National Circular Economy Strategy and Action Plan (2021)

1. INTRODUTION ............................................................................................................................. 1

2. VISION, MISSION and GOALS .................................................................................................... 3

3. GUIDING PRINCIPLES ................................................................................................................ 3

4. STRATEGIC ANALYSIS .............................................................................................................. 4 4.1 A Circular Economy and its Significance ................................................................................. 4 4.2 A Circular Economy Approach and its Benefits for Cambodia ................................................ 6 4.3 A Circular Economy Approach and Alignment with Existing Policies in Cambodia .............. 9

5. MAINSTREAMING GENDER AND INCLUDING VULNERABLE GROUPS ...................... 11

6. CLIMATE CHANGE MITIGATION AND ADAPTATION ...................................................... 12

7. STRATEGIC OBJECTIVES (SOs) AND PRIORITY AREAS ................................................... 13 7.1 Current Challenges to a Circular Economy ............................................................................ 13 7.2 Strategic Objectives for a Circular Economy .......................................................................... 19

8. FINANCING RESOURCES ......................................................................................................... 38

9. MONITORING AND EVALUATION ........................................................................................ 39 i List of Figures Figure 1. A Visual Description of a Linear Economy .........................................................................5 Figure 2. A Visual Description of a Circular Economy.......................................................................5 Figure 3. Visual Description of a Circular Economy ........................................................................14 Figure 4. Summary of Challenges to a Circular Economy ................................................................ 18 Figure 5. the waste management option ............................................................................................ 19 Figure 6. PAs and Value Chain Challenges .......................................................................................20 Figure 7. Implementation Timescales ................................................................................................ 20 List of Table Table 1. Strategy objectives and priority actions ................................................................................ix Table 2. Initial analyses of private sector features related to linear economy (LE) and circular economy (CE) options for major sectors in Cambodia ......................................7 Table 3. The potential funding source ............................................................................................... 39 Table 4. ANNEX I Proposed monitoring and evaluation framework (for discussion and further inputs) .......................................................................................40 ii National Circular Economy Strategy and Action Plan (2021) ACRONYMS AD Anaerobic digestion ADB Asian Development Bank AFD Agence Française de Développement AFOLU Agriculture forestry and other land use ASEAN Association of Southeast Asian Nations BORDA Bremen Overseas Research and Development Association CCC Cooperation Committee for Cambodia CE Circular Economy CO2e Carbon dioxide equivalent CCC Cambodia Chamber of Commerce CCCA Cambodia Climate Change Alliance CSARO Community Sanitation and Recycling Organization COMPED Cambodian Education and Waste Management Organization D&D Deconcentration and Decentralization EAC Electricity Authority of Cambodia (EAC EDC Electricité du Cambodge (EDC) EIA Environmental Impact Assessement EPR Extended Producer Responsibility GDP Gross Domestic Product GERES Group for the Environment, Renewable Energy and Solidarity GGGI Global Green Growth Institute GPL Greening Prey Lang HBS Heinrich Böll Stiftung IFC International Finance Corporation IGES Institute for Global Environmental Strategies IPPU Industrial processes and product use ITC Institute of Technology of Cambodia JICA Japanese International Cooperation Agency KAS Konrad Adenauer Stiftung KOICA Korea International Cooperation Agency LE Linear Economy MAFF Ministry of Agriculture Forestry and Fisheries MEF Ministry of Economy and Finance MFAIC Ministry of Foreign Affairs and International Cooperation MME Ministry of Mines and Energy MISTI Ministry of Industry Science Technology and Innovation iii MLMUPC Ministry of Land Management, Urban Planning, and Construction MoC Ministry of Commerce MoE Ministry of Environment MoEYS Ministry of Education Youth and Sport MoH Ministry of Health MoLVT Ministry of Labour and Vocational Training MoI Ministry of Interior MoInf Ministry of Information MoPT Ministry of Posts and Telecommunications MoT Ministry of Tourism MRD Ministry of Rural Development MSME Micro, small and medium enterprises MSW Municipal Solid Waste MPWT Ministry of Public Works and Transport MoSVY Ministry of Social Affairs, Veterans and Youth Rehabilitation MUP Multiple use plastic NCSD National Council for Sustainable Development NCDDS National Committee for Sub National Democratic Development NDC Nationally Determined Contribution PIN People In Need RDF Refuse Derived Fuel REDD+ Reducing Emissions from Deforestation and Forest Degradation RGC Royal Government of Cambodia RUA Royal University of Agriculture RUPP Royal University of Phnom Penh SDG Sustainable Development Goal SEZ Special Economic Zones SME Small and medium enterprises SNAs Subnational Administrations Sida Swedish International Development Cooperation SUP Single-use Plastic TAF The Asian Foundation Tpa Tonnes per annum UN United Nations UNFCCC United Nations Framework Convention on Climate Change UNIDO United Nations Industrial Development Organization UNDP United Nations Development Programme iv National Circular Economy Strategy and Action Plan (2021) USAID United States Agency for International Development WB World Bank WtE Waste to Energy GLOSSARY Carbon Sequestration – is defined as the capture and secure storage of carbon that would otherwise be emitted to or remain in the atmosphere. Construction and Demolition Waste – is defined as waste materials arising directly from construction and demolition coinciding with infrastructure developments. Commercial and Industrial Waste – is broadly defined as the waste generated by businesses rather than individuals in consumption. Commercial waste is derived from businesses such as the service sector and industrial waste from operations such as manufacturing. Municipal Solid Waste – includes waste material which is produced via households and public amenity sites. This includes waste discarded by the public and collected from sources including: • Waste collected from households (separate homes) • Waste collected from communal properties (apartments) • Waste collected from on-street bins • Waste collected from public amenity sites Sustainable Production and Consumption – is defined as minimizing the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product. Remanufacturing – is defined as returning a used product to at least its original performance with a warranty that is equivalent to or better than that of the newly manufactured product. Reprocessor – is a business which coverts waste into reusable raw materials for feedstock. NOTES USD in this report refers to US Dollars One gigaton (Gt) = one billion metric tonnes v National Circular Economy Strategy and Action Plan (2021) ACKNOWLEGEMENT This Circular Economy Strategy and Action Plan was developed with technical and financial support from United Nation of Development Program (UNDP) and Swedish International Development Agency (SIDA) through the project of a Building an Enabling Environment for Sustainable Development (BESD). The Circular Economy strategy and action plan which is an involvement from all relevant stakeholders including public and private sectors to manage and use existing natural resources with sustainability and to enhance the usage of energy efficiency or renewable energy. The work was led by department of green Economy of General Secretariat of National Council for Sustainable Development, coordinated by H.E. Tin Ponlok secretary of state and also a BESD’s project director, with technical support by Dr. Moeko Saito Jainson who is a Policy expert of UNDP. The team of national and international consultants was led by Mr. Taing Meng Eang who is the lead author of this present CE strategy and action plan. The consultation meeting and workshop were conducted few times, among the technical staff of NCSD and MoE and also the Technical Working Group of Sustainable Consumption and Production which is a lined ministries focal point. vii SUMMARY Cambodia’s strong economy and increasing population has resulted in a sharp increase in the use of materials and energy and a surge in waste generation. This situation presents a significant challenge for resource and waste management, but it also offers new opportunities for Cambodia. This Circular Economy (CE) Strategy and Action Plan outlines the key vision, mission, strategies, and roadmap for Cambodia to transition towards a circular economy. The overarching goal is to enable the country to achieve a prosperous economy, a thriving and inclusive society, and a healthy environment. This will be achieved through more efficient and sustainable use of energy and material resources, while maximizing resource value and creating new economic opportunities for the country. A CE enables the improvement of many aspects of the economy and society. Wide adoption of CE models can significantly reduce the use of natural resources and energy, as well as decrease Greenhouse Gas (GHG) emissions, water and air pollution, and waste generation. Improved efficiency in material use and energy can reduce the costs of production and increase the competitiveness of businesses. Furthermore, a circular economy can generate new economic values and employment opportunities. Cambodia is in a strong position to make significant long-term changes and move closer towards achieving sustainable development through a CE, building on robust economic growth and its increasing, young consumer base. A complete transition to a circular economy requires time as it encompasses almost all dimensions of the country’s economy. This CE Strategy and Action Plan identifies entry points for critical actions and develops a roadmap to enable the country to shift from a linear to a circular system, primarily by focusing on resource use, energy, and waste management. Across the value chain, there are barriers to achieving a circular economy. They fall into the following categories: ● Financial/Markets: limited economic incentives and economic benefits result in minimal changes to existing practices, leading to slow improvements in resource use efficiencies; ● Management Practices: the implementation of existing regulations are met with challenges because of insufficient clarity, understanding and implementation of roles and responsibilities, low levels of awareness and, in particular, inadequate waste and recycling related infrastructure; ● Regulatory: more enabling legislative and policy frameworks are required to support CE practices or innovations and improvements and transition to a CE; ● Infrastructure/Technology: limited CE aligned infrastructure and modern technologies prevents the required moves forward in the waste and resources sectors; and ● Information/Awareness: insufficient information and data inhibits investment and promulgates sub-optimal waste management practices, compounded by limited general awareness on waste and inadequate domestic skills base to meet CE requirements. Introducing a CE approach in Cambodia requires overcoming significant barriers. To help achieve sustainable, widespread and long-term change, the CE vision, mission and goals are: viii National Circular Economy Strategy and Action Plan (2021) Vision: Mission: Cambodia develops towards a circular To create an enabling environment for the public, economy, which strives to achieve a private sector, academia, civil society, and prosperous economy, a thriving and development partners to drive the economic, social, inclusive society, and a healthy and environmental transformations required to environment. realise a circular economy. Goals: 1. Increase sustainable production and energy use 2. Increase sustainable consumption 3. Reduce waste generation at source 4. Improve effectiveness of waste collection, management, segregation and transport 5. Promote product reuse and repair 6. Increase recycling, composting and energy recovery 7. Ensure environmental controls at all waste management sites

8. Promote widespread environmental education and awareness raising The following Five Strategic Objectives and associated Priority Actions will serve as the foundation to overcome the aforementioned barriers. This Plan presents a roadmap by identifying high priority actions over the next five years, before moving on to medium and long-term tasks necessary to the CE transition. Table 1. Strategy objectives and priority actions Strategic Objective (SO)s Priority Actions SO1 Increase Efficient Use of 1.1 Promote use of sustainable energy and materials Raw Materials, and and energy efficiency Promote Sustainable 1.2 Promote production of alternatives to Single-Use Design, Production, Plastic (SUP) Remanufacturing and 1.3 Promote greening of the transport and Distribution distribution network 1.4 Develop and support markets for recycled feedstock in production 1.5 Develop Extended Producer Responsibility (EPR) schemes and plastic production standards 1.6 Develop eco-industrial parks SO2 Promote Sustainable 2.1 Reduce consumption of SUP and other single use Consumption and materials Effective Reuse and 2.2 Promote reuse and repair business models Repair SO3 Enhance Waste 3.1 Strengthen fee collection and effective waste Collection and collection Recycling 3.2 Improve waste segregation and recycling 3.3 Improve organic waste management 3.4 Provide effective business support for waste/ resource sector ix SO4 Ensure Effective 4.1 Improve landfill disposal and operations Management of 4.2 Support Waste to Energy for residual waste Residual Waste treatment SO5 Enhance Crosscutting 5.1 Improve CE awareness and environmental Stakeholder education Engagement, Awareness 5.2 Enhance capacity and skills and employment and Capacity Building opportunities of all stakeholders 5.3 Promote private sector engagement for CE innovation and scaling up A circular economy is a promising approach to maximize resource efficiency and values, while mitigating impacts from resource overuse and waste generation. In alignment with the economic, environmental and social development objectives set out in critical RGC policies, it supports a sustainable development approach and the UN Sustainable Development Goals (SDGs). This includes the Rectangular Strategy Phase IV of Cambodia, the National Strategic Development Plan (2019-2023), National Environmental Strategy and Action Plan and SDGs. Relevant SDGs include SDG 1 (No poverty), SDG 3 (Good health and wellbeing), SGD 4 (Quality education), SDG 5 (Gender equality), SDG 6 (Clean water and sanitation), SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 9 (Industry innovation, and infrastructure), SDG 11 (Sustainable cities and communities), SDG 12 (Responsible consumption and production), SDG 13 (Climate action), SDG 14 (Life below water), SDG 15 (Life on land), and SDG 17 (Partnerships for the goals). Fundamental to the CE transition is collaboration across the value chain, including among public and private sectors, consumers, waste managers, academic institutions, civil societies, and development partners. In particular, the Plan recognises the critical role of the private sector in driving and scaling up CE business innovation and solutions. This Plan further ensures mainstreaming of gender and vulnerability considerations into every aspect of planning and implementation, by promoting equal participation in decision-making processes, equal accrual of economic opportunities and benefits, and equal access to sustainable resources, clean energy, and clean environments for everyone involved. x National Circular Economy Strategy and Action Plan (2021)

1. INTRODUCTION Cambodia’s economy has shown strong growth over many years. GDP annual growth has been over 7% since 20111, with a GDP per capita increase from US$882 in 2011 to nearly US$1,510 in 20182. The rise in economic activity and consumption is fuelled by rapid population growth. The population has risen from 13.8 million in 2008 to 16.2 million in 2018, an increase of 2.4 million people in a decade.3 Much of the population increase is happening in the urban areas of secondary cities. A growing economy and population have vastly increased the use of energy and materials and the amount of waste generated, putting significant additional pressure on Cambodia’s valued and finite natural resources, and its environment. On average, the total final energy consumption4 in Cambodia grew by 6.9% in the period 2010–2015. The increased demand was satisfied through petroleum products (50.5%), biomass (36.0%), electricity (13.1%), and coal (0.4%)5. The transport sector, which primarily relies on petroleum, accounts for 46% of total energy consumption. The two major sources of electricity production are hydropower and coal. Between 2000 and 2015, Cambodia more than doubled its consumption of goods per capita6. During the same period, manufacturing, construction, and consumption gave rise to a sharp increase in both material use and waste. Total waste generation in a business as usual scenario is expected to grow from 33 million tonnes per annum (tpa) in 2017 to 99 million tpa in 20507. Municipal Solid Waste (MSW) from consumption alone is estimated to be 4 million tpa, 25% of which is generated in Phnom Penh8. Waste from industries pose another challenge. In 2017, commercial and industrial waste and construction and demolition waste contributed 16 million tonnes (48%) and 15 million tonnes (44%) respectively9. Private sector industry is linked to both resource use and waste generation. Industry currently relies significantly on natural resources and energy inputs and generates both operational and post-consumer waste, which often arises in the household waste stream. The garment sector, the second largest sector in Cambodia, uses fuelwood as its primary energy source and produces large quantities of textile waste. The wholesale and retail trade use large amounts of cardboard or plastic film for packaging, the majority of which is disposed of in landfills or dumpsites. The accommodation and food service sector relies heavily on single-use materials such as single-use plastic straws, bottles, food packaging and bags disposed of by consumers. In the construction sector, some waste products are reused and do not enter the formal waste management system10, but many require disposal. The manufacturing of bricks and cement require high- energy inputs, which primarily come from fuelwood and coal. 1 World Bank, National Accounts Data: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=KH accessed 25.03.20 2 World Bank, National Accounts Data: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=KH accessed 17.04.20 3 World Bank, Population Data: https://data.worldbank.org/indicator/SP.POP.TOTL?locations=KH&view=chart accessed 25.03.20 4 Total final energy consumption is the total energy consumed by end users. In Cambodia common energy needs include transportation, cooking, and household appliances such as lighting. 5 ADB (2018) CAMBODIA Energy Sector Assessment Strategy and Road Map https://www.adb.org/sites/default/files/institutional-document/479941/cambodia-energy-assessment-road-map.pdf 6 ADB (2018) Key Indicators for Asia and the Pacific 2018. ADB Manila. 7 Ricardo (2018) for UNDP Solid Waste Management in Cambodia – National Context. 8 MoE, (2019). Report on Environmental State, Third publication. Department of Geographical Information System Service, Ministry of Environment, Phnom Penh 9 Ricardo (2018) for UNDP Solid Waste Management in Cambodia – National Context. 10 Ricardo (2018) for UNDP Waste Generation Technical Modelling Report. 1 The large and still rapidly growing amount of waste generates numerous concerns including GHG emissions, water and air pollution, and odour nuisances. At present, only around 7.3%, about 75,000 tonnes per year, of Cambodia’s municipal waste is recycled. The rest is either disposed of at landfills or left uncollected. Uncollected waste is often disposed of improperly e.g. burned or buried, affecting the urban and rural environments, as well as public health. The present moment is critical for Cambodia’s transition to an upper middle-income country11. If the transition is to be sustainable and inclusive, economic growth must be promoted in tandem with improved management of resources, energy and waste from production to recovery. Otherwise, the country may face ever-growing environmental challenges including natural resource degradation, energy shortages, increasing levels of air and soil pollution and GHG emissions, and unmanageable amounts of waste, all of which eventually amount to enormous economic costs. To avoid such economic costs and to ensure environmental sustainability, improvements are required in several areas over different time spans: ● Promotion of the sustainable use of natural resources and use of sustainable and renewable energy. ● The improvement of efficiencies in material and energy use for production and manufacturing. ● The upgrading of production methodologies to reduce production losses and waste generation and to improve environmental and social impacts. ● Changes in consumer behaviour to minimize waste generation at source. ● The support and scaling up of new and existing innovations in waste collection, reuse and repair, and recycling to divert waste from landfills. ● The development and improvement of residual waste management operations including landfill, waste to energy (WtE) or alternative technology options. ● Awareness raising and capacity building in the private and public sector. This CE Strategy and Action Plan represents a high-level strategic approach to the introduction of circular economy in Cambodia. The goal is to enable the country to eventually close the loop of the entire value chain, by minimizing resource and energy input as well as waste, while maximizing resource value and creating new economic opportunities for the country. This CE Strategy and Action Plan supports Cambodia’s transition to a circular economy by identifying priority areas to enhance economic, environmental, and social outcomes. This will not only contribute to sustainable development in Cambodia but also to global goals for reducing plastic pollution and mitigating climate change. 11 Royal Government of Cambodia (2018), Rectangular Strategy Phase IV. Phnom Penh. 2 National Circular Economy Strategy and Action Plan (2021)

