Draft_of_SPP_Roadmap_and_Action_Revised_002_English_Version_002.pdf

KEY MESSAGE The Sustainable Public Procurement Roadmap and Action Plan 2024-2035 has been developed as a policy document to support Royal Degree of Public Procurement, Code of Environment and Natural Resource, National Strategic Plan on Green Growth (2013-2030) and Pentagonal Strategy (Phase I), this new phase focuses on Growth, Employment, Equity, Efficiency and Sustainability, aimed at protecting, preserving and accumulating national achievements, promoting national prestige, enhancing economic growth, and building the foundation towards realizing the Cambodia Vision 2050. This Roadmap and Action Plan identifies the vision, mission, goal, strategic objectives and specific actions needed over the short, medium and long term to strengthen Cambodia's sustainable procurement framework and accelerate the transition towards more environmentally and socially responsible public spending. If implemented effectively, it will help the government meet its commitments to green growth and sustainable consumption and production as outlined in national policies and plans such as the National Strategic Development Plan, Rectangular Strategy, and SCP Roadmap (aligned with SDG12). I hope that the Roadmap of SPP will become a valuable policy document for General Directorate of Public Procurement of Ministry of Economic and Finance to continue pursuing sustainable public procurement. In this regard, I encourage the General Directorate of Public Procurement to check possibilities to coordinate or elaborate with lined Ministries, especially the Ministry of Environment for this roadmap improvement. I would like to thank the Ministry of Environment, National Council for Sustainable Development and Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH for leading the development of this Roadmap and Action Plan. I also appreciate the valuable contributions from representatives from national and sub-national institutions, as well as civil society and development partners through their participation in stakeholder consultations and working groups. Their expertise and perspectives have ensured this document reflects Cambodia’s current needs and priorities for sustainable public procurement. I hope all stakeholders will continue supporting its implementation and monitoring going forward. Phnom Penh:…………………………….. Deputy Prime Minister, Minister of Ministry of Economic and Finance FOREWORD Cambodia relies heavily on its primary economic sectors, such as agriculture, tourism, construction, and manufacturing, all of which depend on the environment and natural resources. Recognizing the vulnerability to global environmental crises, including climate change, Cambodia is determined to protect its environment for the well-being of its people and to contribute to global efforts in addressing these challenges. 2 The current socio-economic changes and value change on natural resources are pushing Cambodia's ecological systems to their limits. Agricultural expansion and increased agricultural production have led to land degradation, resulting in reduced ecosystem services. The estimated cost of this land degradation amounts to approximately 8% of Cambodia's GDP, a significant economic impact. To sustain economic growth and reduce poverty, it is crucial to balance resource consumption with environmental preservation. Fortunately, Cambodia has realized the potential for a shift towards sustainable public procurement practices. By embracing technology improvements and resource efficiency, Cambodia can achieve economic growth and poverty reduction without compromising the environment. Cleaner technologies and sustainable production processes present an opportunity to develop products and services that reduce costs, create new jobs, open new markets, and provide competitive advantages. Moreover, as global supply chains increasingly prioritize sustainability, Cambodian suppliers can position themselves for success by focusing on environmental, social, and corporate governance. To guide Cambodia's journey towards sustainable public procurement, the Sustainable Public Procurement and Action Plan (SPP) has been developed for the period 2024-2035. This visionary plan outlines a comprehensive roadmap that includes practical strategies and actions to promote sustainability across the entire public procurement system. By considering key sectors, such as industrial development, building construction, tourism and services, energy consumption, water management, waste management, agriculture, fisheries, forestry, transport, mining, and education, the SPP Plan addresses the diverse aspects of sustainable procurement. The SPP Plan is a powerful tool that will not only promote the efforts of the Royal Government of Cambodia but also mobilize new partnerships and financial resources. It provides a framework to track progress, raise awareness, and ensure accountability in achieving the specific strategies and actions identified. The successful implementation of the SPP Plan requires collaboration among the government, private sector, and development partners. Phnom Penh:…………………………….. Minister of Ministry of Environment 3 Contents ACRONYMS AND ABBREVIATIONS................................................................................................ 5 EXECUTIVE SUMMARY................................................................................................................. 6 1. INTRODUCTION................................................................................................................... 8 1.1 BACKGROUND................................................................................................................................ 