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The chamber outlined how the shift to solar energy can boost the economy in its report ‘Position Paper on Renewable Energy in Cambodia’ released recently.
The European Chamber of Commerce in Cambodia (EuroCham) recently called for a ‘green’ national economy in the country and urged the government to remove solar power tariffs and fully implement renewable energy projects. Chamber chairman Tassilo Brinzer praised government support for the use of solar panels on roofs as a step towards modernizing manufacturing
As Cambodia has gained a reputation as a green environment and more competitive, this will push it to turn an investment destination as investing in renewable energy can be supported as a qualified investment project in the new investment law and attract producers with clean energy goals in fulfilling its goals, Brinzer was quoted as saying by Cambodian media reports.
“This document sets out the criteria for the full implementation of solar energy infrastructure in industrial and factory areas, as well as increased investment in the sector to help Cambodia compete with Vietnam and Thailand,” he pointed out.
Cambodia has an opportunity to go beyond its renewable energy strategies to benefit from its unique location between the two leading Greater Mekong sub-region economies and to position itself as a leader in green business, the report said, adding that enabling Cambodian industry to better integrate into fast, modern, sustainable regional supply chains.
A major benefit, apart from reducing carbon emissions, is the potential for creating new industries that guarantee a better future in sustainable energy, led by the development of solar technology. The government can also save on operating costs and capital costs associated with energy costs by promoting a wider market for solar panels, the report further said.
Cambodia’s current mix of energy consumption is 51 per cent renewable energy. However, renewable energy is expected to decline to 35 per cent by 2030, before recovering to 43 per cent by 2040. Overall, this figure shows a decrease of 8.1 per cent on the use of renewable energy in the next two decades.
Rogier van Mansvelt, vice chairman of EuroCham’s green business committee, said most garment factories are under pressure from buyers to install solar panels.
The tax rate now has deducted about half of the solar benefits, raising the repayment period from about four years to eight years. A 50 per cent power upgrade is restricted to a percentage of the conversion to solar power.
“If Cambodia wants to maintain its attractiveness to garment investors, it should develop regulations and tax rates that support the installation of solar rooftops,” Mansvelt added.
Fibre2Fashion News Desk (DS)
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