2. VISION, MISSION and GOALS VISION: Cambodia develops towards a circular economy which strives to achieve a prosperous economy, a thriving and inclusive society, and a healthy environment. MISSION: To create an enabling environment for the public, private sector, academia, civil society, and development partners to drive the economic, social, and environmental transformations required to realise a circular economy. The Mission will be achieved by the following GOALS:

1. Increase sustainable production and energy use

2. Increase sustainable consumption

3. Reduce waste generation at source

4. Improve effectiveness of waste collection, management, segregation and transport

5. Promote product reuse and repair

6. Increase recycling, composting and energy recovery

7. Ensure environmental controls at all waste management sites

8. Promote widespread environmental education and awareness raising

3. GUIDING PRINCIPLES The following Guiding Principles will be used throughout the transition towards a circular economy. A) Environmental Protection and Sustainability A key aspect of a circular economy is its ability to promote economic growth while sustaining environmental and natural systems. A transition to a circular economy requires improvements in every part of the resource value chain from material extraction and product design to waste collection and management. Each strategic objective and priority action shall ensure long-term environmental protection and sustainability in tandem with economic growth. B) Public Health and Safety This Strategy and Action Plan will ensure that each action takes into account and maximizes the health, safety, and well-being of all throughout Cambodia. All including citizens, communities, civil societies, the government, and the private sector will be informed, educated, and empowered regarding public health impacts of any circular economy action. Appropriate measures should be in place to avoid and mitigate any public health risks while maximising health benefits. C) Inclusive and Sustainable Economic Development One major benefit of sustained strong economic growth is the increases in quality and well-paid jobs for people. A circular economy shall aim to create new economic opportunities and quality jobs for all that promote environmental sustainability and social equity. Specifically, for waste management, it is vital that the urban and rural poor, especially informal waste pickers who have played a crucial role in Cambodia’s recycling sector, will benefit from formal employment opportunities under a circular economy. The goal of this strategy is to improve the livelihoods and well-being of all people in Cambodia through the promotion of a circular economy. D) Non-Discrimination and Intersectional Approach The CE Strategy and Action Plan will ensure that all, regardless of race, colour, gender, creed, religion, place of birth, age, health, education, ethnicity, and ability, have their rights respected, and have equal 3 access to participate in decision-making processes and benefit from economic opportunities, natural resources, environment and energy for their health and well-being. By recognizing the varied interests and needs of people of different genders, ethnicities, ages, and abilities, CE approaches shall be designed and implemented to reduce inequality and to support economic and social development for all. E) Inclusive and Effective Participation All concerned actors shall have the right and ability to participate freely in decision-making and in activities that affect them and their environment. While this is covered by the principle of inclusiveness, it will also positively contribute to reaching strategic goals, since it enables the CE approach to draw from the knowledge of participants who have first-hand experience with their own problems. Enabling women and vulnerable groups to actively contribute to solve the issues they face is therefore also a way of building meaningful partnerships. Accordingly, special attention will be paid to the poor and marginalized, including women and girls, who are among the most vulnerable to environmental degradation and have limited access to economic opportunities. Drawing on full consultations, the perspectives of all including the vulnerable shall be incorporated in designing and implementing activities, while enhancing their ability to benefit equitably from these activities. F) Multi-Sectoral and Multi-Stakeholder Approach This CE Strategy and Action Plan includes actions throughout the value chain, encompassing cross-cutting sectors including natural resource management, energy, manufacturing, transport, waste management and education. Intersectoral and ministerial collaboration shall be promoted to ensure the effectiveness and long-term impacts of this strategy. This Plan shall further promote collaboration among the government, private sector, citizens, civil society, development partners, NGOs and academic institutions, based on the full recognition of their crucial roles in accelerating a shift towards a circular economy. For instance, the government has a role in creating an enabling environment by developing regulations and providing economic and financial incentives. It has also a role in raising awareness among citizens through education programs in collaboration with academic institutions. In addition to raising awareness, academic institutions have a role in enhancing knowledge and building capacities essential for adopting CE approaches. The private sector has a role in driving innovations, mobilising scalable investments, and adopting CE business models to promote sustainable production and businesses. Citizens have a role in adopting sustainable consumption and lifestyles, for instance, by making conscious choices for purchasing sustainable and green products and by reducing waste volume and supporting reuse and recycling of waste. Finally, technical and financial support from NGOs and development partners is conducive to the successful CE transition while ensuring all Guiding Principles are met.

