Cambodia’s garment sector can secure a stronger position in the global sourcing market if the country accelerates efforts to provide factories with verified renewable electricity.
According to a report from EnergyLab Asia, the apparel industry faces growing pressure from international brands seeking lower-carbon supply chains.
As sustainability requirements become a key sourcing criterion, access to clean and traceable electricity is emerging as a critical competitive factor.
The Cambodian clothing manufacturing industry employs nearly one million workers and remains one of Cambodia’s largest export industries,
Faster deployment of renewable energy and supportive policy reforms could help Cambodia protect jobs, attract new investment, and strengthen its reputation as a responsible manufacturing destination.
The study argues that clean energy is no longer only an environmental issue but also a business necessity for export-oriented industries.
Global fashion brands are increasingly setting science-based climate targets and demanding emissions reductions across their supply chains.
This trend is creating new expectations for garment suppliers to demonstrate progress in reducing their carbon footprint.
“Countries that can offer reliable access to renewable electricity may gain a significant advantage in attracting sourcing orders,” the report stated.
The report warns that Cambodia risks losing business opportunities if renewable energy availability fails to keep pace with buyer expectations.
Competing manufacturing hubs across Asia are expanding investments in solar, wind, and other clean energy solutions to meet growing demand from international customers.
The report believes Cambodia has an opportunity to position itself as a low carbon sourcing hub by accelerating reforms that enable manufacturers to access verified renewable power at scale.
“Such a transition could improve the industry’s resilience while supporting national economic growth objectives,” the report informs.
Image courtesy: Camboja Pring Samrang
