[{"bbox": [96, 153, 1134, 207], "category": "Text", "text": "a conducive business ecosystem by providing access to key business support services, particularly financing to accelerate investments. Policy dialogue, and technical assistance are envisaged."}, {"bbox": [96, 231, 1134, 366], "category": "Text", "text": "The expected impact of this action is: improved competitiveness, environmental sustainability and working conditions in the GFT sector. The Specific Objective (Outcome) of this action is: adoption of sustainable energy practices in the GFT sector. This action contributes to TEI2 on Green Energy and Industrial Value Chains, and the regional TEI (EU-ASEAN Green Initiative), particularly on “clean, affordable, reliable, sustainable and modern energy” component."}, {"bbox": [96, 392, 396, 418], "category": "Text", "text": "The action consists of 3 outputs:"}, {"bbox": [96, 418, 1056, 471], "category": "Text", "text": "1. System strengthening: Strengthened regulatory framework for sustainable energy practices in the GFT industry, effectively integrating gender mainstreaming"}, {"bbox": [96, 471, 1134, 524], "category": "Text", "text": "2. Energy audits and their implementation: Improved industry awareness and capacity to adopt sustainable energy through audits and training, including safer and gender sensitive working environment practices"}, {"bbox": [96, 524, 1134, 578], "category": "Text", "text": "3. Access to financial support services: Improved technical and financial expertise of associations to facilitate adoption by the industry of sustainable energy practices"}, {"bbox": [96, 603, 1134, 710], "category": "Text", "text": "The action is aligned with the principle of the EU-Cambodia Multiannual Indicative Programme (2021-2027) to 'build back better', referring to the need for a green recovery and alignment with international norms and standards, while supporting Cambodian government's wider vision. It contributes to the global energy transition in line with the Global Gateway¹, the EU external energy strategy², the European Green Deal ³ and the Paris Agreement."}, {"bbox": [96, 736, 1134, 896], "category": "Text", "text": "The action mainly supports implementation of SDG 7 and 13 through energy efficiency improvement and adoption of renewable energy, and contributes to SDG 8 and SDG 5 with measures to improve factory floor working environment such as heat stress mitigation, improved ventilation and lighting for workers, with an understanding that the vast majority of workers are women, whose vulnerability to poor working conditions could exacerbate gender-based violence and harassment due to falling levels of productivity. Energy efficiency upgrades and adoption of renewable energy also contribute to the achievement of SDG 9 and SDG 12."}, {"bbox": [85, 937, 323, 969], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 1002, 234, 1029], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 1060, 1134, 1248], "category": "Text", "text": "Cambodia's Garment, Footwear and Travel Goods (GFT) sector continues to play a leading role in the economy, accounting on average for more than 70% of total export value over the past decade (2012-2021); it represents the biggest source of formal employment in the country, employing approximately 800,000 workers, 82% of whom are women. The sector's successful export growth has relied mainly on producing highly price-sensitive, low value-added garments. 70% of Cambodian 600 export factories work primarily on the assembly stage, also known as 'cut, make, trim/pack' (CMT/CMP) production model with low profit margin and high vulnerability to external changes, and only 30% receive orders in the form of full-package supply or Free on Board (FOB)⁴."}, {"bbox": [96, 1273, 1134, 1459], "category": "Text", "text": "By the end of 2021, female workers accounted for 82% of the total GFT workforce in Cambodia⁵. The GFT industry has provided many employment opportunities to Cambodia's young population, in particular from the rural areas. There is a strong industry preference for employing young women as sewing machine operators, who form the bulk of the assembly line workers. These workers are typically young migrants from poorer provinces. Young women's decision to migrate is usually a matter of economic necessity rather than individual choice: poverty and lack of wage employment act as a push factor from the villages. Almost two-thirds have completed primary education, but very few has progressed beyond. They have been socialised to accept the subordinate status"}, {"bbox": [85, 1535, 1042, 1560], "category": "Footnote", "text": "¹ https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/stronger-europe-world/global-gateway_en"}, {"bbox": [85, 1560, 885, 1584], "category": "Footnote", "text": "² https://energy.ec.europa.eu/topics/energy-strategy/strategy-eu-external-energy-engagement_en"}, {"bbox": [85, 1584, 893, 1608], "category": "Footnote", "text": "³ https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal_en"}, {"bbox": [85, 1608, 693, 1628], "category": "Footnote", "text": "⁴ Cambodia Garment Footwear and Travel Goods Sector Development Strategy 2022-2027"}, {"bbox": [85, 1627, 743, 1646], "category": "Footnote", "text": "⁵ Eurocham (2012) *Cambodia Garment, Footwear and Travel Goods Sector Brief, November 2022*"}, {"bbox": [1038, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 4 of 29"}]