4. STRATEGIC ANALYSIS 4.1 A Circular Economy and its Significance At present, many countries are in the process of developing or implementing circular economy policies. The ambition is to transition from the linear economy approach, where raw materials are extracted and products are designed, produced, and distributed to consumers. These products are consumed and eventually collected for disposal at their end of life (Figure 1). Since this model relies on extraction of finite natural raw materials and the use of fossil fuels as the main energy sources for mass production and consumption, it has added enormous pressure not only on our environment but also on people’s lives. 4 National Circular Economy Strategy and Action Plan (2021) Figure 1. A Visual Description of a Linear Economy According to the International Resource Panel12, for example, approximately 90 billion tonnes of primary natural resources are extracted per year worldwide, and this vast amount is on track to double by 2050. The consequence is growing problems with waste and pollution, as well as ever increasing pressures on natural resources and biodiversity. This adversely affects people, especially the poor, who depend on natural resources and the environment for their livelihoods and well-being. In 2018, the Intergovernmental Panel on Climate Change (IPCC)13 highlighted its prediction of the impacts of global warming reaching 1.5oC at a minimum. Temperature rise beyond this number is anticipated to lead to unprecedented climate disasters worldwide. To avoid this, the IPCC argued for the necessity of radical changes from “this take-make-dispose linear pattern of production and consumption” towards a more sustainable economy model that redefines how we use and consume our resources. As an alternative approach and a crucial solution for today’s challenges, a circular economy seeks to decouple economic growth from adverse environmental impacts. Through closing the loop of the entire value chain, it maintains the value of products, materials and resources for as long as possible, and even creates new and additional values in the economy14 (Figure 2). To do so, it promotes the use of sustainable materials and clean renewable energy as inputs, improved efficiency in energy and material use for production, construction and transport, and sustainable consumption as well as reuse, repair and recycling of materials, and energy recovery from waste. Figure 2. A Visual Description of a Circular Economyp 12 International Resource Panel (2017) ASSESSING GLOBAL RESOURCE USE A systems approach to resource efficiency and pollution reduction. UNEP 13 IPPC (2018) Special Report Global Warming of 1.5 0C, Summary for Policy Makers available at https://www.ipcc.ch/sr15/ 14 Merli, R., Preziosi, M., & Acampora, A. (2018). How do scholars approach the circular economy? A systematic literature review. Journal of Cleaner Production, 178, 703-722. 5 A circular economy approach can be applied to numerous dimensions of an economy. Examples can be found for natural resource management15, smart city management16, transportation17, construction18 manufacturing19, and waste management. Wide adoption of circular economy models can significantly reduce the use of natural resources and energy, as well as Greenhouse Gas (GHG) emissions, air pollution and waste generation. For instance, its application is estimated to reduce global GHG emissions by up to 9.3 Gt CO2e20 in 205021 given 45 % of global GHG emissions are associated with the production of goods and materials. Reduction of waste volume through proper management, reuse, recycling, and energy recovery of waste can minimize not only environmental hazards such as polluted air and water but also public health risks from vermin, pests, and uncontrolled burning. However, the benefits of a CE go beyond environmental and public health issues. Improving efficiency in material use and energy, for example, is also a way of reducing the costs of production and of increasing the competitiveness of businesses. Furthermore, a circular economy can also generate new economic value and employment. The International Labour Organization (ILO) estimates that a circular economy can create 6 million new jobs globally in the reuse, recycling, remanufacturing, and repair sectors 22. The renewable energy sector employed 11 million people in 2018 growing by more than 6% since 201723 . A circular economy has also created new formal employment opportunities for the informal waste sector24 in recycling, a sector which was previously excluded or largely neglected. 4.2 A Circular Economy Approach and its Benefits for Cambodia In the case of Cambodia, the country’s strong economy and increasing population has resulted in a sharp increase in use of materials and energy and a surge in waste generation. This situation presents a significant challenge for the sustainable management of energy, resources and waste. By promoting more efficient use of energy and material resources, a CE enables the improvement of many aspects of the economy and society for Cambodia and the attainment of environmental sustainability. Wide adoption of circular economy models can significantly reduce the use of natural resources and energy, as well as GHG emissions, water and air pollution, and waste generation. Improved efficiency in material use and energy can reduce the costs of production and increase the competitiveness of businesses. Such cost saving measures are crucially needed especially at the time of economic shocks such as the global COVID- 19 pandemic in order for Cambodia to withstand and build back from these crises. Furthermore, a circular economy can generate new economic values and employment opportunities for the country, especially for informal waste pickers, women and vulnerable groups, who are often excluded from the formal economy. 15 Brears, R. C. (2018). Natural Resource Management and the Circular Economy. Palgrave Macmillan. 16 Prendevillea, S., Cherimb, E., & Bockenb, N. (2018). Circular Cities: Mapping Six Cities in Transition. Environmental Innovation and Societal Transitions, 6, 171–194. 17 Turoń, K., & Czech, P. (2017). Circular Economy in the Transport Industry in Terms of Corporate Social Responsibility Concept. Journal of Corporate Responsibility and Leadership, 3(4), 83-94. 18 Ghisellinia, P., Ripabc, M., & Ulgiati, S. (2018). Exploring environmental and economic costs and benefits of a circular economy approach to the construction and demolition sector. A literature review. Journal of Cleaner Production, 178(20), 618-643. 19 Lieder, M., & Rashid, A. (2016). Towards circular economy implementation: a comprehensive review in context of manufacturing industry. Journal of Cleaner Production, 115(1), 36-51. 20 Gt CO2e stands for gigatonnes of equivalent carbon dioxide. It is a simplified way of measuring several greenhouse gases by their carbon dioxide equivalent One gigatonne = one million tonnes 21 Ellen MacArthur Foundation. (2019). Completing the Picture: How the Circular Economy Tackles Climate Change. 22 ILO. (2018) World Employment Social Outlook 2018: Greening with jobs. Retrieved from ILO, https://www.ilo.org/weso- greening/documents/WESO_Greening_EN_web2.pdf 23 IRENA. (2019) Renewable Energy and Jobs: Annual Review 2019. Retrieved from IRENA, https://www.irena.org/- /media/Files/IRENA/Agency/Publication/2019/Jun/IRENA_RE_Jobs_2019-report.pdf 24 Schröder, P. (2019) Promoting a Just Transition to an Inclusive Circular Economy. Chatham House 6 National Circular Economy Strategy and Action Plan (2021) Critical to a successful CE approach is engagement of the private sector, on every scale, across all industries representing the entire value chain. Table 1 identifies private sector industries that are operating primarily on a linear economy model, with possible opportunities to transition towards a circular model. Table 2. Initial analyses of private sector features related to linear economy (LE) and circular economy (CE) options for major sectors in Cambodia GDP Main features related to LE No Major sectors CE opportunities %25 ● Improved production efficiency requiring less natural resource input ● Promoting sustainable production with ● Use of natural resources as main input minimal impacts on biodiversity and Agriculture, ● Large volume of agriculture residual 1 forestry, fishing 22.0% waste ecosystems ● Increased use of biodigesters to convert ● Fishing net waste agriculture waste into energy for household and business use ● Recycling of fishing nets ● Use of alternative sources to fuelwood for ● Use of fuelwood as main energy source steam boilers for steam boilers ● Improved energy efficiency and adoption ● Use of energy inefficient equipment and of solar energy high usage of electricity Manufacturing ● Adoption of large-scale WtE options in ● A large volume of textile waste 2 (primarily 16.3% cooperation with the cement industry to including polyester garment sector) minimize waste and air pollution ● A large volume of daily single-use ● Promotion of alternative sustainable plastic usage by 750,000 garment products as well as use of reusable workers through food and beverage products for food and beverage consumption consumption by workers ● Promotion of environmentally sustainable ● Bricks, cement, timber, glasses and and socially responsible production of metals as main input fuelwood, timber, sand bricks, and cement ● Significant use of forest resources ● Adoption of large-scale WtE options to (fuelwood and timber for brick and 3 Construction 13.6% construction) use waste as substitutes to coal for cement production to minimize waste and air ● Main use of coal for clement production pollution ● Main use of asphalt and concrete (sand, ● Promotion of sustainable, recycled, and rocks, cement) for road construction renewable material in road construction Wholesale and ● Prevalent use of single-use plastic and ● Greening distribution networks through 1) retail trade; other single-use items through 1) import use of alternative environmentally 4 repair of motor 9.5% and production of products, 2) friendly materials for packaging and vehicles and wholesale and retail of products, and 3) distribution, and 2) promotion of EPR and motorcycles purchase of products by consumers reuse, refill and recycling business models ● Promotion of low emission vehicle use (hybrid or electronic vehicles) ● Main use of fossil fuel and prevalent use ● Use of alternative environmentally Transportation of energy inefficient used vehicles 5 and storage 7.9% friendly materials for packaging and ● Use of single-use plastic for distribution distribution of products ● Promotion of repair and remanufacturing of transportation vehicles ● Low occupancy rate of real estate sector Real estate ● Promotion of efficient use of unoccupied 6 activities 7.2% leads to resource extraction without offices and real estate productive use of product ● Promotion of alternative environmentally friendly materials and reusable products Accommodatio ● Prevalent use of single-use items for food and beverage and hospitality 7 n and food 4.4% including plastic products (bottles, cups, sectors service straws, EPS, bags) ● Promotion of reusable products and sustainable packaging in food delivery services Mining and ● Loss of biodiversity and extractive field ● Extending lifespan of mines and ensuring 8 quarrying 1.8% leads to environmental harm efficient extraction of resources 25 ADB (2019) Key Indicators Database: https://kidb.adb.org/kidb/sdbsCountryView 7 ● Large amounts of waste generation and ● Promotion of sustainable disposal of contamination of natural groundwater waste and minimize contamination of groundwater ● Increasing demand for cooling Electricity, gas, technology from a growing middle class ● Increasing sustainable management of steam, and air- with unsustainable management of 9 conditioning 0.6% coolants coolants from air conditioners and similar items at their end of life supply ● Minimal standards for energy efficiency in air conditioners Among others, the garment and construction sectors are two key industries which can benefit significantly from CE approaches in Cambodia. The garment sector utilises substantial amounts of energy, water, chemicals, and materials as inputs for producing textiles and packaging, and transporting goods. With fuelwood as the main energy source powering steam boilers, the energy supply leads to degradation of forest resources. Outputs from the sector include emissions to air from primarily wood-based energy sources, waste from material losses estimated at 10-30% of inputs,26 and effluent from dyeing and laundering fabric. The construction sector also requires high energy inputs particularly for brick and cement manufacturing, currently reliant on fuelwood and coal respectively. The sector uses raw materials (e.g. timber, aggregates, and water) as inputs for construction material production, packaging materials and goods transport. With regard to specific CE benefits for these industries, for instance, increasing the industry’s access to efficient and lower cost renewable energy can significantly reduce high energy costs which are impeding textile industry development27. Investments for efficiency have a relatively short payback period of 2.5 to 4.5 years on a firm level. Both on a firm and national economy wide level, the CE approach can bring about substantial environmental and social benefits due to avoidance of health costs, GHG emissions, environmental pollution and waste. This equates to an avoided cost of 51% of taxable income in the garment industry and 20% in the construction industry.28 A cost benefit analysis of widespread efficiency investments shows 45% and 15% increases in GDP in the garment and construction sectors respectively by 2030 above a ‘business as usual’ baseline.29 Successful transition to a circular economy also requires the engagement of Micro, Small and Medium Enterprises (MSMEs) which play a vital role in Cambodia’s economy, contributing to economic and social progress.30 The Government’s Industrial Development Policy 2015-2025 sets out to develop and modernize Cambodia’s MSMEs for instance, through support in expanding and strengthening MSMEs’ manufacturing base, and by ensuring technology transfer and industrial linkages among MSMEs and other key players. In line with these aims, a CE approach can support MSMEs of any size through facilitating access to energy efficient technologies which reduce overhead costs or to financial support for expanding reuse and repair businesses which are dominated by MSMEs. Within the garment sector, there are many informal cottage garment factories subcontracting to the formal sector.31 These are MSMEs with 5 to 12 staff, mainly family members. Through careful and appropriate implementation of a CE approach, MSMEs in addition to larger formal garment factories will realise economic, environmental, and social benefits. A circular economy can also contribute to ensuring effective service delivery and accountable governance under ongoing Deconcentration and Decentralisation (D&D) in Cambodia. Nationally adopted CE enabling legislation, policies or fiscal incentives will be applied in a manner that fully incorporates local issues and 26 Reverse Resources (2016) How much does the Garment industry actually Waste? Retrieved from https://reverseresources.net/news/how-much-does-garment-industry-actually-waste 15-06-20 27 Netherland Ministry of Foreign Affairs (2018) Garment industry in Cambodia 28 Global Green Growth Institute (2018) The Economic, Social and Environmental Impacts of Greening the Industrial Sector in Cambodia 29 Global Green Growth Institute (2018) The Economic, Social and Environmental Impacts of Greening the Industrial Sector in Cambodia 30 Association of SouthEast Asian Nations: MSMEs, Key of Cmbodia’s Future Economic Success. Retrieved from https://asean.org/msmes-key-cambodias-future-economic-success/ on 15-06-20 31 ACTIF (2010) Report on Cambodia Textile & Garment Industry 8 National Circular Economy Strategy and Action Plan (2021) preferences to best fit the economic, social, and environmental needs of a district or city. The associated capacity building and skills development required for CE at the subnational level will support D&D through enhancing the effectiveness of public administration and providing further clarity on assignment of functions between Government tiers, both of which are identified as opportunities for improvement of D&D.32 Overall, the circular economy presents a new opportunity for Cambodia to leapfrog many traditional stages of development and avoid their negative externalities, building on past successes. For example, Cambodia has achieved a near universal ownership of mobile phones with a rapid adoption of mobile payment options without previously having cumbersome methods of payments like cheques. Yet, pathways to a circular economy in Cambodia may differ from the circular economy strategies in Europe and other countries which already have resources, technology and infrastructure for CE implementation. Hence, this CE Strategy and Action Plan is formulated and will be implemented in a manner that fully addresses national circumstances, building on available resources, technology and infrastructure. 4.3 A Circular Economy Approach and Alignment with Existing Policies in Cambodia This CE Strategy and Action Plan is fully aligned with the priorities set out under the Sustainable Development Goals (SDGs), Cambodian SDGs (CSDGs) and key national policies and strategies. As a circular economy involves the entire resource value chain, it encompasses the legal and institutional frameworks of nearly all sectors within the Cambodian economy. Thus, this Plan outlines the most relevant as follows. This Plan contributes to the following SDG targets that Cambodia has set: SDG 1 (No poverty), SDG 3 (Good health and wellbeing), SGD 4 (Quality education), SDG 5 (Gender equality), SDG 6 (Clean water and sanitation), SDG 7 (Affordable and clean energy), SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation, and infrastructure), SDG 11 (Sustainable cities and communities), SDG 12 (Responsible consumption and production), SDG 13 (Climate action), SDG 14 (Life below water), SDG 15 (Life on land), and SDG 17 (Partnerships for the goals) and SDG 18 (Land mine in Cambodia) Cambodia also has SDGs in the form of CSDGs, defining “inclusive and sustainable development’ as a priority area. Overall, this Plan addresses the CSDG’s goals to strengthen improved rural development, sustainable management of natural resources, improved management of urbanisation, and environmental sustainability including building climate resilience. This Plan directly addresses the goals of Rectangular Strategy Phase IV of Cambodia, which sets the national vision and strategies to achieve sustainable development and poverty reduction. The strategy also aligns with the National Strategic Development Plan (2019-2023), which further emphasizes environmental sustainability and sustainable natural resource management as key priorities. In addition to these high-level national strategies and internationally recognized goals, this Plan is governed by policies, laws, and regulations set out in the wide range of sectors this strategy seeks to transform. These include natural resource management and use, environment, energy, industry, construction, transport, and waste. The Strategic Objectives outlined in this strategy build on and are aligned with these policies, laws, and regulations and use them as a basis for identifying lead ministries for implementation and oversight. National policies highly relevant for a CE include: ● Rectangular Strategy Phase IV of Cambodia ● National Strategic Development Plan 2019-2023 ● National Environmental Strategy and Action Plan 2016-2023 ● Cambodia Climate Change Strategy Plan 2014-2023 ● Cambodia’s First (2002) and Second (2015) National Communication to the UNFCCC ● Cambodia’s First NDC and Second NDC (2020) 32 ADB (2011) Deconcentration and Decentralizaion Reforms in Cambodia. 9 ● Cambodia National Strategic Plan on Green Growth 2013-2030 ● Cambodia National REDD+ Strategy 2017-2026 ● National Protected Area Strategic Management Plan 2017-2031 ● National Forest Programme 2009-2029 ● Production Forest Strategic Plan (draft) ● National Biodiversity Strategy and Action Plan (2016) ● Cambodia Industrial Development Policy 2015 – 2025 ● National Sustainable Consumption and Production Roadmap (in preparation) ● National Energy Efficiency Policy (draft). ● The Intermodal Transport Master Plan (2021-2030, draft), Cambodia’s natural resources (e.g. protected areas, production forests, and water) are governed by the Ministry of Environment (MoE), the Ministry of Agriculture, Forestry, and Fisheries (MAFF), and the Ministry of Water Resources and Meteorology (MoWRAM) respectively. The recent Deconcentration & Decentralization (D&D) reform also allocates increased roles and responsibilities to subnational level authorities (e.g. the city, municipal and district authorities) for the management of natural resources. Relevant laws include the Law on Environmental Protection and Management of Natural Resources (1996), the Nature Protection Areas Law (2008), the Forestry Law (2002), the Fisheries Law (2006), the Law on Water Resources Management (2007), and the Land Law (2001). In addition, the Environment and Natural Resources Code is being drafted, which provides overarching principles and guidance for managing natural resources and environment in Cambodia. The Ministry of Industry, Science, Technology and Innovation (MISTI) is the responsible ministry for industrial policy and innovations. These are outlined in the Cambodia Industrial Development Policy (2015 – 2025) and the National Strategic Plan on Green Growth (2013-2030). The National Sustainable Consumption and Production roadmap also seeks to develop a sustainable pathway for Cambodia’s industrial production. There are also laws such as the Cambodian Labour Law which upholds the rights of employees throughout all sectors. The energy sector is governed by the Electricity Law (2001). The Ministry of Mines and Energy (MIME) is responsible for developing and implementing energy policies, strategies and plans, and providing technical standards. The Electricity Authority of Cambodia (EAC), an autonomous agency, issues regulations, issues licenses to providers, and reviews costs of electricity. EAC also monitors, guides and coordinates operators in the power sector and consumers to follow the policy, guidelines and technical standards issued by the MME. Electricité du Cambodge (EDC) became a state limited liability company in 1996, responsible for producing, transmitting and distributing power mostly in the country’s urban areas. The Rural Electricity Enterprises (REE) have to obtain licenses from EAC to buy electricity (mostly from EDC and neighbouring countries that generate electricity) and supply electricity within their boundary. Some of the REE have received subsidies from the Rural Electricity Fund to supply electricity to remote areas. According to the Law on Environmental Protection and Natural Resource Management (1996), the MoE is the lead agency in formulating policies, issuing regulations and coordinating actions on waste management and pollution control. Sub-decree 113 (2015) assigns responsibilities for the planning and management of solid waste to the city, municipal, and district authorities. Other key waste management regulations include Sub-decree No. 36 on Solid Waste Management (1999) and Sub-decree 72 on the Environmental Impact Assessment Process (1999). Although Sub-decree 72 is not exclusive to waste management, it ensures that waste management projects mitigate any environmental risks. In addition, strategies for the management of waste include the Phnom Penh Waste Management Strategy and Action Plan (2018-2035) MAINSTREAMING GENDER AND INCLUDING VULNERABLE GROUPS As reflected in the Royal Government of Cambodia’s Rectangular Strategy Phase IV and the National Strategic Development Plan, the cornerstones to achieving equitable sustainable development in Cambodia 10 National Circular Economy Strategy and Action Plan (2021) include strengthening gender equity, promoting social inclusion, and increasing economic empowerment programming for the poor, women, ethnic minorities, and people with disabilities. This CE Strategy and Action Plan recognizes the central social and economic importance of these vulnerable groups and ensures mainstreaming of gender and vulnerability considerations into every aspect of planning and implementation. The Plan will work to ensure equal participation in decision-making processes, equal accrual of economic opportunities and benefits, and equal access to sustainable resources, clean energy, and clean environments for everyone involved. For reasons including insufficient economic opportunities, forms of education, and safety nets, women and the poor are particularly vulnerable to environmental hazards. They have limited access to productive land and clean energy, and they are subject to health hazards arising from the growing volume of waste and increasing water and air pollution. Nevertheless, these vulnerable groups play a critical role in tackling environmental problems, including those that pertain to a circular economy. For example, the urban and rural poor are crucial actors in the informal recycling economy. Informal waste pickers collect materials from households, hotels, restaurants, and landfills for recycling. It is estimated that they contribute to the recycling of 7.3 % (75,000 tonnes) of the total municipal waste volume generated in Phnom Penh. Experiences from other countries indicate that the active engagement of the informal waste sector for recycling is conducive to scaling up CE interventions. Within the general context of vulnerability, women face more severe socio-economic obstacles to social and economic opportunities and well-being than men. Despite being the backbone of the garment sector, the main contributor to Cambodia’s economic growth,33 ingrained social norms define women as primarily home carers, while disregarding the vital social and economic importance of their unpaid work. Meanwhile, women’s position in the labour market is often precarious. For example, while men working in the informal waste sector are likely to have access to motorbikes or mechanized carts, women tend to be more dependent on push carts, which limits their ability to earn an adequate income. To mainstream gender and equality issues, the Plan incorporates several strategies and actions aiming to ensure inclusion and involvement in relevant decision-making processes related to the transition towards a circular economy, and the equitable sharing of economic, environmental, and public health benefits. These strategies and actions will include:

1. Ensuring that CE measures reflect the cultural, socio-economic, and political aspects of local contexts, and the diverse types, needs, and interests among different groups and within each group;

2. Enabling involved actors to exercise the rights and ability to participate freely in making decisions and in implementing activities that affect them and their environment. Special attention will be paid to the poor and marginalized, including women and girls, who are among the most vulnerable;

3. Incorporating gender and vulnerability perspectives in the development of awareness and education materials, and in training and capacity-building activities (by including women and the physically disabled, as well as ethnic minorities and indigenous people);

4. Ensuring equal participation of both women and men in adopting sustainable CE options both at the household and workplace level (e.g. in promoting the use of sustainable energy, energy efficiency, reusable items, and recycling);

5. Ensuring fair compensation for increased labour associated with activities taking place at the household level;

6. Developing employment opportunities along with targeted capacity building support that recognize and enhance the capabilities and strengths of women and vulnerable groups as equal to other groups;

7. Developing business models and support mechanisms that address the needs and enhance the capability of women and vulnerable groups; and 33 ILO (2018) Promoting Gender Quality: Gender Strategy 2017 – 2018, retrieved from https://betterwork.org/wp- content/uploads/2018/02/Gender-Strategy-2017-18.pdf 11

8. Establishing equity criteria and targets for monitoring progress in implementing the Strategic Objectives.

5. CLIMATE CHANGE MITIGATION AND ADAPTATION In December, 2015, 196 countries including Cambodia adopted the Paris Agreement under the United Nations Framework Convention on Climate Change (UNFCCC). Its main goal is to limit global temperature warming to 1.5 to 2 oC above pre-industrial levels. At the core of the Agreement are climate action plans, known as Nationally Determined Contributions (NDCs), under which each country must determine and regularly report on the contribution that it will make to reduce national greenhouse gas (GHG) emissions and adapt to the impacts of climate change. Cambodia is one of the most vulnerable countries to the impacts of climate change, due to frequent floods, droughts, windstorms, and other extreme weather events. Cambodia’s NDC (2020) therefore identifies adaptation as one of the highest priorities for the country. Compared to many other countries in the world, Cambodia is a relatively small GHG emitter, but GHG emissions are accelerating, due to the country’s rapid economic growth. The Cambodia NDC (2020) identifies the following sectors as the major sources of GHG emissions, which are the focus areas for mitigation efforts: energy, industrial processes and product use (IPPU), agriculture forestry and other land use (AFOLU), and waste. Key mitigation measures include increasing forest cover through REDD+ 34 and promoting energy efficiency and renewable energy to reduce emissions from waste in the energy and manufacturing industries and transport. This CE Strategy and Action Plan fully aligns with key priorities set by Cambodia’s NDCs and aspires to advance its national efforts for climate adaptation and mitigation. Strategic Objective One (SO1) is aligned with AFOLU, energy and IPPU related mitigation and adaptation priorities. Proposed actions to promote energy and material efficiency and a shift from high GHG emitting energy sources towards more sustainable renewable energy will directly contribute to GHG emissions reduction. This will also lower local demand for timber and fuelwood, contributing to the national REDD+ efforts to reduce deforestation and forest degradation and to enhance carbon sequestration capacity. SO1 also entails greening of the distribution and transport networks by promoting electric and hybrid vehicles and sustainable packaging to reduce waste. By diversifying Cambodia’s energy supply, SO1 will build climate resilience in the energy sector as an adaptation measure. Strategic Objective Two (SO2) contributes to mitigation measures set for IPPU through promoting the use of multi-use items and alternatives to single-use plastic, and t repair and remanufacturing to extend the life of many products and reduce emissions from waste. Strategic Objective Three (SO3) and Four (SO4) directly address mitigation and adaptation priorities related to waste. Waste is also a source of GHG emission (1.7% of the total). Unmanaged waste and landfills, which contain food and yard waste, are known to produce methane, one of the most potent GHGs. Open burning of waste (especially plastic) also releases toxic gases such as dioxin, furans, and mercury, harmful for the environment and public health. SO3 and SO4 promote the full collection of waste from households and businesses for appropriate treatments, thus significantly reducing the open burning of waste. Additionally, the separation of waste for recycling, composting, and waste to energy, as well as sanitary landfill management will minimize emission of methane and allow for its productive use through landfill gas extraction and anaerobic digestion. Effective waste collection also supports adaptation efforts to the 34 REDD+ stands for reducing emissions from deforestation and forest degradation in developing countries, and the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks in developing countries 12 National Circular Economy Strategy and Action Plan (2021) increasing extreme rainfall events predicted for Cambodia35 through ensuring canals and culverts are clear of waste accumulations, particularly in urban areas. Finally, Strategic Objective Five (SO5) is linked to cross-cutting and cross-sectoral efforts for climate action. SO5 seeks to increase public awareness about climate and environmental threats and needed actions, enhance technical skills and knowledge, and ensure full engagement of all actors including the private sector to create a climate resilient circular economy.

