4. Energy and Environment

This section covers the following topics: energy infrastructure, air quality, water, waste and soil

Indice

• 4.1. Energy
• 4.2. Air
• 4.3. Water
• 4.4. Waste
• 4.5. Soil

4.1. Energy

Cambodia's final energy consumption increased steadily by 7.2% per year from 2000 to 2019, from 1.32 million tonnes of oil equivalent to 4.97 million toe 1.

Before 2009, biomass accounted for the majority of the Total Final Energy Consumption (TFEC). However, the share decreased from 56% in 2000 to 44% in 2009 and reached 21% by 2019. As a result, biomass is gradually being phased out of the country's energy market.

Since 2009, the role of oil in Total Final Energy Consumption has become dominant, and the share has increased from 49% in 2009 to 58% in 2019. The average annual growth rate of oil consumption was 9% from 2000 to 2019.

The transportation and residential sectors have the largest share in Total Final Energy Consumption. Transportation is the main consumer of oil, while the residential sector mainly consumes biomass. The commercial sector has a smaller share but has high consumption growth rates over the period 2000-2019, around 16% per year, compared to the transportation and residential sectors at 9% and 3% per year, respectively. The industry sector showed an increase of 8% per year, slightly slower than the transportation sector. The high growth of the commercial, transportation and industry sectors was due to significant economic development, as reflected in significant foreign direct investment in the construction of commercial buildings, infrastructure and economic zones.

Electricity as a share of Total Final Energy Consumption grew the fastest, with an average annual growth rate of 18%, from 3% in 2000 to 18% in 2019, a small percentage, due to limited power supply capacity. Rising revenues and expansion of the electricity distribution network contributed to this significant increase in electricity demand between 2000 and 2019. Although growing slower, the residential and commercial sectors still dominated electricity demand in Cambodia, from 94% in 2000 to 67% in 2019. Although the industrial sector had a smaller share, it grew more than 29% during 2000-2019. As a result, the share of electricity consumption in industries increased from 6% in 2000 to 33% in 2019.

Total electricity generation increased from 492 GWh in 2000 to 998 GWh in 2010. Since then, electricity generation has increased ninefold, reaching 9,005 GWh in 2019 with an average annual growth rate of 17%. Oil was the main source of energy until 2013, however, the share of oil decreased with the start of hydropower generation in 2012 and coal-fired generation in 2015. In 2019, the share of oil decreased to 8%, while coal and hydropower increased to 44% and 46%, respectively.

Cambodia imports electricity mainly during the dry season. Electricity imports grew at an average annual rate of 25% from 2000 to 2019. Rising electricity consumption, especially in commercial and industrial activities, including special economic zones, as well as the insufficient power supply system in Cambodia have contributed to the rapid growth of electricity imports in the country.

The energy import dependency ratio (not only electricity), defined as energy imports divided by the sum of energy production and energy imports, increased from 35% in 2000 to 68% in 2019. This indicates that the country still relies on external sources for energy supply, making energy supply security vulnerable.

On March 16, 2023, the Cambodian government launched its “National Energy Efficiency Policy 2022-2030” which contains measures to reduce energy consumption by increasing energy efficiency 2. The policy sets a national target to reduce total energy consumption (thermal and electrical) by at least 19% by 2030, from nearly 90 TWh expected in a “business as usual” scenario . usual ” at just over 72 TWh .

Specific energy consumption targets are set for each sector: for example, the reduction target is set at 34% for the residential sector and 5% for the transport sector.

The government plans to use fiscal and non-fiscal incentives, dedicated energy efficiency funds, carbon financing instruments, green bonds along with international climate and clean energy funds to finance energy efficiency measures. It will also establish a monitoring and evaluation system and a data management system 3.

Master Plan 2022 - 2040 was launched , Cambodia's first long-term plan for its power sector, which includes a wide range of scenarios for a 20-year planning period covering electricity demand growth, expansion of power generation sources, and transmission and distribution network development.

The Master Plan aims to expand the high-voltage grid, promote renewable energy sources and minimize environmental impacts, providing reliable and affordable energy to all sectors. Expanding domestic generation capacity will cost $9,089 million. A total of $2,539 million has already been allocated for ongoing projects until 2025. The remaining $6,550 million will be invested, from 2026 onwards, in hydroelectric dams, solar photovoltaic plants, battery storage systems, natural gas and biomass.

4.2. Air

Air and noise pollution are increasing. Air pollution causes a number of significant health problems including asthma, chronic bronchitis, reduced lung function and premature death. In accordance with World Health Organization guidelines, air quality in Cambodia is considered moderately hazardous, with the most recent data indicating that the annual average concentration of PM 2.5 exceeds the recommended maximum of 10 µg/m 3 . Additionally, Cambodia ranked 125th out of 180 countries in the Environmental Performance Index (EPI) for air quality in 2020. Available data indicates that Phnom Penh has consistently high levels of air pollution.

