Carbon Credits and Renewable Energy: Cambodia’s Blueprint for a Green Economy.

Cambodia is at a pivotal moment in its energy journey, with vast opportunities to harness its renewable energy potential for sustainable development. As the global transition to greener energy intensifies, Cambodia is uniquely positioned to lead in Southeast Asia, leveraging its abundant natural resources, favorable geographic conditions, and commitment to sustainable growth. Dr. Alexander Evengroen, Chairman and Secretary General of the Cambodia Association of Renewable Energy (CARE), is spearheading efforts to transform Cambodia into a self-reliant energy powerhouse while unlocking economic opportunities for 2025 and beyond.

Cambodia’s Renewable Energy Landscape.

Currently, 52.93% of Cambodia’s electricity and 59.2% of its total energy supply come from renewable energy sources, placing the Kingdom among the top in the region for renewable energy utilization. However, the energy mix is heavily reliant on hydropower and bio-energy, leaving significant untapped potential in other renewable sectors. The next step for Cambodia involves diversifying its renewable energy portfolio to ensure energy security, enhance sustainability, and create avenues for economic growth.

CARE is supporting key government ministries, including:

• Ministry of Mines and Energy
• Ministry of Environment
• Ministry of Commerce
• Ministry of Economy and Finance
• Ministry of Agriculture, Forestry, and Fisheries

These ministries play a vital role in promoting and exploring the seven primary renewable energy sources:

1. Solar Energy
2. Wind Energy
3. Geothermal Energy
4. Biomass Energy
5. Hydropower
6. Tidal Energy
7. Waste-to-Energy Conversion

These sources collectively present unparalleled opportunities for reducing reliance on imported energy while addressing environmental challenges and contributing to Cambodia’s goal of becoming fully energy self-reliant.

Integration of Wind Power into Cambodia’s National Grid by 2026

Wind power is set to be connected to Cambodia’s national grid by 2026, adding a new clean energy source to diversify and strengthen the country’s energy supply. This development supports the government’s goal of making electricity more affordable and sustainable. The Ministry of Mines and Energy is actively working to integrate wind power as part of a broader effort to ensure energy security and sustainability for future generations.

Economic and Environmental Benefits

The benefits of renewable energy expansion extend beyond energy security. Investing in diverse renewable energy projects can significantly boost Cambodia’s GDP, attract global investors, and create thousands of jobs in construction, operation, and maintenance. For instance, studies estimate that every $1 million invested in renewable energy generates 5.7 full-time jobs, compared to just 2.65 in fossil fuels.

Moreover, renewable energy projects contribute to environmental protection, mitigate climate change impacts, and enhance public health by reducing greenhouse gas emissions. The potential for Cambodia to export surplus renewable energy to neighboring countries also represents a major economic opportunity, further bolstered by the development of regional energy trade agreements.

The Role of Carbon Credits

Carbon credits offer a transformative opportunity for Cambodia to monetize its sustainability efforts. These permits, allowing the holder to emit a specific amount of greenhouse gases, can be traded in international markets, creating financial incentives for emission reductions.

Cambodia’s abundant forests, mangroves, and agricultural potential position it as a strong contender in the carbon credit market. By implementing reforestation projects, conserving mangroves, and adopting sustainable agricultural practices, Cambodia can generate carbon credits while enhancing biodiversity and local livelihoods. Dr. Alexander Evengroen has significant experience in geothermal and solar projects, as well as visibility studies on carbon credits, making him a key figure in driving Cambodia’s participation in this lucrative market.

Steps to Harness Renewable Energy and Carbon Credits

1. Invest in Diverse Renewable Projects: CARE advocates for increased investment in solar, wind, and geothermal projects to complement existing hydropower and biomass resources.
2. Develop a Robust Legal Framework: Establish clear policies defining carbon rights and benefit-sharing mechanisms to attract investors.
3. Partner with Third-Party Verifiers: Ensure credibility by collaborating with organizations like Verra or Gold Standard for carbon credit certification.
4. Enhance Public Awareness: Conduct educational campaigns to engage local communities and businesses in renewable energy and carbon credit initiatives.
5. Launch Pilot Projects: Implement pilot projects in reforestation, mangrove conservation, and waste-to-energy to demonstrate feasibility and scalability.
6. Strengthen International Collaboration: Foster partnerships with international organizations, private investors, and NGOs to secure funding and technical expertise.
7. Promote Policy Integration: Work with government ministries to align renewable energy and carbon credit initiatives with national development plans.

Driving Cambodia’s Green Future

As Cambodia looks towards 2025, the potential for renewable energy and carbon credits to transform the economy is immense. By investing in these sectors, the Kingdom can reduce greenhouse gas emissions, achieve energy independence, and elevate its global standing as a leader in sustainable development.

Dr. Alexander Evengroen and CARE are calling on private sector stakeholders, government ministries, and international investors to collaborate in this transformative journey. To discuss opportunities and partnerships, contact Dr. Evengroen, Chairman and Secretary General of CARE, and Chairman of Evengroen Solution Group Co., Ltd.

Together, we can harness Cambodia’s renewable energy potential, unlock economic growth, and pave the way for a sustainable future.