6. STRATEGIC OBJECTIVES (SOs) AND PRIORITY AREAS This CE Strategy and Action Plan set the priorities for policy development to remove current barriers to a circular economy. A successful transition from a linear to a circular economy requires a full understanding of the existing set of barriers across the value chain in transitioning towards a circular economy in Cambodia. 6.1 Current Challenges to a Circular Economy Figure 3 presents a summary of key challenges which are found in one of five categories: ● Financial/Markets: limited economic incentives and economic benefits result in minimal changes to existing practices, leading to slow improvements in resource use efficiencies; ● Management Practices: while several supporting policies and regulations exist, their implementation is met with challenges because of insufficient clarity, understanding and implementation in roles and responsibilities, low levels of awareness and, in particular, inadequate waste and recycling related infrastructure; ● Regulatory: more enabling legislative and policy frameworks are required to support CE practices or innovations and improvements to transition to a CE; ● Infrastructure/Technology: limited CE-aligned infrastructure and modern technologies prevents the required moves forward in the waste and resources sectors; and ● Information/Awareness: insufficient information and data inhibits investment and promulgates suboptimal waste management practices, compounded by limited general awareness on waste and inadequate domestic skills base to meet CE requirements. Below lists current existing challenges in shifting from a linear to circular economy for each section of the value chain as shown in Figure 4. (A. raw materials and design, B. production and distribution, C. consumption, reuse and repair, D. collection, E. recycling, and F. residual waste). 35 UNFCC Cambodia’s Second Communication on Climate Change. 13 Figure 3. Visual Description of a Circular Economy A. Raw Materials and Design Forest resources such as timber and fuelwood are critical raw material inputs to many sectors in Cambodia, including the garment, brick and construction sectors where they are used as a significant energy source. There is limited development and use of alternative sustainable energy sources for these sectors, such as rice husk, leading to an overreliance on forest resources. There is a severely underdeveloped market for using recycled raw material as inputs for the production process. This is hindered by limited standards for recycled feedstock such as plastic flakes or crushed glass and limited manufacturing capacity to use recycled inputs. B. Production Remanufacturing and Distribution Application of energy efficiency measures, as well as clean sustainable energy (e.g. solar) for production, manufacturing and distribution, is emerging but remains on a limited scale. Wider application of these measures, for example, for the garment, brick, and construction industries, is constrained by limited awareness of their economic and environmental benefits, enabling regulations, pilot activities, and adequate finance and infrastructure for scaling up. Limited appropriate infrastructure also hinders application of new technology, and clean energy options such as hybrid and electronic vehicles for the transport sector. The current capacity to close the product life loop is low due to limited infrastructure and circular economy networks such as Eco Industrial Parks, or recycling clusters which connect production, consumption, recycling, and reuse. There is no legislation currently available related to Extended Producer Responsibility (EPR), which mandates responsible producers of items such as product manufacturers, importers and sellers to be financially responsibility for treating their products once they are discarded. Thus, the external costs of products, including plastic, are not reflected in the final product price. The pricing therefore hinders recycling of the products or covering the costs of the final treatment. Economic incentives are lacking for the production and distribution of sustainable alternatives to disposable items in this part of the value chain, which are generally more expensive. This makes single-use products much more financially attractive for packaging and food and beverage industries, as well as for distribution. 14 National Circular Economy Strategy and Action Plan (2021) For instance, e-commerce operations, including food delivery services, rely mainly on single-use plastic packaging for distribution. C. Consumption, Reuse and Repair Similar to many other countries, consumers rely heavily on single-use products and have increasingly adopted a throw-away culture as a part of their daily life. Additionally, many products used by consumers which could be repaired or reused are thrown away. Requirements for increasing recycling rates such as separating waste at source are not well known or enforced. Most consumers remain unaware of the adverse impacts of disposal of waste such as plastic on the environment, public health, and economy. They are also unaware of possible solutions to reduce, reuse, and recycle waste or the availability and importance of using alternative sustainable products. Due to the absence of weight-based collection fees, households have limited incentive to reduce waste. This is compounded by a limited scale of businesses in the reuse and repair sector, limited regulations to minimize SUP use, and little economic incentive to expand markets for alternative products. D. Collection Waste collection service coverage in Cambodia varies greatly depending on location. Some rural areas have no access to formal collection services for waste, yet up to 80% coverage is reported in Phnom Penh36. Uncollected waste is often burned or ends up on streets and in waterways, eventually carried to the ocean via rivers. Fundamental challenges to effective collection include inadequate contractual economic incentives, constrained waste management budgets, high costs for transport and equipment, and limited collection of fee payment from the public. Impractical contracts with waste collection companies deter investment by the contracted companies. For example, if the contract duration is too short, investment will be discouraged. Unclear performance requirements and finance flows in contracts are also contractual challenges to effective waste collection. These challenges limit value for money and discourage new companies from entering the market, even when collection contracts are open for competitive bidding. E. Recycling At present, recycling is Cambodia is driven by the informal sector. It is estimated that about 7.3% of municipal waste in Phnom Penh, about 75,000 tonnes per year, is recycled informally37. Informal waste pickers sell recyclables such as paper, plastic, aluminium, iron, and glass to a third party who bulks the materials for export to neighbouring countries. Yet, their participation in formal recycling operations has been limited. Examples from other countries suggest the successful transition to a circular economy depends on the effective participation of the informal sector in formal recycling models. Most of the existing formal recycling industries such as plastic recycling and organics treatment are small scale, with the overall capacity to treat less than 1% of total waste generated in the country. The potential to recycle e-waste such as electronics and batteries has not been explored fully either. The recycling sector in Cambodia faces various challenges in starting up, maintaining, and scaling up their business operations in Cambodia. Unsorted and uncollected waste are amongst the biggest challenges for recycling. Due to the absence of segregated waste collection from households or businesses, easily accessible community recycling collection points, bottle deposit systems or mechanisms to separately collect different waste streams, waste remains unsegregated in a mixture of organic, plastic, hazardous, and e-waste. This incurs additional health and economic costs for recyclers to sort the mixed waste enough to 36 Ricardo (2018) for UNDP Report on Solid Waste Management in Cambodia – National Context. 37 PPCA, IGES, Nexus, UN Environment, CCCA., (2018). Phnom Penh waste management Strategy and Action Plan 2018-2035. Phnom Penh, Cambodia. 15 ensure a low contamination and high-quality feedstock for reprocessing. Most recycling companies also face the challenge of irregular and insufficient supply of feedstock as they rely on waste delivery from waste collection companies. Another challenge relates to the existing economic incentives for waste management and high costs of recycling. Since there are low or no landfill gate fees, waste collection companies have limited incentives to divert waste from landfills to be recycled. Conversely, when a gate fee is high it incentivises the diversion of waste from landfills towards recycling and WtE if the infrastructure for these alternatives is available. Operation costs of recycling industries remain high, due to costs associated with transport, purchase of land, recycling and treatment equipment, numerous requirements for permits, as well as administrative delays associated with Environmental Impact Assessments (EIAs). Moreover, many of the existing recycling industries in Cambodia have limited production capacity and efficiency due to their prevalent use of inefficient low-tech machines and unskilled labour. For instance, the processing time of existing organic composting facilities in Cambodia is around 3-4 months.38 Introducing modern and more efficient equipment can improve the production efficiency and significantly reduce the processing time. Markets for recycled products are undeveloped with limited use of recycled feedstock due to low trust for recycled products, including organic compost materials, and the unavailability of standards to ensure their quality and safety. No national guidelines are currently available to mitigate negative environmental impacts on air and water from reprocessing facilities. Other challenges include unclear roles and responsibilities of relevant institutions, numerous complex regulatory requirements, limited availability of data and markets for recycled products, and limited business and finance support for recycling industries. F. Residual Waste Management Most collected waste is currently disposed of at open dumpsites, susceptible to various hazards, such as leachate contamination of surface, ground water and soil, odour, disease vectors, accidental hazard caused by fire, and release of GHG emissions and air pollutants. A low or no landfill gate fee contributes to insufficient funds for sanitary landfill construction and proper management operations to control and minimize possible hazards. The current sites do not utilise proper operational plans and basic management functions. For treatment of residual waste and energy recovery, Waste to Energy (WtE) has been used in many countries including Cambodia, though, on a limited scale. WtE takes various forms to convert waste into a fuel source, generating heat and electricity. In the case of Cambodia, there are plans to introduce centralized WtE processing facilities to convert waste to generate electricity for the grid. Besides this, there are several decentralized WtE initiatives. For example, some garment factories use on-site incinerators to burn textile waste to generate steam for production. A cement factory uses waste as a coal substitute to generate heat for cement production. An option is being explored to develop Refuse Derived Fuel (RDF) to convert municipal waste into energy, as well as a fuel for cement factories. WtE has also been used in rural areas through the use of biodigesters to convert agriculture residuals to generate energy for households and electricity for businesses. Many of the challenges, which WtE related businesses (except for small-scale on-site incinerators for the garment industry and household-level biodigesters) face, are identical to those recycling operations face. These include unsorted waste, irregular and insufficient supply of feed waste, limited landfill gate fee, high costs of transportation and operations, and complex regulatory requirements. Additionally, costs for initial investment as well as operation are high, in part resulting from the significant environmental risks of WtE that require stringent environmental standards and monitoring mechanisms to be in place to minimise contamination of air, water, and soil and to prevent public health impacts. Another, but specific, barrier for centralised WtE operations relates to low feed-in-tariff. Subsidies are required to ensure the profitability of these WtE operations. 38 COMPED Composting Facility, Battambang. http://www.smallstepsproject.org/turning-waste-into-compost-in-battambang/ 16 National Circular Economy Strategy and Action Plan (2021) In summary, as many of these challenges are interlinked across the entire value chain, overcoming certain barriers in isolation will not be sufficient to enable a successful transition to a circular economy. For example, even if source waste segregation is enforced to enable businesses to have greater access to feedstock for recycling, without economic incentives or markets for recycled products, a recycling business may not be financially viable. Similarly, raising the landfill gate fee without supporting other waste diversion mechanisms and businesses at the same time may give rise to an increase in illegally dumped waste. The following section presents a comprehensive set of priority areas as solutions for each of these challenges, enabling the transition to a circular economy (Figure 4). 17 Challenges are found throughout the value chain Production Raw Materials Consumption Reuse Remanufacturing and Collection Recycling Residual Waste and Design and Repair Distribution No economic incentives External costs of products for the use of SUP High costs of transport and Low landfill gate fee, disposal is Low landfill gate fee, disposal is not reflected in product Undeveloped alternatives equipment cheaper than treatment cheaper than treatment prices Finance/ markets for Markets recyclables and Limited economic No weight-based Limited collection of fee No economic incentives for organics incentives for the Low feed in tariff for energy collection fee for payment investment / operational costs of production of SUP recovery household waste recycling alternatives Unclear institutional roles and Open dumping or disposal of Significant reliance Unsorted waste Mass consumption of responsibilities for recycling waste on streets and waterways Management on forest resources single-use products Irregular and insufficient supply of Irregular and insufficient supply Practices as input to including SUPs No full collection of waste feedstock for recycling or waste to of feed waste for recycling or industries Category of Challenge energy (WtE) waste to energy (WtE) Numerous complex and No Extended Producer Numerous complex and expensive expensive requirements for Responsibility (EPR) requirements for permits No regulation of SUP or permits No enforcement of at source Regulatory support for CE business Administrative delays in Limited enabling policies waste segregation models Administrative delays in obtaining obtaining EIAs for energy efficiency or EIAs Limited environmental renewable energy standards & guidelines No communal recycling No large-scale recycling or organic Limited infrastructure for collection points waste treatment infrastructure Infrastructur electric vehicles No deposit system for Inefficient technologies Limited functioning controlled e& recycling landfill capacity Technology No environmental standards or No Eco Industrial Parks or No recycling clusters guidelines recycling clusters Inadequate skilled domestic labour Limited awareness on sustainable consumption Limited knowledge of Baseline data is not available to guide Information waste treatment options investment decisions Benefits to repair not promoted Figure 4. Summary of Challenges to a Circular Economy 18 National Circular Economy Strategy and Action Plan (2021) 7.2 Strategic Objectives for a Circular Economy A transition from a linear to a circular economy approach requires time as it encompasses almost all aspects of a country’s economy to shift towards a more sustainable system. Thus, this CE Strategy and Action Plan identifies entry points of key actions and develops a roadmap to enable the country to shift from a linear to a circular system, primarily through the lens of resource use, energy, and waste management. This Plan identifies waste management as a crucial entry point for a circular economy, highlighting the urgency to improve the capacity to handle rapidly increasing waste volumes. The below set of typical CE interventions for waste management follows the waste hierarchy. The waste hierarchy ranks waste management options from most preferred to least preferred from an environmental perspective. It gives priority to preventing waste in the first place, and lastly to (landfill) disposal which is the least preferable management option. In order of preference, the waste management options as shown in the Figure 5; Waste Prevention Reuse and Repair Recycling Energy Recovery Disposal Figure 5. the waste management option

1. Waste Prevention. This includes practices such as using less material in design and production, keeping products in use for longer, and reducing use of hazardous substances. It also includes sustainable consumption to avoid waste generation at source.

2. Reuse and Repair. This encompasses all activities required to extend a product’s life before it becomes waste, and includes practices such as designing for reuse, cleaning, repairing, or refurbishing products or their parts.

3. Recycling. When waste is generated, recycling is the recovery of resources through reprocessing waste materials into new products or raw materials. It also includes composting biodegradable organic waste, such as food or garden waste.

4. Energy Recovery. This includes practices such as incineration, anaerobic digestion gasification and pyrolysis, and specific refuse derived fuel or solid recovered fuel plants, which recover energy through thermal treatments. It also yields other materials such as digestate from organic waste treatment or ash from incineration, which requires disposal as hazardous waste.

5. Disposal. This is primarily landfilling residual waste and can include incineration without energy recovery. This Plan consists of five Strategic Objectives (SOs), each of which comprises Priority Areas (PAs) and Actions as shown in Figure 6. These are: 19 SO1: Increase Efficient Use of Raw Materials, and Promote Sustainable Design, Production, Remanufacturing and Distribution; SO2: Promote Sustainable Consumption and Effective Reuse and Repair; SO3: Enhance Waste Collection and Recycling; SO4: Ensure Effective Management of Residual Waste; and SO5: Enhance Crosscutting Stakeholder Engagement, Awareness and Capacity Building The PAs offer a comprehensive approach to addressing challenges through detailed Actions. PAs are identified across the value chain as summarized in Figure 5, which reflects Cambodia’s priorities and context: Figure 6. PAs and Value Chain Challenges The following provides summary overviews of the SOs and their plans of action for implementation. Indicative timescales over 15 years are given, showing short-term, immediate PAs for the next five years, and medium and longer-term actions over the remaining years. Government Agencies and Development Partners (DPs) relevant to implementation are identified (Figure 7). 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 • • • • • • • • • • • • • • • Short Term PA [S] Longer Term Action [L] Medium Term PAs [M] Figure 7. Implementation Timescales SO1: Increase Efficient Use of Raw Materials and Promote Sustainable Design, Production, Remanufacturing, and Distribution SO1 focuses on the early stages of the CE value chain. It mainly addresses issues around use of raw materials such as timber and fuelwood, sustainable energy and energy efficiencies, and sustainable 20 National Circular Economy Strategy and Action Plan (2021) production and distribution. The expected outcomes are an efficient and more environmentally friendly manufacturing sector, a stimulated market for alternatives to products, and a diversified and sustainable material and energy supply. This SO does not consider remanufacturing39 and product design as they are not prevalent in the country. PA1.1 Promote use of sustainable energy and materials and energy efficiency Timescale Government Related DP Actions S M L agencies* initiatives

1. Pilot initiatives/projects to develop benchmarks EU, GERES, a. Sustainable energy and energy efficiency GGGI, Private benchmarking for the garment sector MME, MoE, Sectors, GMAC b. Energy efficiency benchmarking for property and MISTI, NCSD, ADB, UNDP, construction sectors MoT, , MEF, JICA MOWRAM, c. Energy efficiency benchmarking for the hospitality ASEAN Green MAFF, EDC, sector Hotel Standard EAC, MoI d. National Grid Assessment EU MLMUPC, e. Solar DC Micro Grid pilot UNDP MRD, MoEYS, f. Solar farms pilot UNDP g. Solar Water Pump pilot UNDP

2. Draft and enact enabling regulations a. Draft National Energy Efficiency Policy (2018- ADB, Private 2035) Sectors b. Sub-decree on energy efficiency MME, NCSD, UNDP, CCCA MISTI, MEF, ADB, UNDP, c. Prakas for energy efficiency for refrigerators MOWRAM, CCCA MAFF, EDC, ADB, UNDP, d. Prakas for energy efficiency for air conditioners EAC, CCCA e. Technical guideline for Solar Home System MLMUPC, UNDP f. Technical guideline for Solar Rooftop MRD, MoEYS, UNDP MoI, MoT Mekong-ROK g. Guidelines and Certifications for green buildings Cooperation Fund