Pollution is caused by a variety of factors such as industry and crafts, transportation, construction and infrastructure. The increased use of vehicles and means of transport, fossil fuels such as coal, fuel oil and diesel for electricity generation, continued use of firewood for cooking and burning practices of solid and agricultural waste are the main causes of air pollution.

Launched in January 2022, Cambodia’s Clean Air Plan, based on UNEP’s Actions on Air Quality report, outlines a package of measures to address the country’s major current and future emission sources. It is the first time that a national report has been produced in Cambodia to measure air pollutants that are harmful to health, and it draws data from the transport, agriculture, buildings, energy and water sectors.

If fully implemented, the plan could reduce two major pollutants, PM 2.5 and black carbon, by 60%. It could also help reduce emissions of methane and carbon dioxide, key drivers of climate change, by 24% and 18%, respectively, by 2030. These improvements would help Cambodia avoid nearly 900 premature deaths a year.

4.3. Water

Cambodia has ample water supply, mainly from the Mekong River, Tonle River Sap , from the Bassac River and other tributaries. Rivers, streams, lakes, aquifers and sea water are important sources for national economic development in many sectors, such as agriculture, manufacturing and handicrafts, hydropower, shipping, tourism, environmental protection and daily life. Based on per capita water availability, Cambodia is not a water-stressed country, but there are challenges related to water quality and stability of water supply in both the rainy and dry seasons 4.

In general, surface water in Cambodia meets the national environmental water quality standards. However, water quality is threatened in some areas, especially during the dry season, due to the influx of untreated wastewater from urban activities, agricultural runoff, shipping, etc.

Achieving Sustainable Development Goal 6 (SDG6) on clean water and sanitation is a huge challenge for Cambodia. In 2017, only 26% of the population had access to safely managed water supplies and 59% of the population had access to basic sanitation. Of the total number of people with access to water services in Cambodia, about 50% receive clean water from private water operators (PWOs) through small-scale water supply systems.

Disparities between urban and rural areas are significant: only about 20 percent of rural residents have access to safe drinking water, while in urban areas the rate is 70 percent. Although Cambodia has one of the fastest growing economies in Asia, access to affordable financing for water and sanitation remains a barrier for households to secure water connections and toilets for their homes.

Cambodia's water resources are facing increasing pressure due to rapid population growth, urbanization, industrialization, climate change, agriculture and economic development.

For example, water for agricultural irrigation is pumped directly from the source (rivers, lakes and soil). Given the risks of depletion, the Ministry of Water Resources and Meteorology ( MoWRAM ) has adopted a precautionary approach to groundwater use, limiting its use to supplementary supply for irrigation in the dry season. Although these approaches reflect best practices, they are difficult to implement on a large scale. In addition to irrigation, groundwater is also used by industries and, in many areas, is the main source of domestic water supply. Although no relevant data are available, negative impacts can be expected if this extraction continues to increase uncontrolled.

Water supply and wastewater treatment are becoming major concerns for Cambodian authorities. Poor water quality is partly a result of Cambodia's rapid economic development, but it also reflects poor management of water quality by the government and industry. Cambodian people and businesses are still not sufficiently aware of the need for efficient water use. The main reason for this is assumed to be the low cost of water, which is significantly cheaper than electricity.

Groundwater quality is generally satisfactory, but some areas have high levels of iron and salinity. Additionally, leachates from agriculture and landfills affect water quality. Large hydropower projects on the Mekong and its tributaries are likely to have adverse effects on access to water for downstream communities and countries when water levels are low.

Although untreated wastewater discharge poses environmental and health risks, it remains a common practice in Cambodia because the necessary wastewater treatment systems are not adequately implemented and adopted.

Furthermore, climate change will increase water management challenges: less rainfall is expected during the dry season and more during the rainy season, with more extreme weather events and potentially worse seasonal water shortages and floods. Changes in rainfall and weather patterns have a significant impact on water resources and the hydrological system, causing seasonal instability of water supplies, as well as increasing water quality problems.

In Cambodia, several ministries are responsible for water management, including the Ministry of Environment ( MoE ), the Ministry of Water Resources and Meteorology ( MoWRAM ), and the Ministry of Public Works and Transport, among others.

Several laws and regulations govern the water sector, including the Law on Environmental Protection and Natural Resources Management, the Law on Water Resources and Management, the Sub-Decree on Water Pollution Control, the Sub-Decree on the Establishment and Management of Special Economic Zones, and the Sub-Decree on the Management of Drainage System and Sewage Treatment System.

