CE and the Garment Sector
Clean Energy - the key to the region’s garment sector
Decarbonising Southeast Asia’s garment industry is a vital step in reducing the region’s emissions while securing its economic future. There is a wide-spread commitment from brands to sourcing renewable electricity as a key step to reduce Scope 3 emissions by at least 50% and ending reliance on onsite coal combustion by 2030.
The garment sector in Cambodia is economically important. It directly employs some one million people, mostly women, and hosts at least 800 exporting factories. In 2024, the sector represented 52% of export GDP, generating $13.74 billion in revenue.
If Cambodia is to retain its existing garment industry amid brands’ 2030 push to decarbonisation – and deepen its supply chains to remain competitive – it must rapidly accelerate and strengthen its clean energy credentials. The garment sector can become a renewable-powered manufacturing hub, but only if it quickly replaces biomass boilers with electric systems and guarantees access to affordable, certified renewable electricity.
Box: Cambodia's Garment Sector Energy Footprint — The Numbers That Matter
Cambodia’s garment industry isn’t just an export story—it’s an energy story.
Current Energy Reality:
- Garment factories consume approximately 8% of Cambodia’s national electricity supply today
- The sector uses a 42.5% electricity & 57.5% thermal energy split—with most thermal energy coming from burning wood
- Annual electricity purchases by the sector total roughly $365 million at current grid rates
Cambodia’s Electrified Future :
If all biomass boilers were replaced with electric alternatives—as global brands are increasingly demanding—the numbers shift dramatically:
- Garment sector electricity consumption would jump to 13% of the national grid supply
- Annual electricity costs would rise to approximately $781 million
- This shift would protect Cambodia’s forests, eliminate deforestation-linked reputational risks, and provide verifiable renewable energy credentials
To explore this, EnergyLab will undertake detailed analysis to examine five major questions about Cambodia’s garment sector and energy transition:
Assess
how prepared Cambodia’s existing Tier 1 garment factories are for rapidly approaching global decarbonisation and renewable-electricity requirements.
Model
what full electrification of garment-sector production would mean for national electricity demand and infrastructure planning.
Identify
the policy and market reforms needed to unlock affordable, certifiable renewable electricity for factories and protect industry competitiveness.
Analyse
the energy intensity, infrastructure demands and investment conditions for expanding Tier 2 (fabric and dyeing) production in Cambodia.
Evaluate
whether a fully electrified and renewably powered garment sector is technically and economically achievable — and the sequence of actions required from government, brands and industry to make it happen.
If you’d like to collaborate on this work,
please contact us.
Industry Energy Profile
Current energy consumption patterns, costs, and sources in garment manufacturing
Sector Statistics
Environmental Context:
Carbon footprint, energy-related emissions, and sustainability pressures
Regulatory Environment
Energy efficiency standards, environmental regulations, and compliance requirements
- What’s happening in Cambodia
- What’s happening in Laos
Technology Adoption Trends
Current uptake of clean energy solutions and barriers to adoption