3. Upscale use of sustainable energy and materials and energy efficiency interventions a. Market analysis to identify existing successful MME, MISTI, UNIDO, Private energy and material interventions including lessons MEF, MAFF Sectors, learned from pilots MOWRAM, , EDC, EAC, b. Scale up proven, successful interventions (e.g. MLMUPC, increase take up or scale) MRD, MoEYS, MoI, MoC *Bolded text designates lead Ministry or Agency Economic growth has led to increased use of energy and materials, depending substantially on finite and non-renewable resources. Promoting energy and material efficiencies and renewable alternatives is essential for the country to continuously meet growing demands, as well as to sustain finite resources. This PA requires collaboration/work with business sectors reliant on raw material and energy inputs such as the garment, hospitality, property and construction, and agriculture sectors, to develop benchmarks for sustainable and renewable energy and energy efficiency. The PA includes support for pilots to demonstrate the feasibility of possible approaches to shift towards alternative and sustainable materials, and to enable wider application of sustainable energy such as solar and energy improvements in these sectors. Replication as well as upscaling of proven measures will be supported through development of enabling legislative 39 BS 8887-2:2009 Design for manufacture, assembly, disassembly and end-of-life processing (MADE) Terms and Definitions. Remanufacturing is defined by British Standard BS8887 Part 2 as : ‘’returning a used product to at least its original performance with a warranty that is equivalent to or better than that of the newly manufactured product’’ 21 frameworks and policies related to energy efficiency and solar energy. Specific successful activities and interventions related to sustainable energy and materials and energy efficiency will be scaled up, following market analysis to identify the most successful approaches and their relevance to the CE context in Cambodia. Scaling up may include widening the implementation of the initiatives, for example encouraging more manufacturers to adopt CE approaches, or may include scaling up existing activities to increase their capacity to implement CE approaches for the entire operation. PA1.2 Promote production of alternatives to single-use plastic (SUP) Timescale Government Related DP Actions S M L agencies* initiatives

1. Increase production of multi-use plastic (MUP) and SUP alternatives a. Market analysis to define major SUPs, MUPs and MISTI, WB, ASEAN, sustainable alternatives in the country and region NCSD, MoE, Private Sectors b. Engage the private sector manufacturers in MoC, MEF, ASEAN promoting production of MUP and alternatives MoEYS, MoT, MoI c. Improve public awareness to support the market WB, UNDP d. Develop specific SOP

2. Draft and enact regulations on SUP items a. Update sub-decree 168 on plastic bags EU Switch Asia MoE, NCSD, UNDP, WB, b. Sub-decree to regulate single-use plastic products MEF, MoC, ASEAN, Private (e.g. straws, expandable polystyrene) in draft MoH, MoWA Sectors already

3. Provide economic incentives for alternative and sustainable products a. Identify necessary economic incentives (e.g. tax MEF, MoE, incentives and subsidies) NCSD, b. Implement these incentives MISTI Urgent interventions are required to mitigate the harmful impacts of plastic, which does not biodegrade easily and stays in the environment for hundreds of years. In marine areas, many mammals, fish, and birds suffer from ingesting plastic or becoming entangled in plastic materials. More than 90% of all birds and fish are reported to have plastic particles, known as microplastic, in their stomachs. Microplastic accumulates and passes through the food chain to human bodies, while the actual impacts on public heath from ingesting plastic remain unknown. Uncollected single-use plastics (SUP), such as plastic film bags, accumulate in urban drainage channels. This leads to flood risks and public health risks from stagnant water, for instance by resulting in the increase of mosquito breeding grounds. This PA seeks to avoid and mitigate the adverse impacts from SUP. Following market analysis on the current market for SUP and alternatives, the PA develops appropriate regulatory measure to restrict the import, manufacture, and use of specific SUP items and to promote use of alternatives to SUPs. Making use of existing resources in country to the extent possible, Cambodia can adopt a twin approach to supporting SUP alternatives including MUP. This entails first developing SUP alternatives through working with manufacturers (e.g. manufacturers of cardboard food containers or waxed paper food bags) and second, expanding the market through potential financial incentives such as tax breaks to alternative industries to encourage end users to switch to SUP alternatives. These actions are supported in tandem with PA 2.1. This PA presents a crucial opportunity to increase the recycled content of locally made goods, through the use of recycled raw materials in the development of SUP alternatives. This can include the use of recycled plastic to make durable shopping baskets or recycled card in packaging. 22 National Circular Economy Strategy and Action Plan (2021) PA1.3 Promote greening of the transport and distribution network Timescale Government Related DP Actions S M L agencies* initiatives

1. Introduce financial incentives to increase low emission commercial vehicle use a. Identify incentives (e.g. import tax adjustments and plug-in grants for electric or hybrid vehicles) MEF, NCSD, b. Introduce incentives and increase awareness of MoE, MPWT, CCCA the incentives amongst commercial and private MoC, MoI vehicle sector stakeholders to increase take-up of incentives MoE, MPWT, c. Introduce fuel quality standards MoC, MISTI, MME

2. Develop electric vehicle infrastructure required for charging electric vehicles a. Research options and needs analysis including MPWT, engagement of stakeholders regarding MME, MoC, CCCA commercial electric vehicles and private vehicles MoI, CDC, GGGI, Private including electric two-wheeled motorbikes EDC,MoE, sector b. Develop and implement infrastructure plan MIST

3. Increase reusable and sustainable packaging and reduce SUP packaging in the distribution and delivery services a. Market analysis and options assessment for Private sectors, increasing reusable /sustainable packaging MISTI, MoE, DPs, UNDP, MoC, MOI, UNEP, b. Promote innovations for reusable and sustainable MoT, MAFF, UNIDO, packaging through initial selected distribution MPWT Research private sector businesses. Institutes The first priority is to introduce financial measures to promote low emission vehicle use (e.g. import tax adjustments and plug-in grants for electric or hybrid vehicles). This is in parallel with existing and ongoing Government initiatives to improve vehicle emissions standards and their enforcement for all fuel types. Moreover, fuel quality standards will be introduced to promote more efficient and clean burning fuels. These efforts will be further supported by development of infrastructure to enable uptake of electric or hybrid commercial vehicles, in line with the global shift from petrol and diesel vehicles; globally, electric ‘light commercial vehicles’ are anticipated to increase significantly from 3 million in 2020 to 27 million in

203040. In addition, the benefits of switching to electric two-wheeled motorbikes and scooters will be capitalised on, with efforts to introduce incentives for private vehicle users to move away from petrol motorbikes to electric. Two-wheeled motorised transport is the most common mode of private vehicle in Cambodia, with motorbikes offering a more affordable option than cars for the majority of people, in addition to increased flexibility in both urban and rural locations. In 2016 Cambodia had over 2.7 million motorbikes registered41 and in 2019 alone, over half a million newly registered motorbikes were recorded by the Ministry of Public Works and Transport, as compared to 16,000 heavy vehicles (commercial) and 93,000 cars.[2] Through encouraging a switch to electric vehicles for private use as well as commercial, GHG emission reduction and air quality benefits will be realised. Packaging is essential for the containment and handling of goods from the point of manufacture to the point of use. This PA promotes innovative opportunities to increase reusable and sustainable packaging and reduce single-use plastic packaging in the distribution network and delivery services. For instance, measures to reduce waste may include encouraging alternatives to single-use plastic pallet wrap or plastic bags for bulk transport of goods such as biodegradable materials. 40 IEA (2019) Global EV Outlook 2019: Scaling up the transition to electric mobility 41 3.2M cars, motorbikes registered | Phnom Penh Post 23 PA1.4 Develop and support markets using recycled feedstock in production Timescale Government Related DP S M L agencies* initiatives

1. Identify and promote existing and innovative recycled products in Cambodia and the region a. Research existing and new recycled products in MISTI, MoC, UNEP, SE Asia MFAIC, Research b. Promote appropriate products through MISTI, MoI, Institutes, commercial private sector stakeholders (e.g. MoT, MAFF UNIDO recycled product manufacturers or distributers)

2. Develop quality standards for recycled products a. Develop quality standards for organic UNDP, other composting MoE, MISTI, DPs, Research b. Develop quality standards for plastic recycled MAFF Institutes, products Comped c. Develop quality standards for other products

3. Support more efficient and modern equipment for processing recyclables and organic materials MISTI, MoC, UNIDO, a. Support for plastic and organic recycling facilities MoE, MEF. GGGI, Privates in Battambang CDC Sector b. Subsidies or tax breaks for modern equipment MoE, MEF

4. Support industries to recover materials as feedstock, increasing the recycled content of products Research a. Identify relevant businesses and industry sectors MISTI, MoE, Institutes MoC, MAFF, b. Provide required support (e.g. finance, feedstock MoT, MEF quality or volume) This PA seeks to support Cambodia in becoming a trusted supplier of reprocessed materials with a consistent supply and low contamination rates, and a more stable market for reprocessed materials. It is vital to encourage recyclable materials, such as plastic, organic waste, metal, and glass, to be collected and reprocessed for use as a production feedstock (linked to PA 3.2). Recycling market development and support is critical for both reprocessors, producing a feedstock from recycled materials, and manufacturers using the reprocessed material. This PA supports market development in tandem with increasing collection of recyclable materials, as well as development of high- quality standards for these materials, including plastic and organic compost, to assure market trust. Further support will be provided for more efficient and modern equipment for processing recyclables and organic materials to improve their operation capacity and business competitiveness. This modern equipment will benefit industries in Cambodia, which manufacture products that could use recycled content. Technical, marketing, or financial support will be provided to these manufacturing industries to develop their capacity for using higher levels of recycled materials in products. This can include support for a wide range of industries and products, from using recycled plastic in rainwater gutters and pipes to using crushed glass as an aggregate in concrete. PA1.5 Develop Extended Producer Responsibility (EPR) schemes and plastic production standards Timescale Government Related DP Actions S M L agencies* initiatives

1. Draft and enact regulations on EPR a. Conduct extensive analysis on EPR in the region, WB, UNDP, as well as plastic production in Cambodia and MoE, NCSD, Private Sectors, barriers to recycling MISTI, MoC, Research b. Identify appropriate EPR measures and assess CDC Institutes feasibility 24 National Circular Economy Strategy and Action Plan (2021) c. Enact regulations to implement appropriate measures

2. Create take-back programmes operated by or on behalf of manufacturers a. Identify and engage with relevant manufacturers to MISTI, MEF, WB, UNDP, identify areas of collaboration MoE, MoC, Private Sectors, MoLVT, Research b. Develop and implement take-back initiatives CDC, Institutes MLMUPC

3. Develop and implement the production standard of plastic product to increase the recyclability of plastic products a. Develop standards WB, UNDP, MoE, MISTI, Private sectors, b. Implement standards MoT Research Institutes Extended Producer Responsibility (EPR) is a mechanism to ensure product manufacturers, importers, and sellers are held responsible for the waste they generate through their business activities, and that they remain accountable for their products and associated packaging even beyond the point of sale. EPR is a tool that will support the Cambodian economy’s move towards progressive resource management. Additionally, at the production stage, plastic products need to be designed and produced in a way that ensures they can be easily recycled. This PA entails development of legislative frameworks for both plastic production standards and EPR to encourage recycling by the product producer and to ensure the products are designed for reuse or recyclability. It will create standards for production to increase recycling rates and support programmes for facilitating the movement of used products back to the seller or manufacturer. This can include schemes to enforce manufacturers of packaging to accept the return of their packaging for recycling, or sellers to accept the return of goods such as electronic and electrical waste items for recycling or refurbishment. EPR systems are complex. Therefore, this PA will be based on sound analysis of practical EPR options both nationally and within the region. The feasibility of identified options will be assessed and if they are taken forward, the EPR options will be supported by appropriate regulatory measures. PA1.6 Develop eco-industrial parks Timescale Government Related DP Actions S M L agencies* initiatives

1. Assess appropriate types of infrastructure and services for eco-industrial park Private Sectors, a. Review existing EIA requirements for industrial MoE, MISTI Research zones to find areas for improvement Institutes b. Identify requirements for eco-industrial park MEF, MoE, ADB, Private using national and regional experience MoInfo, Sectors, MoPWT, c. Develop a financial plan to cover capital and Research MLMUPC, operational costs Institutes CDC, MISTI

2. Create eco-industrial park industrial and recycling clusters to enable the circular use of materials CDC, MISTI, a. Identify key private sector stakeholders and Private Sectors, MoE conduct regional research on eco-industrial park Research MLMUPC, successes Institutes MEF MISTI, MoE b. Facilitate provision of land for waste/resource MLMUPC, processing facilities MEF c. Develop detailed implementation plan building MISTI, MoE, on existing SEZs, including environmental MEF mitigation measures MoE, CDC, d. Operationalise eco-industrial parks MEF MISTI 25 As businesses in the waste and resource recovery sectors grow, creating efficiently performing eco- industrial parks using high technology is an integral part of the move towards a circular economy. The PA will develop and promote efficiencies of eco-parks through sharing and exchanging resources and developing a highly skilled workforce in an industrial cluster. Initially, the PA will identify the infrastructure requirements for eco-industrial parks appropriate for the national context and primarily building on the existing SEZ model. This will enable development of a realistic financial plan which addresses the capital and operational costs necessary for the PA. The creation of eco-industrial parks will require close cooperation and inputs from private sector stakeholders, while building on lessons learned from successes within the region. Following the identification of suitable locations, an implementation plan will be developed that ensures robust environmental protection. This will be a long-term intervention as it requires a high-level political decision to create eco-industrial parks, in addition to the acquisition of both land and financing to support the development. Once eco-industrial parks are operationalised, the outcome of this PA is a SEZ that is able to collect, reprocess and reuse plastics and other waste materials generated on-site, while minimising adverse environmental impacts. SO2: Promote Sustainable Consumption and Effective Reuse and Repair SO2 adopts a two-pronged approach to realise waste prevention at source, which is the most preferred option in the waste hierarchy. This objective is firstly achieved through more sustainable consumption and substitution of less sustainable SUP for more sustainable products, and secondly through support to businesses for the reuse and repair of products. In line with the waste hierarchy, it is environmentally a better option to repair and reuse a product than it is to recycle it. Repair and reuse retains a product’s value by keeping it in use for longer and avoids or delays the need for recycling, which is lower on the waste hierarchy. PA2.1 Reduce consumption of single-use plastic (SUP) and other single-use materials Timescale Government Related DP Actions S M L agencies initiatives

1. Reduce use of SUP and other single-use materials in target businesses a. Identify appropriate alternatives with MoE, MISTI, stakeholders from national and regional suppliers MoT, MEF, (SO1) MoI, MoFAIC, UNDP, WB, b. Promote use of MUP and alternatives in target MoH, MoC, ADB private sector businesses (hotels, restaurants and NCDDS, cafes) MWA, MRC, MoYES MoInf

2. Reduce use of SUP and promote use of sustainable products among end consumers a. Identify appropriate and available alternatives for MoE, NCSD, consumers nationally and regionally (e.g. use of MoEYS, reusable food and drink containers or cotton NCDDS, MoI, UNDP, WB, shopping bags) MoT, MoH, GGGI b. Integrate use of alternatives into public awareness MoC, MWA, communications (SO5) MoInf This PA will actively promote SUP reduction through two target actors in order to lower consumption and improve waste prevention. The first target actor is major private sector businesses such as food and beverage, hospitality, and garment sector businesses, which are reliant on SUP for their services and daily operations. The PA entails raising awareness of the private sector to its vital role in reducing the use of SUP and other single-use materials and increasing the use of reusable/sustainable products (linked to the PA 1.2). The second target actor is end consumers, primarily the public. Awareness raising activities will be implemented to inform consumers about negative impacts of the use of SUP (e.g. plastic bags, bottles, 26 National Circular Economy Strategy and Action Plan (2021) expanded polystyrene foam, and straws). These activities will promote a range of solutions for consumers to use (e.g. use of reusable food and drink containers or personal shopping bags). The PA will further support collaboration between private and public sectors through promoting proven mechanisms, for example lower price incentives for the provision of reusable containers such as coffee cups (linked with the SO5). PA2.2 Promote reuse and repair business models Timescale Governmen Related DP Actions S M L t agencies* initiatives

1. Promote the benefits of repair to consumers to reduce waste generation at source a. Identify key messages for public awareness on UNIDO, sectors suitable for reuse and repair (e.g. MISTI, MoE, vehicles) MoEYS, UNDP b. Develop a communication strategy to MoIF, SNAs, disseminate benefits/costs of reuse and repair MoLVT, c. Integrate the above strategy into MPT communications campaigns (SO5)

2. Develop networks of reuse and repair businesses to meet consumers’ needs a. Develop relevant regulations to promote reuse and repair, ensuring environmental and public health and safety MoLVT, UNDP, WB, b. Identify reuse and repair MSMEs nationally and MISTI, MEF, upcycling opportunities MoE, MoC GIZ, ILO c. Create, publicise and promote network to inform consumers

