and efficiency is a holistic and integrated document proclaimed by RGC during the early part of its third mandate in 2004. It has been reaffirmed for the fourth term (2008‐2013). The RGC has considered the Rectangular Strategy, Phase II (RS‐II) as its “socio‐economic policy agenda”. It is still relevant in the fourth mandate in which in the paragraph (40) states that “in order to ensure sustainable economic growth, which is sine qua non for employment creation and income generation, the RGC will continue to foster the diversification and strengthen the competitiveness of the Cambodia’s economy by assuring a highly conducive climate for both public and private (domestic and foreign) investments for the development of the following important sectors: (1) Agriculture; (2) Water and Irrigation Systems; (3) Transport Infrastructure; (4) Electricity; (5) Human Resource Development; (6) Labor‐Intensive Industry and Food Processing Industry for Exports; (7) Tourism; (8) Exploitation of Oil, Natural Gas and other Minerals; (9) Information and Communication Technology; and (10) Trade” (RGC, 2008). In line with these priority sectors, the Roadmap focuses on all the sectors that are conducive for economic growth and environmental sustainability.

Moreover, the RGC set out the RS as a supporting tool to implement its political platform in the third legislature of the National Assembly and continue to the second phase to attain poverty reduction, development, progress, prosperity, national harmony and happiness of the Cambodian people. The RS is an integrated structure of interlocking Rectangles (see below).

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II.OVERVIEW OF THE GREEN GROWTH ROADMAP

2.1 VISION: PROSPERITY AND SUSTAINABLE LIVELIHOODS

The National Green Growth Roadmap envisions a combination of objectives for economic growth and development, human well‐being, and environmental quality, which will promote the improvement of Cambodian livelihoods. Similar to how economic growth is a precondition for human development, environmental sustainability is integral to both economic growth and the well‐being of the Cambodian nation as a whole. The overall vision of National Green Growth Roadmap is to make Cambodia a liveable and lively country so that Cambodians love and are proud to call home.

In light of this, the National Green Growth Roadmap proposes a number of possibilities for win‐win‐win situations between economy, environment and society to show that rapid economic growth, environmental sustainability and human well‐being can be achieved without long‐term trade‐offs. Based largely on ESCAP’s holistic Green Growth Approach, the Roadmap is drafted with the conviction that the economy, the environment and society are not mutually exclusive but rather interdependent, deeply intertwined and integral components of each other.

2.2. GOAL: GREENING OF ECONOMIC DEVELOPMENT

Overall, Green Growth initiatives can foster sustainability of economic growth by enhancing sustainable consumption and production, by greening markets and businesses, by creating favorable climate for the establishment of sustainable infrastructure that in turn can enable the population to enjoy increased access to crucial goods and services and to ensure equal access to resources for both women and men. The incremental implementation of fiscal policy instruments such as a green tax and budget reform can send strong pricing signals and act as a powerful driver for increasing the overall eco‐efficiency of economic growth in Cambodia.

2.3 OBJECTIVES

This Roadmap combines the overall objectives of pre‐existing development strategies with the establishment and maintenance of Green Growth, defined as environmentally sustainable economic progress that fosters low‐carbon, socially inclusive development. In Cambodia, Green Growth aims to unify development and environment objectives by means of implementing policies tailored to address the needs of all, including the most disadvantaged, to create jobs, to increase the resilience of the environment and of the population to adverse impacts, thus sustaining economic growth and human and environmental well‐being in the long term. This roadmap is also intended to promote women’s status for the realization of a gender‐equal society.

The National Green Growth Roadmap will focus on addressing seven “A”’s:

Access to clean water and sanitation;

Access to renewable energy;

Access to information and knowledge;

Access to means for better mobility; 19 | P a g e

Access to finance and investments;

Access to food security (agriculture) and non‐chemical products; and

Access to sustainable land‐use.

These needs for access will be addressed through green economic growth projects and programmes, low carbon solutions, including eco‐efficient/resource efficient innovations, which can create new "green jobs" for the population. While an instant paradigm shift towards Green Growth is not to be expected, an increased focus on access and on the implementation of Green Growth policies, will gradually lead the country towards an economic growth model that is more conducive for human development and for environmental sustainability than the current business‐as‐usual approach.

