The current phase of Cambodia’s National Strategic Development Plan (NSDP) and Rectangular Strategy will end in 2018. The Ministry of Planning (MoP) and the Ministry of Economy and Finance (MoEF) are leading the inter-ministerial process in the formulation of the new NSDP and Rectangular Strategy. The Supreme National Economic Council (SNEC), chaired by MoEF, is the highest-level body mandated to provide the Prime Minister of Cambodia with the recommendations that lay the foundation for the high-level documents.

Achieving Cambodia’s international commitments – articulated through the SDGs, NDC, as well as green growth commitments and reflected in the National Green Growth Roadmap (2010), National Green Growth Policy (2013) and National Green Growth Strategic Plan (2013-2030) – will necessitate consistent, aligned, and integrated policy setting and implementation within its domestic array of policies. The design of Cambodia’s overarching planning document, which will be released in 2019, provides a window of opportunity to align and prioritize policy priorities and fast-track the achievement of key national development and green growth objectives.

Key challenges in this work will include ensuring that development of the NSDP 2019-2023 and Rectangular Strategy Phase IV is aligned with Cambodia’s international and domestic green growth targets, that the incorporation of green growth targets in the Rectangular Strategy is based on robust technical analysis, and that the implementation of these targets is aided by institutionalized and systematic investment planning and prioritization.

This project will continue to build on GGGI’s in-country engagement to strengthen the development of the next phase of the Rectangular Strategy and NSDP. The project strategically positions GGGI to operate effectively at a whole-of-government level and to support national planning priorities for the period 2019-2023 that are in line with Cambodia’s international commitments and domestic policies for green growth.

Consultations for the proposed work were also conducted in 2015-16 through the development of GGGI’s Cambodia (CPF).

PROJECT OUTPUTS FOR 2017-18:

• Undertake assessment of the green growth potential of Cambodia and submit to government
• Develop recommended policy priorities for the successor documents to the ‘Rectangular Strategy 2014-18’ and ‘National Strategic Development Plan 2014-18’ which support Cambodia’s domestic green growth agenda whilst also meeting its international commitments
• Develop monitoring arrangements for how these recommended policy priorities could be tracked, if approved
• Develop an investment plan on how for how these recommended policy priorities could be financed, if approved

PROJECT OUTCOMES FOR 2017-18:

• Government endorsement of the recommended policy priorities that support both Cambodia’s green growth agenda and international commitments, and its incorporation into the next phase of the Rectangular Strategy and NDSP 2019-2023

The overall outcome of the project is to support the government in incorporating green growth priorities into the next phase of the Rectangular Strategy and NSDP 2019-2023. Based on an assessment of relevant green growth issues and sectors, GGGI will provide technical assistance to improve coherence at the national level planning process through the delivery of the following outputs:

Assessment of Cambodia’s green growth potential developed and submitted to the government. GGGI’s Green Growth Potential Assessment (GGPA) tool will be utilized to identify green growth priority sectors through a comprehensive situational analysis and review of Cambodia’s targets reflected in various relevant plans and strategies. The GGPA will be continually enhanced to incorporate indicators reflecting poverty and social inclusion issues, and the revised methodology will be implemented through international benchmarking and consultations with key policymakers and stakeholders. Additionally, the experiences of GGPA piloting in Peru, Colombia, and Nepal will inform its application in Cambodia and support further refinement of the GGPA tool.

Recommended policy priorities for the successor documents to the Rectangular Strategy 2014-18 and NDSP 2014-18, aligned to Cambodia’s domestic green growth agenda and its international commitments, developed. In collaboration with central policymakers, GGGI will review the most salient international commitments made by Cambodia related to green growth in the priority sectors selected, and map these commitments against Cambodia’s domestic policies. Furthermore, GGGI will complete a qualitative assessment to evaluate the alignment, gaps, and potential areas of non-alignment between Cambodia’s domestic policies and international commitments. Summary recommendations will be provided to the RGC on this analysis.

Monitoring arrangements on recommended policy priorities (if approved) developed: GGGI will propose an integrated high-level monitoring plan to track progress against the international commitments for the priority green growth sectors and develop an implementation plan for the policy reforms required to address the gaps identified in priority sectors. This will entail setting goals and targets in the medium to long term, to be adopted through the next phase of the Rectangular Strategy and NSDP.

An investment plan to finance recommended policy priorities (if approved) developed. GGGI will identify and prioritize green growth projects for incorporation into the NSDP, which is a critical step towards mobilizing resources from development partners for green growth projects. GGGI will engage with multilateral institutions, including the ADB and the World Bank, to complement efforts in identifying financing gaps and options.