3. Identify and support sectors to promote business models for product sharing and product renting a. Market analysis nationally and regionally CCC, b. Use analysis to identify appropriate models MISTI, MoE, MEF, MoC, WIPO (Work, MoLVT, Intellectual c. Develop and implement proven models MoI, MoWA Property), UNIDO This PA promotes reuse and repair of products to give used products a second life before they are disposed of as waste. Reuse and repair practices entail cleaning, repairing or refurbishing products or their parts. Building on the already existing informal repair sector, this PA supports reuse and repair, for example of electronic and electrical equipment as well as vehicles. Reuse and repair will be promoted through information campaigns that make visible its financial, environmental, and social benefits to consumers, and the development of a network of related businesses to meet consumers’ needs. The PA will also identify and support sectors to promote alternative business models such as: product sharing and product renting. Examples include businesses that rent reusable crockery and glasses for mass catering events such as weddings, businesses that rent goods that are used rarely instead of buying them such as power tools, or operations that support sharing and renting modes of transport such as bicycles or cars instead of owning them42. 42 In the UK a cars are parked for an average of 96% of the time meaning their resource inputs e.g. plastic, metal, rubber, are only benefiting the owner 4% of the time 27 SO3: Enhance Waste Collection and Recycling Ensuring full and improved waste collection services across the country for villages, towns, cities, and businesses is an urgent priority. It is vital that waste is collected and transported to a safe site for appropriate treatments without impact on public health or the environment. SO3 takes additional steps to build the foundations of a circular economy through improvements in recycling. Crucial to this is the enforcement of regulations to separate waste by material type at source. This step is a precondition for recycling industries to be viable by being able to reduce their operational costs, maintain high quality recycled products, and sustain and scale up their businesses. PA3.1 Strengthen fee collection and effective waste collection Timescale Government Related DP Actions S M L agencies* initiatives

1. Introduce a model waste collection contract to expand municipal waste collection service coverage a. Review and analyse barriers to waste service delivery and contract implementation b. Engage private sector waste collection companies and MSMEs MoE43, ADB, WB, TAF, c. Develop collection contract guidance, collection NCSD, MoI, GGGI schedule support and model incentivising SNAs, MEF collection and recycling and performance management d. Roll out contract with subnational authorities

2. Introduce a model waste collection contract with weight-based fees for Special Economic Zones (SEZ) a. Review current industrial waste contracts b. Engage private sector waste collection companies MoE, MEF, and industrial waste producers in SEZs MISTI, MoI, WB, ADB, c. Develop collection model based on weight-based SNAs, CDC, UNDP fee and performance management MoC, d. Roll out contract within SEZs

3. Establish effective waste service user fee collection system a. Engage service users and subnational authorities as the fee collector (depending on fee collection mechanism, MEF or MME) MEF, MME, WB,GGGI, b. Define locally appropriate fee level and MoE, UNDP mechanism for fee collection SNAs c. Roll out of fee collection after service improvements Improved waste collection coverage in Cambodia requires adequate financial resources collected from households, businesses and industries, in addition to central budget support. Waste service user fees are outlined in legislation, but their implementation and actual collection are limited, leading to insufficient funds for waste collection. A model waste collection contract for municipal waste and waste from SEZs will be the foundation to long- term sustainable national waste collection. Improvements in waste collection contracts will lead to higher collection rates for industrial waste in SEZs and household municipal waste through ensuring the service specified in the contract is delivered through contract mechanisms such as clear performance standards and contract monitoring, and weight-based charging in SEZs. Collection contracts which incentivise service coverage and recycling will lead to a geographically wider service, separate collection of recyclables, and higher recycling rates. 43 MoE Lead but SNAs will be the main implementor. 28 National Circular Economy Strategy and Action Plan (2021) In the future, fees will be collected by subnational authorities rather than by waste collection companies. Effective approaches will be adopted such as nationwide options for residential and commercial user fee collection through existing means such as electricity bills or innovative technology-based solutions, building on the existing approach of user fees to be paid electronically through banks. The collection of fees will be matched by an improvement in waste collection service delivery. PA3.2 Improve waste segregation and recycling Timescale Government Related DP Actions S M L agencies* initiatives

1. Pilot segregated waste collection (recycling and residual waste) for industrial and municipal waste a. Pilot in Battambang for municipal waste for UNIDO, GGGI plastic and organic recycling COMPED,WB b. Pilot in Kep for municipal waste including MoE, NCSD, UNDP, GGGI, TAF, community recyclables collection options MoI, NCDDS, HBS c. Pilot(s) for municipal waste in other province(s) SNAs, MISTI, BORDA MoPWT, Private sector d. Pilot with a garment waste producer and cement MoWA, (GOMI, H&M, industry MoEYS, MoInf Adidas, Chip Mong Insee) e. Pilot e-waste recycling (e.g. electronics, batteries)

2. Implement an informal waste picker engagement strategy, starting with above pilot initiatives a. Develop a strategy to engage informal waste MoE, NCSD, pickers MoLVT, UNDP, WB, PIN, MoWA, SNAs, CSARO, BORDA b. Implement the strategy MoH, MoSVY, MoEYS, MoInfo

3. Implement economic incentives for composting, recycling and reprocessing, including e-waste a. Introduce landfill gate fee (see SO4) to divert MoE, MEF, ADB, WB (In PP), recyclables from landfills MISTI, CDC, UNDP, COMPED, b. Implement and provide financial incentives (e.g. MME, MoH, subsidies, VAT exemptions) MoI, SNAs, CSARO

4. Develop emission standards and guidance for recycling and reprocessing industries a. Develop guidelines for treating, storing, and Thai Government, recycling demolished construction materials and MoE, MISTI, Chinese Company, municipal waste MLMUPC, b. Develop emission standards and monitoring NCSD, SNAs GGGI systems c. Monitor and enforce the standards

5. Support recycling initiatives and facility capacity improvements MoE, MoF UNIDO, GGGI a. Provide appropriate financial support (e.g. (financial body), EUROCham business/green loans and subsidies) MISTI and MoE Association of Bank (technical) of Cambodia, UNDP, b. Facilitate technical support to build in-country MoLVT, MoE, COMPED, CSARO skills MISTI, c. Develop and enact regulations to enable deposit MoE, MoI, return schemes for plastic, metal, and glass NCDDS Following full waste collection, segregated waste is another prerequisite for promoting recycling, improved organic waste management, and WtE interventions. Pilot initiatives will be supported to test simple waste sorting (such as organic and non-organic waste) and separate waste collection for recycling and residual waste to develop lessons learned for a wider expansion. This intervention first targets pilots for industrial waste for which sorting is implemented relatively easily compared to municipal waste. Subsequently, pilots on municipal waste will be supported with an initial focus on smaller cities such as those in Battambang and Kep province to test and demonstrate viable 29 financial and operational models of recycling for replication and scaling. An additional pilot(s) will be considered for recycling of e-waste such as electronics and batteries. Separate collection of recyclable wastes will be further supported through exploring options for community collection points for recycling. For these pilots, a strategy to fully engage informal waste pickers in recycling operations will be developed and implemented. Building on the lessons learned in the pilot, the PA will identify longer-term options for schemes to effectively collect recyclable materials at communal locations, instead of on an individual household basis. Given the high operational costs of recycling businesses including plastic recycling, e-waste management, and organics treatment, which hinder its business sustainability and growth, this PA seeks to create an enabling environment to reduce costs and to improve their business profitability. One priority measure is to increase landfill gate fees to incentivise waste collectors to divert waste from landfills to recycling industries. Another is economic incentives such as subsidies and VAT exemptions for recycling, reprocessing, and composting. Additional financial support will be sought, such as green loans, for the acquisition of modern efficient equipment to improve processing capacities (e.g. organic composting) along with technical support to build in-country skills and knowledge required for high tech recycling industries. Further support will be provided to strengthen the overall quality of recycled products and to expand market share. This includes development and enforcement of emission standards and guidance for recycling and reprocessing industries to avoid and minimize negative environmental and health impacts. Quality and safety standards will be developed and implemented for recycled products such as organic compost to build market trust in them. In addition, a legislative framework for deposit return schemes will be enacted. This will set out a basis for formalising the financial, institutional, and logistical arrangements for the collection of materials on which a deposit will be paid, such as for glass bottles or plastic bottles. PA3.3 Improve organic waste management Timescale Government Related DP S M L agencies* initiatives

1. Analyse market potential and develop quality and safety standards IGES, MoE, MoI, MoC, a. Analysis of the compost market and uses COMPED, SNAs, MISTI, including industrial, agricultural, and land NEXUS, MAFF, MoT, restoration uses and existing initiatives KAS, JICA, MoWA, MoP IFAD, FAO b. Develop a business model with target sectors and FAO, GGGI uses for piloting c. Develop quality and safety standards and IGES, MoE, MAFF, monitoring systems for organic waste treatment COMPED, MISTI, SNAs outputs (e.g. digestate and compost) GGGI, FAO d. Implement a robust environmental monitoring approach

2. Pilot and scale up existing initiatives for Anaerobic Digestion (AD) and composting a. Pilot AD facility for agricultural waste MAFF (national UNIDO, b. Pilot green waste / market waste for commercial biodigester WB, GIZ, composting facility programme), PIN, GGGI, MoE, NCDDS, Private c. Scale up proven approaches for wider application SNAs, MoI, MoT, Sectors MoWA, MoInfo Organic waste has significant negative impacts on our health and environment. Uncontrolled organic waste biodegrades to pollute potable water sources and surface water bodies, further attracting disease vectors 30 National Circular Economy Strategy and Action Plan (2021) such as flies. It causes odour and dust nuisance as it decays and dries. Organic waste is also a main source of methane emission, a potent greenhouse gas, constituting 11% of all global CH4 emissions44. In Cambodia, sources of organic waste include the municipal waste stream which is 76% organic45, comprising waste food, cardboard and garden vegetation from households. The agriculture and fishery sectors also produce significant organic wastes streams from growing and processing. This PA pilots and implements key approaches to organic waste management, Anaerobic Digestion (AD), and quality composting to ensure organic waste is not harmful to human health or the environment. AD is a fully contained methane generating process which recovers the gas for energy production. Composting degrades waste aerobically, importantly without producing methane. Prior to piloting, a market analysis will be conducted to assess the likelihood that the products will be utilised and to develop a viable business model, supported by robust safety standards. PA3.4 Provide effective business support for waste and resource sector Timescale Government Related DP Actions S M L agencies* initiatives

1. Clarify the roles and responsibilities of national and subnational governments a. Clarify the roles and responsibilities between national and subnational governments in MoE, MoI, promoting recycling and composting and link to NCDDS, SNAs, WB, IGES capacity building (SO5) MoC, MoT, MAFF, GGGI b. Provide information and capacity building MoWA, MISTI training for undertaking the roles and responsibilities

2. Collect and disseminate data on different types of waste to inform governments and businesses a. Establish waste data collection focal point / team WB, GA and data requirements MoE, MEF, CDC, Circular, HBS b. Disseminate data collection requirements to NCDDS, MoI, subnational authorities and private sector SNAs, MoP, MoIF, c. Use data to inform relevant Ministries to provide MAFF market insight and business support

3. Develop a Business Registration Guidance Document for government-related information for the waste and resource sector a. Clarify and streamline procedures for approvals, MoE, NCSD, MoC, permits, Environmental Impact Assessments UNDP, WB, MISTI, SNAs (EIAs) for waste/resource sector businesses (e.g ADB, GGGI CDC, MISTI, recycling, organic waste treatment) NCDDS, , MAFF, b. Develop a Business Registration Guidance MoInfo, MEF Document (check WtE)

4. Create business and investor matchmaking platforms a. Identify private sector stakeholders GIZ, b. Identify national, regional, and international EUROCham, funding sources CDC, MoC, MISTI, AmCham, NCSD, MoE, MEF, Cambodia c. Develop open matching platform (e.g. registration MAFF Chamber of process) Commerce GGGI Waste is a valuable resource. When collected and treated, it is no longer ‘waste’ to be discarded, but is a resource to be used in new products, giving rise to a new ‘resource’ sector. This PA supports waste and resource management sector businesses through facilitating business support, development, and finance with a breadth of activities. 44 Singh, C.K., Kumar, A. & Roy, S.S. Quantitative analysis of the methane gas emissions from municipal solid waste in India. Sci Rep 8, 2913 (2018). https://doi.org/10.1038/s41598-018-21326-9 45 Ricardo (2018) for UNDP Solid Waste Management in Cambodia – National Context. 31 The recent decentralization reform for waste management has been successful in transferring power and authority from central to subnational levels for waste management. Yet continued efforts should be undertaken to further clarify the roles and responsibilities of national and subnational governments along with capacity building support. This ensures that authorities can support business, in terms of finance, data, or other mechanisms. Importantly for businesses, this PA assists the private sector to understand the responsibilities of the government; clarity of roles will ensure that actions around waste and resource sector development are implemented and responsible parties are accountable. Essential to the development of a long-term viable business is the accessibility of market information such as material volumes and flows, national and international market prices, and key waste producers. The PA strengthens collection and timely provision of accurate data on waste to guide investment decisions on waste and resource sector businesses. In order to make it easier for a new waste or resource business entering the market, the processes for approvals, permits and the Environment Impact Assessment (EIA) will be clarified and streamlined. While the level of EIA requirements (which are robust and in accordance with international standards) will not be reduced, its application and approvals will be made more efficient. In addition, guidance on registration of waste and resource-related business will be improved through a simple ‘one stop shop’ to inform businesses about the requirements and where to go for information and support. To further assist new business development and expansion, investment in national companies from both domestic and international investor sources will be supported through developing matchmaking platforms to facilitate relationships between investors and the private sector. This may take the form of specific internet portals for investors to offer finance to domestic waste and resource related companies requiring additional investment. The platform can be integrated into already established programs such as the annual Government-Private Sector Forum. SO4: Ensure Effective Management of Residual Waste SO4 focuses on effective management of residual waste. SO4 strengthens the management of residual waste through improvements to the current waste to land disposal approach, which is primarily in dumpsites rather than engineered landfills, and the emerging waste to energy industry. PA4.1 Improve landfill disposal and operations Timescale Government Related DP Actions S M L agencies* initiatives

1. Design and invest in new controlled or sanitary landfills at the subnational level a. Design model for controlled or sanitary landfill for Cambodia including financial and technical ADB, WB details MoE, MEF, MoI, b. Design model for sanitary landfill for Cambodia NCDDS, SNAs, including financial and technical details NCSD, c. Pilot in Kep for sanitary landfill management MPWT ADB d. Invest in landfills with a larger catchment area to ADB, WB achieve economies of scale

2. Adjust landfill weight-based gate fee to the optimal level to support landfill operational costs and to promote diversion of waste into recycling a. Conduct financial analysis to determine optimum WB, JICA? MoE, MEF, MoI, gate fee for landfills KOICA? NCDDS, SNAs b. Enforce the implementation and collection of gate MPWT fees

3. Update and enforce residual waste disposal legislation 32 National Circular Economy Strategy and Action Plan (2021) a. Update residual waste disposal legislation to MoE, MEF, MoI, encourage economies of scale in landfill WB, JICA, NCDDS, NCSD, operations and improved landfill management KOICA MPWT (economic including post-closure corridor project) b. Enforce residual waste disposal legislation Note: MoE: wastewater and pollution MPWT: constructions and infrastructures It is vital to improve site management with operational plans and basic management functions to address the public health and environmental risks of the current dumpsites for residual waste disposal. This PA accelerates landfill disposal and management improvements, by prioritising design and construction of appropriate landfills in alignment with ongoing investment in new landfills under ADB projects. The common design choice for many new sites in Cambodia has been controlled landfills as they do not require expensive and technologically challenging leachate treatment. However, more environmentally stringent sanitary landfills will be supported if economies of scale are achieved, coupled with adequate funding for maintenance of leachate treatment plants. Landfill operation will be further supported through increasing the landfill gate fee to fully cover the recurrent operational costs of the sites and to encourage diversion from landfill. Options to collect gate fees include a landfill tax to ensure a minimum gate fee regardless of whether the landfill site owner is private or public sector. The PA will develop and update an enabling regulatory framework to encourage larger-scale landfill sites capable of achieving the economies of scale and levels of environmental protection and management standards that cannot be obtained by small sites with low waste inputs. As an example, a small landfill site will require equipment such as a bulldozer or a weighbridge which may be needed to move or weigh waste for one hour a day, and a larger site will utilise a bulldozer for eight hours a day and use a weighbridge many times, making the purchase of the equipment far more cost effective. PA4.2 Support Waste to Energy for residual waste treatment Timescale Government Related DP Actions S M L agencies* initiatives

1. Conduct feasibility assessments for WtE options MME, MEF, GGGI on RDF a. Conduct study on financial profitability MME, CDC, from MSW, MoE, MISTI ADB on incineration to b. Conduct study on environmental impacts MoE, MME, energy of including waste reduction and air quality MIST municipal waste

2. Pilot initial WtE initiatives with positive financial returns and environmental impacts in terms of waste reduction and minimal impacts on air quality a. Pilot biodigesters for agricultural residuals in MAFF, ADB rural areas MME, MISTI b. Pilot large-scale WtE for garment and cement MME, MoE, EU Switch Asia, industries and RDF (e.g. H&M, Adidas, Chip MISTI GGGI Mong) MME, c. Pilot large-scale WtE interventions (municipal MISTI, EDC, ADB, KOICA waste) MoE, SNAs, GGGI MEF