III. THREATS

3.1 POPULATION GROWTH

The relationship between population growth and economic development has been extensively studied. Some studies stressed that population growth may have a beneficial, neutral or detrimental effect on economic growth depending on the socio‐economic characteristics of a country (MoP, 2008). However, it is clarified that rapid population growth has had a negative effect on economic growth resulting from the large existing deficiencies in infrastructure, limited productive capacity, un‐employment and under‐employment, as well as poor provision of health and education services (MoP, 2008). Meanwhile, the Government recognizes that a continuing high growth rate of population creates serious difficulties in the implementation of its programme for poverty alleviation and sustainable economic development. A large population means larger requirements in terms of food and public services such as education and health care.

Rapid urban growth aggravates environmental degradation. In addition, the rapid population growth is one factor that could be viewed as an obstacle to green growth. The challenge will therefore be to create sufficient employment possibilities in the private sector to embrace a very young population, with more than half of citizens currently less than 21 years of age (CIA, 2009). However, despite the difficulties in initial investments into health services, education, and infrastructure, the Government also realizes that investments into human capital is one of the most important pre‐conditions for sustained economic growth and must be invested in, along with other parts of the economy. Training for green and decent jobs that can improve livelihoods of the people whilst positively contributing to the restoration and/or maintenance of the environment can therefore be seen as an opportunity to enhance the greening of Cambodian economy and to improve the stock of human capital in Cambodia.

3.2 POVERTY STATUS

Poverty was identified as the biggest challenge to Cambodian society. Among the population of 13.04 million in 2004, the total number of people below the food poverty line is 2.6 million and the number below the total poverty line is 4.7 million (MoP, 2008). In light of the significance of poverty, more pressure is exerted on the natural resources, which poses a great challenge for the streamlining of the green growth concept into the national development plan. Before the people consider the environment, they need to first consider their livelihoods. However, the government has a very central role to play in facilitating interventions that can address both poverty and environment 20 | P a g e

2 However, the government has strongly committed to maintaining 60% of the total forest cover by 2015.

simultaneously. This fact makes a statement about the importance of rural development and it is therefore implicit that the projects in this Roadmap must further development to alleviate the prevalent poverty in the country.

rural3.3 LEGAL AND POLICY FRAMEWORK:

Cambodia has limited regulations and trained personnel to effectively monitor implementation of sustainable development activities. There are many laws and regulations developed but no specific law or policy on green growth, and the dissemination of these laws to the people is still rather limited. Therefore, existing legislation related to sustainable development needs to be reviewed and strengthened in order to reach green development approaches. Furthermore, there is still limited understanding of the green growth policy tools from the stakeholders. However, the Ministry of Environment has a “core” set of responsibilities that must be implemented as part of the governmental mandate in order to mainstream the concept into legal and policy framework.

3.4 ENVIRONMENTAL PRESSURES:

Over the last two decades, Cambodia has experienced rapid economic growth resulting in significant poverty reduction. However, the convergence of the recent economic crisis with region‐wide food/fuel supply bottlenecks and climate change variability demonstrates that these gains have been made largely at the expense of the environment. Indeed, deforestation is the most serious threat to Cambodia's environment. Cambodia’s forests were disappearing at a rapid rate (one of the highest in the world), forest cover having fallen from 73% in 1965 to less than 50% in recent years (CDRI, 2008). It is noted that there are multiple negative effects of such significant deforestation including impacts on biodiversity, water retention and increased soil erosion of deforested lands. The loss of forest not only results in the loss of habitats for many species of animals and plants, but the loss of carbon sinks contributes indirectly to growing CO2 emissions (CDRI, 2008).2

Another environmental pressure is solid waste disposal. It is a major environmental problem, especially in the provinces (M. Sidet, 2008). However, MoE has delegated powers to the Provincial Department of Environment (PDoE) to manage waste in their constituencies. In addition, MoE has issued a general guideline on disposal, collection, transport, storage, recycling, minimization, and dumping of household waste on provincial levels.

Meanwhile, Phnom Penh Municipality has articulated a clear development strategy for waste management by considering water, land and air sectors as main concerns. The municipality has promoted clean water supply; built physical infrastructure (such as sewage and drainage systems); built flood prevention banks; replaced existing dumping sites to new and larger ones with better facilities; promoted public transportation and improved the standard of sidewalks in the city.

The discharge of wastewater into the river systems especially for provinces located along the Mekong River and the Tonle Sap Lake and its main tributaries is another concern (M. Sidet, 2008). There is also no proper management plan 21 | P a g e

for the collection, storage, treatment and discharge of wastewater. Land encroachment, deforestation and economic use of natural resources in protected areas has increased, resulting in environmental concerns (M. Sidet, 2008). In addition, there are other environmental concerns deriving from mineral exploration activities and hydropower dam development projects..

