Cambodia’s Garment Sector: Scaling Electrification to Deliver Growth
2026 Report
2026 Report
Cambodia’s garment industry is at a crossroads.
It generates over $13.7 billion in exports, and accounts for 52% of export GDP but the foundations of that success will be under a serious threat if Cambodia ‘s energy policy does not align with brand decarbonisation commitments.
Global apparel brands are moving fast on climate commitments. Under RE100, SBTi, and the UNFCCC Fashion Charter, many of the world’s largest brands must source 100% renewable electricity by 2030. Factories that cannot prove renewable energy use will see orders shift elsewhere.
Right now, Cambodia has a clear opportunity to align its energy policies with regional best practices. By enabling factories to verify renewable electricity use through direct power purchase agreements, or renewable energy certificates—already available in most other garment manufacturing nations—Cambodia can strengthen its competitive position. Updating rooftop solar regulations would further empower factories to compete alongside peers in Vietnam, Bangladesh, China, and India.
It generates over $13.7 billion in exports, and accounts for 52% of export GDP but the foundations of that success will be under a serious threat if Cambodia ‘s energy policy does not align with brand decarbonisation commitments.
Global apparel brands are moving fast on climate commitments. Under RE100, SBTi, and the UNFCCC Fashion Charter, many of the world’s largest brands must source 100% renewable electricity by 2030. Factories that cannot prove renewable energy use will see orders shift elsewhere.
Right now, Cambodia has a clear opportunity to align its energy policies with regional best practices. By enabling factories to verify renewable electricity use through direct power purchase agreements, or renewable energy certificates—already available in most other garment manufacturing nations—Cambodia can strengthen its competitive position. Updating rooftop solar regulations would further empower factories to compete alongside peers in Vietnam, Bangladesh, China, and India.
A Window of Opportunity
Electricity use in export garment factories already accounts for around 8% of national consumption, and contributes over $350,000,000 annually in energy payments.
A 100% electric, 100% renewable garment sector is technically achievable in Cambodia. There is no fundamental grid barrier. What is needed is policy alignment to protect jobs, safeguard exports, and position Cambodia as a renewable-powered manufacturing leader:
The choice is simple: electrify, certify, and compete — to keep garment orders and investments 100% cambodian.
EnergyLab Asia's new report highlights the situation in Cambodia today for existing factories to meet garment industry 2030 decarbonisation and electrification commitments, and how the available solutions would enable the government’s called-for development of this economically vital sector.
Thank you to the many people and organisations that provided insight and contributions!
A 100% electric, 100% renewable garment sector is technically achievable in Cambodia. There is no fundamental grid barrier. What is needed is policy alignment to protect jobs, safeguard exports, and position Cambodia as a renewable-powered manufacturing leader:
- Immediate clarity on RECs;
- Reform of rooftop solar rules;
- The introduction of corporate PPAs
The choice is simple: electrify, certify, and compete — to keep garment orders and investments 100% cambodian.
EnergyLab Asia's new report highlights the situation in Cambodia today for existing factories to meet garment industry 2030 decarbonisation and electrification commitments, and how the available solutions would enable the government’s called-for development of this economically vital sector.
Thank you to the many people and organisations that provided insight and contributions!