3. Develop emission standards for all WtE facilities to minimize negative environmental and health impacts 33 a. Develop environmental and public health MoE, NCSD, standards for small-scale on-site WTE ADB, UNDP MME, MoH, incinerators (e.g. garment) including Refuse GGGI SNAs, MISTI Derived Fuel (RDF) sites MoE, NCSD, b. Develop environmental and public health MoH, MME, standards for large-scale WtE interventions ADB MoI, EDC, (municipal waste) SNAs c. Establish and operationalise a robust approach to MoE, MoH monitor environmental and health impacts for ADB MME, EDC, WtE facilities

4. Identify and provide required investments, equipment, infrastructures, economic incentives for WtE a. Identify required investments, equipment, infrastructures, economic incentives for WtE (e.g. MEF, CDC, ADB, GGGI subsidies, VAT exemptions). MoE, MME b. Implement these incentives ADB, GGGI

5. Develop enabling legislation for WtE a. Draft legislation to promote WtE (in addition to MoE, CDC, ADB SO3) MEF, EDC, MME, b. Enact legislation ADB MoLVT This PA works alongside existing developments in WtE investment to use waste as a fuel source, generating heat and electricity. These WTE initiatives may include but are not limited to large-scale centralized WtE processing facilities used for thermal treatment of municipal waste to generate electricity and large-scale industrial facilities using waste as a feedstock. As an example of the latter case, a cement company has already applied “co-processing” to process hazardous and non-hazardous waste. This refers to the use of waste as raw material, and as a source of energy to replace coal in cement production. In addition, decentralised small-scale WtE options to convert waste to energy are currently used by some garment factories, and smaller refused derived fuel (RDF) sites are being planned. This PA supports feasibility assessments of these various WtE options in terms of financial profitability and environmental impacts (e.g. waste reduction, air quality impacts). Pilots will be supported for WtE initiatives with positive financial returns and environmental impacts in terms of waste reduction and minimal impacts on air quality (e.g. RDF production and utilisation). Pilots will include small-scale biodigesters in rural areas to valorise and use agricultural organic waste for energy generation. Any WtE interventions should address inherent risks associated with contamination of air and soil as the operation entails combustion of waste to generate energy, with potential emission of pollutants in air and soil. Thus it is critical for WtE to ensure the development of emissions standards in accordance with international best practices and monitoring mechanisms to ensure adherence to the standards. Failure to enforce emissions standards can have significant public health and environmental ramifications. Financial mechanisms to encourage WtE investment and developments will be explored, as economic incentives as well as funding are essential for complex long-term WtE infrastructure developments. SO5: Enhance Crosscutting Stakeholder Engagement, Awareness and Capacity Building SO5 includes actions which encompass all value chains, required throughout the entire period of transition to a circular economy. Most Actions in this SO are required at the outset of every new activity, policy, or legislative instrument, and will need to be continued over the next 15 years. 34 National Circular Economy Strategy and Action Plan (2021) PA5.1 Improve CE awareness and environmental education Timescale Government Related DP Actions S M L agencies* initiatives

1. Create a platform of industry stakeholders to promote knowledge exchange and collaboration a. Identify relevant stakeholders for CE transition MoE, NCSD, CDC, MISTI, UNDP, KAS, b. Develop a network encouraging collaboration and MoLVT, USAID, TAF a knowledge exchange platform MoI, MoPT

2. Develop and update communication materials relevant to CE themes for the public MoE, NCSD MoEYS, a. Develop resonant public messages and MIF, UNDP, CCCA, communication materials in collaboration with MoPTC, WB, GGGI NGOs and development partners SNAs, MoI, MoT MoE, NCSD, b. Develop a dissemination programme and MoEYS,, implement through government website, social SNAs, MoT, media, and campaigns MIF, MoPTC, MoI

3. Improve environmental education a. Develop / update education materials for primary UNESCO, and secondary schools to integrate environmental MOEYS, USAID (GPL) issues MOE, NCSD, GGGI b. Integrate the new materials (e.g. supplemental MAFF, MoI UNDP, CCCA books) into the national curriculum. Improved knowledge is conducive to inducing behavioural change towards a circular economy. This PA promotes dissemination of information and raising awareness among all relevant stakeholders, while adopting a country-wide approach to ensure consistent messages on CE issues. The messages must be sustained in the long term as well as tailored to meet different types of audiences in order to be effective. Messages for the private sector and industry will be delivered through a stakeholder platform, encouraging industry specialists and academic experts to collaborate and exchange knowledge on innovations and developments. Messages will be pertinent to industry and may cover but not be limited to sustainable energy use and energy efficiency, sustainable consumption, design for repair and recycling, alternatives to SUP for efficient packaging, transport, and distribution. In collaboration with relevant NGOs and development partners, communication and outreach materials for citizens will be developed and continuously updated to share key messages to promote a CE approach. These messages may cover but not be limited to issues pertaining to sustainable consumption and the alternatives available, waste prevention, reuse, repair, recycling, household energy saving and legislation compliance. Information will be disseminated through various communication channels such as the government websites, newspapers, posters, and social media. In addition, strategic campaigns will be promoted in partnership with development partners, the private sector, academic institutions, and celebrities. Due to the urgency related to tackling plastic waste, the first five years of interventions will focus on raising awareness of issues related to plastic waste and promoting sustainable consumption to reduce single-use plastic usage and to increase the use of reusable products or single-use alternatives to plastic. Environmental education is another crucial factor for inducing positive behavioural change. It is important that Cambodian students are aware of the environment and how human actions impact the environment and country, so that they can take actions to shape a sustainable future. This PA starts with developing and updating appropriate environmental education materials to integrate environmental issues (including climate change, sustainable consumption, circular economy, energy, and recycling) into primary and secondary school curriculums. The outcome will be school graduates with full knowledge of good 35 environmental behaviours, who can contribute directly to the circular economy through promoting sustainable consumption in their daily lives and in their future employment opportunities. PA5.2 Enhance capacity and skills and employment opportunities of all stakeholders Timescale Government Related DP Actions S M L agencies* initiatives

1. Build the capacity of national and subnational governments for the management of waste operations a. Training needs analysis to identify skill requirements for the waste, resource, and energy WB, IGES, MoE, sectors (e.g. monitoring standards, enforcement of GGGI MoLVT, regulations, contracts, and standards) NCDDS, b. Develop training and capacity development MME, GGGI programme MoEYS, c. Implement long-term and comprehensive MoInf, MoI capacity development programme for relevant skills

2. Update capacity and skills of private sector waste and recycling facility operators for modern operations and to maximise employment opportunities a. Training needs analysis to identify skill WB, UNIDO, requirements for the waste, resource, and energy COMPED, MoE, sectors GGGI MoLVT, b. Develop training and capacity development MME, MoI, programme NCDDS c. With private sector support, implement skills and SNAs capacity development programme relevant to operators

3. Develop higher education services and provide training to the wider private sector a. Engage higher education universities and technical colleges MoEYS, b. Identify the skill requirements for efficient MoE, NCSD, production including energy / materials use, and MISTI, more advanced reprocessing and recycling RUPP, RUA, AFD, WB technologies ITC, MRD, c. Develop and deliver a curriculum to the wider MoLVT, waste, resource, and energy private sector MoP, MEF, businesses to maximise employment MAFF opportunities

4. Train people in the informal waste sector and small businesses for their effective participation in CE a. Analyse priorities and needs of the informal waste MoLVT, sector MoE, CSARO, TAF, b. Develop and deliver appropriate formal and NCDDS UNDP, UNIDO, informal training inclusive approaches SNAs, MoI, WB, KAS? considering people’s availability, literacy and MoT other specific requirements Meeting necessary knowledge and skill requirements is essential in order to implement actions towards a CE. The outcome of this will be that no one in the current resource, energy, and waste sector will be left behind as the sector develops and transitions towards a CE and quality and long-term employment opportunities will be realised. The first priority is to improve the technical capacity of relevant public sector, critical to implementing many actions for a CE. For instance, the Ministry of Environment, the National Committee for Sub-national Democratic Development (NCDDS), and subnational governments such as provincial, municipal, and district governments, have responsibility for, or input into, procuring and managing waste-related contracts including private sector contractors, that require monitoring and enforcement. Ministries including the 36 National Circular Economy Strategy and Action Plan (2021) Ministry of Economy and Finance and the Ministry of Mines and Energy also play crucial roles in advising the complex technical contractual requirements of delivering WtE. In addition, the public sector, in particular, subnational government, requires the wider knowledge and skills to support segregated waste collection and recycling and waste management planning, while taking financial, institutional, and technological factors into consideration. Initially, a training needs analysis will clearly identify gaps between current and required knowledge for a CE approach. A training programme to upskill the public sector may include but not be limited to waste services procurement, waste contract management, technical operations and maintenance, environmental monitoring and enforcement, segregated waste collections and recycling, and WtE. It is also imperative that any operators of waste and recycling sites are equipped with the specific knowledge and skills to operate and maintain their facilities to the design standard and avoid any public health and environmental hazards. Actions to support capacity and skills requirements in terms of waste treatment and technologies can include partnerships with regional businesses or academic institutions able to share skills or establishment of skills-based institutions to support professional development in the waste and resource sector. Operators of any landfill, recycling or composting facility or WtE plant will be required to have the technical skills to operate and maintain the sites at the design standard. Further actions will address the twin needs of higher education for future resource, energy, and waste managers, as well as practical training and education for the production and manufacturing industry. The higher education sector has an important role in meeting the skill requirements for a CE model such as industrial chemistry, engineering, or logistics tailored towards the energy, waste, and resource market. A CE will offer an increasing range of employment opportunities that will appeal to graduates with appropriate academic experience. Additional training and skills development for the design and manufacturing sector will be delivered. This is critical to foster innovation for production and delivery of goods and services, in adopting the use of more sustainable energy and materials and increasing efficiencies in energy and material inputs. Increased knowledge of CE benefits and new technologies will also help manufacturing business leaders to make informed decisions about applying a CE approach in their business strategies and operations. Furthermore, there are many existing small businesses and people working informally in the waste sector who will benefit from additional support and training to ensure their skills evolve as the CE evolves in Cambodia. This Action will ensure that training and upskilling for existing waste businesses including the informal waste sector is delivered, in order for all stakeholders to contribute to the transition to a CE. PA5.3 Promote private sector engagement for CE innovation and scaling up Timescale Government Related DP Actions S M L agencies* initiatives

1. Develop a private sector engagement strategy and mechanism to support their leadership a. Develop a private sector engagement strategy with key private sector businesses and UNDP stakeholders to identify technology, business, and MoE, NCSD innovation opportunities CDC, MEF, b. Design mechanisms to motivate the private sector MISTI, MoT, to adopt CE approaches (e.g. innovation fund, MoI, SNAs, rewards and incentives) MoLVT c. Implement approaches to engage the private sector in CE initiatives and actions

2. Pilot and upscale private sector CE innovations a. Identify pilots or new innovations (e.g. plastics, MoE, NCSD energy efficiency, sustainable energy, and MEF, MISTI, recycling) which can also contribute to MoT, SNAs, UNDP, GGGI employment creation, environmental benefits, CDC, MoC, and resource efficiencies MME 37 b. Implement pilots or innovations and develop GGGI business case for further private sector support c. Upscale proven approaches led by private sector partners Throughout the value chain, the private sector has a pivotal role in driving and scaling up business innovation, in accelerating a shift from a linear towards a circular economy. Their active engagement is crucial in adopting sustainable energy and resources, improving energy and resource efficiency, introducing alternatives to single-use items, promoting reuse, repair, and recycling, and operating landfill and WtE businesses. These businesses will also apply good international practice standards to minimize environmental impacts. An engagement strategy will be developed, using early input from stakeholders including industry, in order to ensure private sector buy-in for CE initiatives. Systematic collaboration with the private sector requires a comprehensive understanding of major features of their current business practices, drivers, and business innovation opportunities for creating a circular economy, in addition to a robust engagement strategy. Drivers for businesses to engage with the CE approach may be shaped by their willingness to improve environmental performance and to promote sustainable and viable business (e.g. corporate social responsibility), access to wider consumer markets, and skills development. The PA will identify technology, business, and innovation opportunities, drivers and motivations of the private sector, and the market and financial environments appropriate for business development. The strategy will reflect these findings and mechanisms for promoting effective means to ensure private sector’s long term and continuous engagement and buy-in to the CE approach. These may include CE innovation funds, or rewards and incentives. Several short-term, quick pilots and innovations will be supported in the priority areas of single-use plastic waste, energy efficiency, sustainable energy, and recycling to generate valuable lessons in innovative private sector CE involvement. These lessons will be used to upscale private sector CE innovations. This upscaling means both increasing the size of the innovation or widening its reach, ensuring that nationally, the entire country benefits from CE innovations, including secondary cities. Overall, these actions are selected and prioritised based on how appropriate they are for Cambodia now and in the future. Each Action will help to deliver the long-term goals outlined in this Plan. In addition, some short-term actions can be used to gain immediate momentum and support for the longer-term transition towards a circular economy approach.

8. FINANCING RESOURCES This CE Strategy and Action Plan has a considerably wide-ranging scope, it reaches many sectors of the economy and aims to benefit all sectors of society. Therefore, the financing of this Strategy and Action Plan is required to be equally far reaching and secure financial resources are needed to ensure delivery of the identified Actions. To this end, the Government will commit to: ● Ensuring efforts to identify and generate financial resources to implement and sustain CE Actions. ● Seeking opportunities for public-private partnerships to attain effective CE action delivery. ● Extending collaboration with external institutions (national institutions, regional institutions, development partners, and private sector entities) in order to attract development finance and long- term sustainable projects. ● Recruiting additional appropriate staff resources in relevant departments to ensure adequate resources are given to obtaining and sustaining finance for the CE Actions. 38 National Circular Economy Strategy and Action Plan (2021) The responsibility for developing a costed action plan and identifying financial support for the Actions within this Strategy and Action Plan will primarily be the responsibility of the Government Agency allocated to oversee implementation of the Action. Collaboration between ministries and departments will be encouraged in order to share knowledge including technical skills, allowing for an accurate costing to be developed, and to share information on potential finance partners. Potential funding sources are identified below, Table 3. The potential funding source Funding Source Examples National budget allocation to MoE, MEF Government / national funds Green Climate Fund (GCF) under the UNFCCC GEF STAR fund allocations Donors (multilateral and bilateral donors) including ADB, AFD, EU, GGGI, IFC, JICA, KOICA, Netherlands Development Cooperation, Development partner funds Sida, USAID, World Bank Nonprofit organisations including The Asia Foundation Private sector investments for infrastructure and new CE businesses Investments and cost sharing Collaborative implementation with international private sector with interest in Cambodia Landfill tax Single-use plastic bag surcharge Taxes and surcharges User fees for waste collection services Import surcharges on single-use materials EIA fees Operating permits for waste/recycling facilities Permits, fees, and licenses Operating permits for factory boilers Legal fines for pollution and non-compliance