The National Strategic Plan for Rural Water and Sanitation 2011-2025 helps guide actions and implementation plans to expand clean water supply through aqueducts, wells, distribution of filtration tanks and installation of storage tanks. The Plan sets a target of 100% access to water supply, sanitation and hygiene across the country by 2025. To achieve this goal, the Ministry of Rural Development has prepared the first National Action Plan for Rural Water Supply, Sanitation and Sanitation 2014-2018, the second National Action Plan for Rural Water Supply, Sanitation and Sanitation 2019-2023, along with the Ministry's Strategic Plan for Rural Development 2019-2023, with the efforts and contributions of all stakeholders.

The Ministry of Water Resources and Meteorology has established the “Water Resources and Meteorology Strategy and Action Plan 2019-2023 to implement the National Strategic Development Plan 2019-2023” and has a total of 131 hydrological stations across the country, but only 59 are operational. Of these, 47 stations are installed along the Mekong River and 12 on the main tributaries .

Monitoring and management of pollution from point sources (wastewater from industrial zones, special economic zones, commercial buildings) and non-point sources (agricultural runoff, aquaculture practices and urban wastewater discharges) is still limited and not fully effective under existing laws and regulations.

Although industries have been required to install wastewater treatment plants for their production, there have been several cases of water pollution where industrial discharges have violated the standards set out in the Sub-Decree on Water Pollution Control.

In 2019, the Asian Development Bank (ADB) approved a $49 million loan to help the government achieve its 2025 goal of providing universal access to improved water, sanitation and hygiene services in rural areas of the country.

The Third Rural Water and Sanitation Sector Development Program will benefit over 400,000 people by building or rehabilitating 2,500 rural water facilities in at least 400 villages in 10 provinces. It will also support the construction of new toilets for individual households and the construction of public latrines in schools and health centers, as well as conducting hygiene awareness campaigns.

Construction work began in 2021 on the Bakheng Water Production Facilities , Cambodia's largest water treatment plant. The project is financed by the European Investment Bank (EIB), the European Union and France's Agence France-Presse. Francaise De Development (AFD) will increase Phnom Penh’s water production capacity by 65%, from 600,000 m3 / day to approximately 1,000,000 m3 / day. The water treatment plant is expected to meet Phnom Penh’s water demand and provide access to safe drinking water for the entire city by 2025. To achieve this, the local water authority (Phnom Penh Water Supply Authority PPWSA) will expand its water supply network by 1,600 km, enabling more than 100,000 new homes and 25,000 new businesses to connect.

4.4. Waste

In Cambodia, approximately 4.78 million tonnes of MSW were generated in 2020, with a generation rate of 0.78 kg/capita/day. Only 86% of cities and districts have access to MSW collection services. The current MSW management practice is landfilling (44%). There are 164 operational landfills across the country, receiving approximately 5749 tonnes of MSW per day. Recycling, incineration and composting share 4%, 4% and 2% of MSW generation respectively. The remaining 46% is disposed of in an uncontrolled manner (50-60% open burning) 5.

Per capita MSW production is estimated to grow to 1.16 kg/day by 2030 and 2.13 kg/day by 2050.

Municipal solid waste typically includes food waste (kitchen waste, food waste, vegetables, snacks, etc.); paper (office paper, newspapers, brochures, cardboard, etc.); plastic (plastic bottles, PET bottles, plastic bags, foamed plastic, etc.); metals (ferrous cans, ferrous scrap, aluminum scrap, copper, etc.); textiles (fabric, fabric, cotton, etc.); glass (glass bottles, broken mirrors, etc.); wood and dry matter (branches, grass, prunings, etc.); and others (ceramics, bricks, aggregates, stone, etc.).

The characteristics of waste strongly depend on socio-economic conditions: food waste is the most widespread waste in all locations, but varies from 49% in Phnom Penh to 80% in Kampong Cham. Chhnang (while the national average is 55%), followed by plastic and paper.

Many reforms are underway in MSW management in Cambodia. In addition to regulations and circulars, the Government has issued the Municipal Solid Waste Management Policy 2020-2030, which aims to initiate and implement a new advanced management system that takes into account economic efficiency, financial resource capacity, environmental sustainability and social acceptance. The Policy is designed to support Phase IV of the Government's Rectangular Strategy in ensuring environmental sustainability and climate change adaptation, prioritizing the strengthening of solid, liquid, gaseous and hazardous waste management through the implementation of the 4Rs (Reduce, Reuse, Recycle and Recovery). In this sense, waste is considered a resource and waste producers are obliged to pay the management fee.

