-    H. E. Chhe Lidin, Under Secretary of State, Ministry of Mines and Energy 
-    H.E. Ly Vannasaut, Under-Secretary of State, Ministry of Land Managment, Urban Planning and Construction. 
-    Ms. Maria Perdomo, Regional Investment Team Lead, UN Capital Development Fund
-    Excellencies, colleagues, ladies, and gentlemen

It is my pleasure to welcome you today at the 1st Steering Committee Meeting of the “Accelerating Energy Efficiency in Cambodia’s Building Sector” project under the Joint SDG Fund to reaffirm our shared commitment to advancing just energy transition in Cambodia.

As one of the most vulnerable countries to the negative impacts associated with climate change, Cambodia faces rising temperatures, changing rainfall patterns, prolonged droughts and rising sea levels which pose real and present challenges to the lives and livelihoods of the population. These impacts could reduce Cambodia’s GDP by 2.5% by 2030 and by almost 10% by 2050 according to a study by the National Council for Sustainable Development and the Ministry of Economy and Finance. This would hinder Cambodia’s aspiration to become an upper middle-income country by 2030 and a high-income country by 2050. 

To mitigate these effects, the government has set ambitious targets to reduce its GHG emissions by 41.7% by 2030 in its Updated NDC and a goal to become a carbon-neutral country by 2050 in the Long-Term Strategy for Carbon Neutrality. The energy sector is the second largest source of GHG emissions in Cambodia, making the sector one of the highest priorities for decarbonization. Energy efficiency measures are key in achieving the dual role of reducing energy consumption and curbing GHG emissions. As such, the National Energy Efficiency Policy (NEEP) from 2023 aims to decarbonize the energy sector by reducing at least 19% of the total energy consumption by 2030. The building sector is the largest consumer of final energy in the country, accounting for about 52%[1]. 

We are meeting at a critical time as countries gear towards the next generation of the Nationally Determined Contribution, representing their sovereign commitments to combatting climate change under the Paris Agreement. UNDP is proud to support the Royal Government of Cambodia alongside other UN agencies and development partners to achieve an increased ambition, acceleration and inclusion in the development of mitigation measures in the energy sector. For many years now, we have been active in supporting regulatory reforms and institutional capacities to advance energy transition in Cambodia, such as the Regulation on Renewable Energy Certificate (REC), the Principles for Permitting the Use of Rooftop Solar  Power in Cambodia or the Technical Regulation on Building Energy Efficiency. We have also contributed to the development of innovative business models for installing and operating solar-minigrid systems to electrify remote villages, the establishment of the first Certified Energy Manager and Auditor Training Programme and the Roadmap for Low-Carbon and Resilient Buildings and Construction Vision 2050.

The Joint Programme for “Accelerating Energy Efficiency in Cambodia’s Building Sector” will further enhance these efforts, directly contributing to the implementation of the NEEP and the NDC through increasing the number of skilled professionals in Energy Management through hands-on training and enhancing the understanding of the potential of Energy Service Companies (ESCOs). The Programme will also support the Ministry of Mines and Energy in developing a set of Standard Operating Procedures (SOPs) for ESCOs, which would facilitate and encourage the penetration of ESCOs in the Cambodian market. More importantly, the Joint Programme will ultimately develop a bankable investment project that has the potential to scale up for greater impact in the future. 

Thank you for being here today to demonstrate your commitment to decarbonizing the energy sector in Cambodia and enhancing its environmental resilience and economic competitiveness in a time of profound disruptions and uncertainty in the global economy. 

Thank you. Som Orkun!