GGGI discuss RE100 climate targets in the Cambodian garment industry with H&M and Adidas

PHNOM PENH, CAMBODIA, JANUARY 14, 2021 – Ms. Karolien Caser-Diez, GGGI Cambodia’s Country Representative, took part in a European Chamber of Commerce Cambodia Breakfast Talk on “How can European Brands Meet Other Global Climate Goals in Cambodia?”. The event brought together development partners working in the field of sustainable energy alongside representatives from Adidas and the H&M Group, a member of RE100. 

Representing Switch Garment, an EU SWITCH-Asia Programme project implemented by GGGI, Geres, and Garment Manufacturing Association in Cambodia, Karolien engaged with brands manufacturing in Cambodia about the challenges they face in reaching their climate goals. Switch Garment promotes sustainable energy practices in Cambodia’s garment industry, which employs more than 800,000 people and drives economic growth.  

“Factories that we engage with are starting to see that greening equals competitiveness. Thanks to initiatives like the RE100, factories understand that being green is a strategic benefit, and can help them secure contracts with international brands, explained Karolien.  

RE100 is a global initiative that joins together some of the world’s most influential businesses, including major fashion brands, committed to reaching 100% renewable energy. In their 2020 Annual Report, RE100 stated that 42% of new RE100 members are from the Asia-Pacific Region, showing that although it has some of the most challenging markets for businesses to source renewable energy, it also presents some of the biggest opportunities for green investment and growth. 

Mr. Peter Ford, Environmental Sustainability Responsible at the H&M Group in Cambodia, Vietnam, and Myanmar, outlined the practicalities of meeting renewable energy targets in Cambodia. “It is going to be difficult to meet RE100 targets in an area that is almost entirely coalpowered,” Peter explained, referring to Cambodia’s recent uptake of coal power. “Our [H&M Group’s] global targets are very clear: climate neutral by 2030 and climate positive by 2040. Countries that can work with us to meet those goals instantly become more attractive.” 

The climate commitments of brands signal the urgent need for change in the Cambodian garment industry. International brands are under pressure to meet climate targets, and nations that can facilitate this will likely have a competitive advantage. Mr. Matthew Armstrong urged the audience to see this as an opportunity for growth, “Will brands grow and invest more if Cambodian strengthens its grid towards green energy? The answer there is an astounding yes […] ‘Made in Cambodia’ is a brand, take this as an opportunity to make this a better brand that we can be proud of.”

Beyond meeting climate targets, the event highlighted the potential and demand for green jobs in Cambodia. GGGI’s economic modeling found that increasing resource efficiency in Cambodia’s key manufacturing industries could create half a million jobs by 2030. 

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