The coverage of waste collection service is also expanding in many cities, however, the services are only properly operated in the central cities of Phnom Penh, Preah Sihanouk , Siem Reap Reap and Battambang. The current MSW management flow is characterized by three stages: generation and storage at source, collection and transportation by private operators and local authorities, and final disposal at landfills.

Industrial waste is collected separately and transported to industrial waste disposal sites by licensed operators. However, industrial waste is sometimes collected illegally by mixing it with Municipal Solid Waste.

The financial coverage of collection, management and disposal services mainly refers to the calculation of the profit margin resulting from the collection of waste tax and negotiation with national and subnational authorities. Therefore, waste management is usually based on fees collected from service users. The waste collection fee is usually calculated based on the type of building and the number of floors for household waste, and the types of activities, such as restaurants, guesthouses, clinics, schools, etc.

There is no standardization on tariff calculation and some complaints have been raised about excessive tariff set by local authorities. Investment and operating costs are financially different from city to city. In the MSW management system, collection and transportation costs represent the highest percentage, equal to 82%. Due to this high operating cost, private operators usually receive subsidies or donations from the government, including through a public-private partnership scheme.

Waste recycling in the country is generally limited and relies on the informal sector. Around 3,000 informal collectors collect a large amount of recyclables to sell to waste buyers and second-hand dealers, who then export them to other countries. Second-hand dealers are a key player in purchasing recyclables for sale to domestic recycling companies or for compressing materials for export. In 2021, there were 692 second-hand dealers operating nationwide, purchasing around 16,811 tonnes of recyclables per month, around 5% of total MSW generation or 9% of collected waste. Metals account for the highest share (46.76%), followed by paper and cardboard (33.16%), and plastic (17.82%). Based on the price of recyclables set by second-hand dealers, the total revenue from recovered materials was around US$56 million in 2021.

Currently, there are no large-scale incinerators for MSW treatment. In urban areas with limited access to waste collection services or landfills, the Ministry of Environment has installed small-scale incinerators without energy recovery. By 2021, 54 incinerators were installed, with a combustion capacity of 1 to 8 tons per hour.

In May 2023, the World Bank approved a US$60 million credit for Cambodia to improve solid waste management, especially plastic.

4.5. Soil

In Cambodia, soil erosion, deforestation, and competing land use are causing land degradation, depleting ecological services and watershed functions, and threatening rural livelihoods. Addressing these issues, several government-led projects are leveraging education and sustainable agricultural practices to promote resource conservation, alongside economic development.

Desertification is not a pressing problem. However, issues such as soil erosion, deforestation, inappropriate agricultural practices, declining biodiversity, and natural disasters caused by climate change collectively contribute to land degradation. As a result, these factors are jeopardizing agricultural production, food security, and the economic livelihoods of rural Cambodians.

The National Action Program to Combat Land Degradation (NAP), approved by the Royal Government of Cambodia and signed by the Prime Minister on 2 April 2018, highlights some of the pressing concerns facing the country.

Another pressing problem facing Cambodia is the declining effectiveness of its river basins in supporting life. The Sesan River , the Sekong River and the Sre River Pork , along with Tonle Lake Sap , collectively form 37 watersheds. According to the NAP, these watersheds support 250 irrigation systems and sustain approximately one million hectares of agricultural land.

Soil erosion contributes to increased sedimentation in streams and rivers. Increased sedimentation disrupts the growth of some plants by limiting photosynthesis , while stimulating the growth of other invasive plants, such as algae, through an influx of nutrient-rich sediment .

According to the NAP, due to the decreasing quality of watershed services and the increase in sedimentation in downstream areas, about 56 percent of the existing irrigation systems cannot be fully managed.

Most of the agricultural areas are rain-fed, as only 16.62% of the total rice-growing areas are irrigated. However, a large percentage of Cambodia's food production comes from irrigated farms. Concentrated demand for irrigation, combined with erratic rainfall (too much water in the rainy season and not enough rain in the dry season) directly compromises the profitability of farmland production.

Where irrigation is supported by groundwater extraction, there is growing concern about concentrations of arsenic, which is the most critical chemical contaminant of groundwater and affects a very large area, causing serious health consequences for those who consume contaminated water over a long period of time. Concentrations of up to 3,000 ppb have been found in some wells 6, significantly higher than the WHO drinking water quality standard of 10 ppb , while a study conducted in a rice paddy south of the capital found soil arsenic concentrations of 95 mg/kg, higher than the remediation action thresholds of other countries, such as Taiwan (44 mg/kg) or Denmark (55 mg/kg) 7.