Royal Government of Cambodia (RGC) will approve the National Energy Efficiency Policy (NEEP) 2021-2030 in 2021. The Policy targets at least 19% of total energy consumption (thermal and electrical) reduction by the year 2030. Soon after the approval of this policy, the next immediate question will be on the financing to meet these targets from now until 2030.
Residential, commercial and public buildings are expected to contribute towards a major share of this emissions reduction target. The construction industry has experienced strong growth. At the end of first half of 2020, Phnom Penh office buildings increased to 558,710 m2, equating to an increase of 13.8% compared to end of 2019. The supply is expected to be more than double over next two years, despite COVID-19. Since the year 2000 to 2020, Cambodia's Ministry of Land Management, Urban Planning and Construction (MLMUPC) has approved 52,185 projects with a total construction area of around 150 million m2, with total investment around USD 59 billion, spreading beyond the major urban centres such as Phnom Penh, Kandal and Siem Reap towards the coastal provinces of Sihanoukville and Koh Kong. In this development, unfortunately inclusion of low-carbon affordable housing is completely undermined.