9. MONITORING AND EVALUATION The implementation for the CE Strategy and Action Plan spans a 15-year period from 2020. Within this time span, the CE Strategy and Action Plan will be reviewed initially after one year, identifying any initial challenges and adjustments, then subsequently every 5 years to evaluate progress and implement corrections as required to ensure the Strategy and Action Plan remains on track. A monitoring and evaluation framework with indicators and targets [ANNEX I] will be used to monitor implementation and can subsequently be used to evaluate the impacts of implementation when specific actions are completed. Completed activities will be monitored during the next monitoring period to confirm that any interventions, such as businesses or waste sites which should be in operation following completion of the Priority Action, are still operational and functioning as intended. This will monitor the financial and operational sustainability of the Priority Actions. In implementing the CE Strategy and Action Plan, the relevant responsible ministry or department will ensure that it develops departmental annual operating plans which integrate the Priority Actions that the department will either lead or support. The monitoring and reporting methodology and formats will be standardized to ensure consistent application to accurately observe progress and ensure meaningful adaptations are implemented where required. The reports presenting monitoring results will be incorporated in relevant national reports and key recommendations implemented as part of adopting adaptive management strategies. 39 Table 4. ANNEX I Proposed monitoring and evaluation framework (for discussion and further inputs) SO1: Increase Efficient Use of Raw Materials, and Promote Sustainable Design, Production, Remanufacturing and Distribution Priority Timeline (2021 – 2035) Lead Budget Target Output Output Indicator Target 2026- 2031- DP/Priva Area Year 2021 2022 2023 2024 2025 Agencies Gov’t Other Total 2030 2035 te Sector Number of pilots with 1.1.1 Pilot energy benchmarks initiatives and MME, supported in the: benchmarks are MoE, (a) Garment (a) 1 implemented for MISTI, industry (b) 1 2025 garment, NCSD, (b) Construction/pro (c) 1 construction/ MoT perty industry property, and (c) Hospitality hospitality sectors PA1.1 industry Promote use Number of energy of efficiency regulations (a) 1 policy sustainable 1.1.2 Energy enacted/issued in the (b) 1 sub- energy and efficiency form of: MME, decree materials enabling (a) Policies 2025 NCSD, (c) 2 prakas and energy regulations are in (b) Sub-decrees MISTI (d) 3 technical efficiency place (c) Prakas guidelines (d) Technical guidelines 1.1.3 Sustainable energy and Number of successful materials and energy and material MME, 6 interventions 2030 energy efficiency interventions scaled MISTI interventions are up upscaled Number of MISTI, 1.2.1 Production manufacturers with a NCSD, PA1.2 of multi-use 20% increase in 10 MoE, Promote plastic and SUP output of multi-use 2025 manufacturers MoC, production alternatives is plastic and SUP MEF, of increased alternatives over 2021 MoEYS alternatives baseline to single- MoE, use plastic 1.2.2 SUP 2 sub-decrees Number of SUP sub- NCSD, regulations are in (sub-decree 168 2021 decrees in place MEF, place updated and MoC 40 National Circular Economy Strategy and Action Plan (2021) sub-decree on SUP enacted) 1.2.3 Economic incentives for alternative and Number of businesses MEF, sustainable that receive incentives MoE, 30 businesses 2030 products are for alternative and NCSD, available and sustainable products MISTI widely used by businesses 1.3.1 Financial MEF, incentives to Number of 2 NCSD, increase low regulations in place to (regulations for MoE, emission promote energy tax reduction 2025 MPWT commercial efficient and hybrid for these MoE, vehicle use are in vehicles vehicles) MPWT PA1.3 place Promote 1.3.2 Electric Percent increase in greening of commercial infrastructure for 10% increase in MPWT, the vehicle electric commercial 2030 infrastructure MME transport infrastructure vehicles over 2021 and increases baseline distribution 1.3.3 Reusable network and sustainable Number of businesses packaging use adopting innovations MISTI, increases and related to sustainable 20 businesses 2025 MoE, SUP packaging is distribution and MoC reduced in delivery packaging distribution and delivery services PA1.4 Number of private 1.4.1 National and Develop sector stakeholders regional existing MoC, and support actively using and innovative 20 stakeholders 2030 MFAIC, markets innovative recycled recycled products MISTI using products from the are promoted recycled country or region 41 feedstock in Number of quality production standards issued for: (a) Products made of composted 1.4.2 Quality (a) 2 quality (a) and recycled standards for standards 2025 MoE, plastic content recycled products (b) 2 quality (b) MISTI (b) Products made are implemented standards 2030 of other recycled materials e.g. glass, metal, paper/card (a) Number of plastic recycling pilots operational and 1.4.3 Support for functioning more efficient and (b) Number of modern businesses (a) 1 pilot in MISTI, equipment for receiving Battambang MoC, 2023 processing subsidies or tax (b) 10 MoE, recyclables and breaks for businesses MEF organic materials adopting modern is in place equipment to process recyclables and/or organics Number of businesses 1.4.4 Industries adopting finance, are supported to feedstock quality or 10 businesses 2030 MISTI recover materials volume support as feedstock measures (a) Analysis report on EPR in four regional PA1.5 countries 1.5.1 Extended (a) Develop published Producer (a) Yes 2025 MoE, Extended (Yes/No) Responsibility (b) 10 (b) NCSD, Producer (b) Number of EPR (EPR) enabling measures 2030 MISTI, Responsibil measures regulations are in (c) Yes (c) MoC ity (EPR) identified for place 2035 schemes feasibility (c) EPR regulations enacted (Yes/No) 42 National Circular Economy Strategy and Action Plan (2021) (a) Number of manufacturers identified and agreeing to 1.5.2 participate in (a) 5 (a) Manufacturer take-back manufactur 2030 take-back MISTI initiatives ers (b) initiatives are (b) Number of (b) 3 schemes 2035 operational manufacturer take-back schemes fully functioning (a) Production standards developed for PET bottles and 1.5.3 Plastic (a) plastic bags production (a) Yes 2024 MoE, (Yes/No) standards are in (b) Yes (b) MISTI (b) Production place 2030 standards enacted for PET bottles and plastic bags (Yes/No) (a) Report on requirements for MoE 1.6.1 Appropriate eco-industrial MEF, infrastructure and parks completed (a) Yes MoI, services for Eco (Yes/No) 2030 (b) Yes MoPWT, Industrial parks (b) Financial plan for MLMUP PA 1.6 are identified eco-industrial C Develop parks completed eco- (Yes/No) industrial (a) Number of parks implementation plans for Eco CDC, 1.6.2 Eco- (a) Industrial Parks MISTI, industrial parks (a) 1 2030 completed MoE are (b) 1 (b) (b) Number of Eco MLMUP operationalized 2035 Industrial Parks C, CDC operationalized and in use 43 SO2: Promote Sustainable Consumption and Effective Reuse and Repair Timeline (2021 – 2035) Budget Priority Target 2026 Lead Output Output Indicator Target 2031- DP/Private Area Year 2021 2022 2023 2024 2025 - Agencies Gov’t Other Total 2035 Sector 2030 MoE, Percentage decrease MISTI, 2.1.1 Single-use in single-use plastic MoT, PA2.1 plastic use is use in target sectors MEF, MoI, Reduce 50% 2023 reduced in target compared to 2021 MIF, consumption business sectors baseline MoH, of single-use MoC, plastic NCDDS (SUP) and MoE, other single- Percentage decrease NCSD, use 2.1.2 Single-use in surveyed sample of MoEYS, materials plastic use is consumers using 50% 2023 NCDDS, reduced among single-use plastics MoI, MoT, end consumers compared to 2021 MoH, baseline sample MoC Communication MISTI, 2.2.1 Benefits of strategy on repair is MoE, repair are integrated into CE Yes 2028 MoEYS, promoted to communication SNAs, consumers material (PA 5.1) MoLVT (Yes/No) PA2.2 (a) Number of MISTI, Promote regulations on repair 2.2.2 A network (a) 1 (a) MEF, reuse and and reuse enacted of reuse and regulation 2030 MoE repair (b) Number of repair repair businesses (b) 50 (b) MoLVT, business and reuse businesses is created businesses 2030 MoC models registered as part of a (TBC) national network MISTI, 2.2.3 Product Number of product CCC, sharing and sharing and renting MEF, product renting 2 models 2035 models MoC, business models operationalized MoLVT, are supported MoI 44 National Circular Economy Strategy and Action Plan (2021) SO3: Enhance Waste Collection and Recycling Timeline (2021 – 2035) Lead Budget Priority Target Output Output Indicator Target 2026- 2031- Agencie DP/ Private Area Year 2021 2022 2023 2024 2025 s Gov’t Other Total 2030 2035 Sector 3.1.1 A model municipal Number of MoE, waste subnational NCSD, collection municipalities using a 3 municipalities 2030 MoI, contract to model contract with SNAs, expand SWM companies MEF coverage is introduced 3.1.2 A model Number of SEZs MoE, SEZ waste using model MEF, collection contract’s weight- MISTI, contract with 3 SEZs 2025 based fees with MoI, weight-based industrial waste SNAs, PA3.1 fees is collection companies CDC Strengthen introduced fee collection (a) Number of and effective subnational waste municipalities 3.1.3 An collection adopting new fee effective waste (a) MEF or collection system (a) 3 service user fee 2024 MME, (b) Percentage of fee municipalities collection (b) MoE, collection rates in (b) 100% system is 2024 SNAs subnational established municipalities with new fee collection system 3.1.3 An Percentage of waste effective waste collection coverage 100% 2025 collection is in subnational established municipalities 45 (a) Number of municipal waste pilots (a) 2 pilots (1 operationalized plastic 3.2.1 Pilots are MoE, (b) Number of recycling implemented (a) NCSD, industrial waste pilot in for segregated 2022 MoI, pilots Battambang waste (b) NCDDS operationalized and 1 waste collection for 2025 , SNAs, (c) Number of pilots collection industrial and (c) MISTI, for recycling of pilot in Kep) municipal 2025 MoPW e-waste (b) 1 pilot waste T (d) Number of (c) 1 pilot additional (d) 2 pilots subnational pilots operationalized (a) Strategy developed to MoE, engage informal NCSD, PA3.2 3.2.2 Strategy waste pickers (a) MoLVT Improve to engage (Yes/No) (a) Yes 2023 , waste informal waste (b) Percentage of (b) 75% (b) MoWA, segregation pickers is informal waste 2023 SNAs, and recycling implemented pickers supported MoH, by engagement MoSVY strategy 3.2.3 Economic MEF, incentives for Number of recycling MISTI, composting and reprocessing CDC, 10 businesses 2025 recycling and businesses utilizing MoE, reprocessing financial incentives MoI, are SNAs implemented Emissions standards 3.2.4 Emission are in place and standards and enforced for: plastic MoE, guidance for recycling, aluminum MISTI, recycling and Yes 2025 recycling, NCSD reprocessing construction waste standards are reprocessing developed (Yes/No) 46 National Circular Economy Strategy and Action Plan (2021) (a) Number of MEF, recycling MoE initiatives that 3.2.5 (financi receive financial Recycling al body) support (a) initiatives and MISTI (b) Number of sub (a) 5 initiatives 2030 facility and decrees (b) 1 subdecree (b) capacity MoE approved on 2035 improvements (technic deposit return are supported al) schemes for MoLV plastic, metal T and glass (a) Analysis report completed on the Cambodian 3.3.1 Market compost market MoE, potential and (Yes/No) (a) MoI, quality and (b) Quality and (a) Yes 2025 MoC, safety safety standards (b) Yes (b) SNAs, PA3.3 standards developed for 2030 MISTI, Improve analyses are organic waste MAFF organic completed treatment waste outputs management (Yes/No) 3.3.2 Pilot MAFF (national initiatives for 2 (1 Anaerobic biodigester Anaerobic programme Number of pilot Digestion pilot 2030 Digestion (AD) ), MoE, initiatives completed and 1 commercial and NCDDS composting pilot) composting are , SNAs implemented and MoI (a) Number of guidance documents disseminated on PA3.4 the roles and Provide 3.4.1 Roles and responsibilities of effective MoE, responsibilities national and sub (a) business (a) 1 circular MoI, of national and national 2022 support for (b) 200 (50% NCDDS subnational governments (b) waste and female) , SNAs, governments (b) Number of civil 2024 resource MoC are clarified servants trained sector on roles and responsibilities under circular (gender disaggregated) 47 1 data collection team established 3.4.2 Data on MoE, Number of data and 1 circular on different types MEF, supporting data collection of waste are 2030 CDC, institutions and requirements by collected and NCDDS standards in place SNAs disseminated , MoI disseminated (a) Number of documents disseminated to 3.4.3 A support the Business Environmental Registration Assessment MoE, Guidance process for (a) NCSD document for (a) 1 circular plastic recycling 2023 MoC, government (b) 1 guidance and organic waste (b) MISTI, related document recycling 2030 CDC, information for (b) Number of NCDDS the waste and business resource sector registration is developed support documents published 3.4.4 A Number of CDC, business and businesses and MoC, investor match investors that are 20 business and 2030 MISTI, making registered in a 10 investors NCSD, platform is matchmaking MoE created platform 48 National Circular Economy Strategy and Action Plan (2021) SO4: Ensure Effective Management of Residual Waste Timeline (2021 – 2035) Budget Priority Target Lead DP/ Output Output Indicator Target 2026 2031 Area Year Agencies Privat 2021 2022 2023 2024 2025 - - Gov’t Other Total e 2030 2035 Sector (a) Number of guidance documents for MoE, 4.1.1 model landfills MEF, Infrastructure developed (a) 1 report MoI, for controlled (b) Number of landfill (a) 2022 (b) 1 pilot in NCDDS, or sanitary pilots (b) 2025 Kep SNAs, landfills at the operationalized at (c) 2030 (c) 5 landfills NCSD, subnational the provincial level MPWT, level increased (c) Number of new MoT landfills at PA4.1 subnational level Improve operationalized landfill (a) Financial analysis disposal report published and MoE, 4.1.2 Landfill with optimum gate operations MEF, weight-based fee (Yes/No) (a) Yes (a) 2025 MoI, gate fee is set (b) Percentage of state- (b) 80% (b) 2030 NCDDS, to optimal owned landfills SNAs level enforcing the MPWT optimum level gate fee MoE, 4.1.3 Residual Percentage of state- MEF, waste disposal owned landfills that MoI, legislation is 100% 2030 follow updated residual NCDDS, updated and waste legislation NCSD, enforced MPWT 2 (1 study on PA4.2 4.2.1 MEF, financial Support Feasibility MME, Number of studies profitability and 1 Waste to assessments on 2023 CDC, completed on WtE study on Energy for WtE MoE, environmental residual conducted MISTI impacts) 49 waste 3 ((a) 1 pilot for treatment biodigesters for agricultural residuals, (b) 1 4.2.2 Pilot MAFF, Number of WtE pilots pilot for large- (a) 2023 initiatives on MME, operationalized and scale garment and (b) 2024 WtE are MISTI, evaluated cement industries (c) 2030 completed MoE and RDF, (c) 1 pilot for large- scale municipal waste) MoE, Number of NCSD, 4.2.3 Emission 2 ((a) 1 small- environmental and MoH, standards for scale and (a) 1 (a) 2023 public health standards MME, WtE are in large-scale (b) 2028 for WtE incinerators MoI, place intervention) enforced EDC, SNAs 4.2.4 Economic Number of WtE MEF, incentives for initiatives that received 2 2030 CDC, WtE are in economic incentives MoE place 4.2.5 Enabling Number of enabling MoE, legislation for legislations on WtE 1 subdecree 2028 CDC, WtE is in place approved MEF 50 National Circular Economy Strategy and Action Plan (2021) SO5: Enhance Crosscutting Stakeholder Engagement, Awareness and Capacity Building Timeline (2021 – 2035) Budget Target 2031 Lead DP/ Priority Area Output Output Indicator Target 2026- Year 2021 2022 2023 2024 2025 - Agencies Gov’t Private Other Total 2030 2035 Sector 5.1.1 Platform MoE, for industry Number of industry NCSD, stakeholders to stakeholders 30 2022 CDC, promote registered on the MISTI, knowledge is in CE platform MoLVT place Number of people MoE, reached by CE 5.1.2 NCSD communications, Communication MoEYS, including social 1 million materials MIF, PA5. 1 media posts and (including 50% 2025 relevant to CE MoPTC, Improve CE visitors to women) themes reach SNAs, awareness and government website public MoI, environmental (gender MoPTC education disaggregated) (a) National curriculum updated for environmental education after 5.1.3 review (Yes/No) MOEYS, Environmental (a) Yes (a) 2024 (b) Number of MOE, education is (b) 2 (b) 2024 supplemental NCSD improved environmental education books approved for national curriculum Number of national and subnational PA5.2 5.2.1 Capacity government Enhance of national and employees trained MoE, capacity & subnational on management of MoLVT, skills and governments waste operations 100 (50% NCDDS, employment for the 2023 and showing female) MME, opportunities management of improved capacity MoEYS, of all waste based on a MIF stakeholders operations is scorecard increased assessment (gender disaggregated) 51 5.2.2 Capacity Number of private and skills of sector workers private sector trained on modern waste and operations for MoE, recycling recycling and 500 (50% MoLVT, 2025 facility showing improved female) NCDDS operators are capacity based on a SNAs increased for scorecard modern assessment (gender operations disaggregated) Number of MoEYS, 5.2.3 Higher Cambodian MoE, education universities NCSD, services are in integrating circular 2 2035 MISTI, place and economy skills RUPP, trainings are training into RUA, provided curriculum ITC Number of informal waste sector 5.2.4 Increased workers and SME capacity for MoLVT, workers trained on informal waste MoE, circular economy sector and 500 (50% NCDDS engagement and 2025 SMEs to female) SNAs, showing improved participate in a MoI, capacity based on a Circular MoT scorecard Economy assessment (gender disaggregated) (a) Private sector engagement MoE, strategy is approved 5.3.1 Circular NCSD (Yes/No) Economy CDC, (b) Financial PA5.3 private sector (a) Yes (a) 2023 MEF, incentives approved Promote engagement (b) Yes (b) 2025 MISTI, for motivating Private Sector strategy is in MoT, circular economy Engagement place MoI, initiatives by for CE SNAs private sector innovation (Yes/No) and scaling up 3 (1 pilot for MoE, (a) Number of 5.3.2 Pilots for plastic NCSD private sector private sector recycling, 1 MEF, partnerships with 2035 innovation pilot for single- MISTI, CE pilots implemented use plastic MoT, operationalized and alternatives, 1 SNAs, 52 National Circular Economy Strategy and Action Plan (2021) evaluated for pilot for energy CDC, upscaling efficiency) MoC 53