3.5 OPPORTUNITIES:

In consultation with government representatives during Inter‐ministerial Green Growth Working Group (IGGWG) meetings, it was agreed among stakeholders that it is crucial to create an enabling environment for green investment in order to stimulate domestic economy and foster new green job growth. The government should actively involve private enterprises in greening the development of the private sector. Green activities should be promoted in this sector by 1) awareness raising; 2) sector specific capacity development to increase eco‐efficiency of production and consumption (it should involve institutions, ministries, NGOs and academia to mainstream the Green Growth concept); 3) inclusion of Green Growth into National Strategic Development Plan; and 4) incremental implementation of Green Growth policy tools to create financial incentives for sectoral greening of the private sector.

Environmental and social issues are cross‐cutting and therefore deserve multi‐sectoral cooperation. By working together across ministries, the RGC has the opportunity to address environmental and developmental concerns across sectoral boundaries. To this end, participants at the IGGWG meetings proposed several projects, whose realization will depend on the availability of funding and donor support. After endorsing this roadmap, ministries must create work plans to show strong commitment to green growth. As pointed out above, awareness raising is an important for the promotion of Green Growth activities in Cambodia. The Ministry of Religions and Cults (MRC) can aid the mainstreaming of environmental knowledge by promoting Green Growth as a qualitative alternative to rampant consumerism. This ministry could synergize the Green Growth message of inclusive sustainable development with pre‐existing Khmer moral and spiritual values.

Moreover, participatory formulation of project and discussion with stakeholders on a local level is necessary to ensure project sustainability and integration of the concepts on district levels. The participation of MoI would be conducive for successful implementation of Green Growth on local level, since this ministry is implementing the Decentralisation and Deconcentration (D&D) policy. Cambodian representatives could help the MoI by forming working groups across departments within each ministry. These working groups should then meet with other ministries’ working groups to enhance synergy and cooperation for Green Growth, while the facilitating role should remain with MoE. Moreover, other national stakeholders (NGOs, Academia, and Private Sector) should be involved in the projects outlined in the Roadmap.

3.6 DRIVERS OF GREEN GROWTH

Public spending represents a primary driver of economic growth. Thus, the current economic downturn should not be viewed in a negative light, only because increased government spending into infrastructure and employment creation is necessary. The need for increased public spending represents a great opportunity, because in preparing the public spending, the RGC can identify the right sectors for green investment and ensure that funds are used for environmentally sustainable development that has potential for job creation. The D&D of the governmental administration also represents a major driver for implementing Green Growth on the local level, where the right measures can spur sound agricultural development in rural areas. 22 | P a g e

IV. PATHS TO GREENING THE ECONOMIC DEVELOPMENT

It is clear evident that Cambodia has to continue its economic growth to reduce poverty and to achieve social progress. It is also reality that the increasing economic development will contribute to increasing environmental degradation, climate change and diminishing natural resources. In this light, in order to achieve Green Growth Approach, it is crucial to change the conventional development from “grow first, clean up later” to a more responsible long‐term attitude. To navigate towards a sustainable development path and adapt to climate change, National Green Growth Roadmap set seven accesses as described in the objective. In order to reflect the 7 accesses, there are three main interventions are identified: short‐term, medium‐term, and long‐term interventions.

4.1 SHORT‐TERM INTERVENTION (2‐5 YEARS)

In the short‐term, several insights and activities are indentified by IGGWG and need to be effectively carried out. In order to set the stage for successful implementation of Green Growth in the medium and long terms, the following interventions are of high priority:

A. Create a National Ministerial Green Growth Council;

B. Create a national public awareness and consultation process, amongst others by disseminating “Greening Workplace” and “Greening Home” educational materials and information posters;

C. Integrate the eco‐village/eco‐city initiatives into National Strategic Development Plan;

D. Develop national strategy for Greening industries: based on resource efficiency and 3R strategies;

E. Develop stimulus measures for promotion of sustainable agriculture including index‐based insurance schemes and/or micro‐financing to increase resilience in rural communities;

F. Develop a scheme for innovative investments that can carry on through‐out medium and long terms and consist of:

a. Payment for Ecosystem Services;

b. Green Tax and Budget Reform; and

c. Swap of debts schemes with international investors; and

G. Develop measures to strengthen the national environmental industry sector

4.2 MEDIUM‐TERM INTERVENTION (5‐10 YEARS)