8 1.2 DEFINITIONS OF SUSTAINABLE PUBLIC PROCUREMENT (SPP)................................................................. 9 1.3 OVERVIEW OF SPP IN THE WORLD, REGIONAL AND NEIGHBORING COUNTRIES........................................ 11 1.4 OVERVIEW OF SPP IN CAMBODIA................................................................................................... 12 2. STRATEGIC FRAMEWORK................................................................................................... 13 2.1 RATIONALE FOR DEVELOPING SPP................................................................................................... 13 2.2 VISIONS...................................................................................................................................... 13 2.3 MISSION..................................................................................................................................... 13 2.4 GOALS OF SPP............................................................................................................................. 14 2.5 GUIDING PRINCIPLES OF SPP.......................................................................................................... 14 3. STRATEGIC ANALYSIS......................................................................................................... 16 3.1 SCP ROADMAP AND ACTION PLAN (2022-2035).............................................................................. 16 3.2 POLICIES AND STRATEGIC AND ACTION PLANS IN CAMBODIA RELEVANT TO SPP...................................... 16 3.3 CHALLENGES FOR SPP................................................................................................................... 20 3.4 BENEFITS OF SPP FOR CAMBODIA................................................................................................... 22 4. STRATEGIC OBJECTIVES AND ACTIONS................................................................................ 23 5. INSTITUTIONAL ARRANGEMENTS....................................................................................... 27 6. BUDGET AND FINANCIAL MECHANISM............................................................................... 28 7. MONITORING, EVALUATION AND LEARNING...................................................................... 29 7.1 PROPOSED MONITORING AND EVALUATION FRAMEWORK.................................................................. 30 8. CONCLUSION..................................................................................................................... 40 APPENDIX 01: RELEVANT SUPPORTING LAWS, POLICIES, STRATEGIES AND ACTION PLANS........... 41 APPENDIX 02: SPP ACTIONS IN SCP ROADMAP AND ACTIONS 2022-2035.................................... 42 APPENDIX 03: DETAIL OF STRATEGIC PLAN AND ACTIONS 2023-2035.......................................... 43 APPENDIX 04: CAMBODIA SDG12–TARGET, INDICATORS AND RESPONSIBLE AGENCY.................. 53 List of Tables and Figures: Table 1: Cambodia SDG 12 Targets and Indicators....................................................................... 20 Figure 1: The Policy Hierarchy of Cambodia................................................................................ 18 Figure 2: Policy and program interventions of Cambodia’s Roadmap for SCP, adapted from UNEP, 2012.................................................................................................................................. 19 Figure 3: Relevant Ministries interested in Implementing SPP..................................................... 27 4 Acronyms and Abbreviations CCC Cambodia Chamber of Commerce C-SDG Cambodian Sustainable Development Goals GGGI Global Green Growth Institute GIZ Gesellschaft für Internationale Zusammenarbeit GPP Green Public Procurement GDP Gross Domestic Product GSSD General Secretariat for Sustainable Development ISC Institute of Standards of Cambodia MEF Ministry of Economy andFinance MISTI Ministry of Industry, Science, Technology, and Innovation MoC Ministry of Commerce MoE Ministry of Environment MoInfo Ministry of Information MoI Ministry of Interior MoP Ministry of Planning MME Ministry of Mines andEnergy MLMUPC Ministry of Land Management, Urban Planning and Construction NCSD National Council for Sustainable Development NGO Non-Government organization NSDP National Strategic Development Plan REDD Reducing Emissions from Deforestation and forest Degradation RGC Royal Government of Cambodia SCP Sustainable Consumption and Production SDGs Sustainable Development Goals SEZ Special Economic Zones SME Small to Medium Enterprise SPP Sustainable Public Procurement TWG Technical Working Group UNDP United Nations Development Programme UNEP United Nations Environment Programme GLOSSARY 5 1. Manufacturers are defined as the target groups of these reforms. They are required to change from producing ‘brown’ to producing “green” products. 2. Quality Infrastructure is defined as the necessary for third party verification of product criteria. Quality infrastructure usually requires accreditation and calibrated testing instrument for various product groups. 3. Line Ministries are defined as mandatory to develop the legislative documents, such as SPP policies. Often the Ministries of Environment are mandated to develop these policies and green product criteria, while other line Ministries may be mandated to develop other sustainability criteria, e.g. social ones. 4. GPP/SPP Technical Committees are defined as platforms uniting relevant actors to negotiate SPP product criteria, often based on market studies or other product information sources. In many cases, SPP Technical Committees are supported by a smaller ad-hoc core-group, including external product-specific experts to develop the actual criteria. 5. GPP/SPP are defined as a Certification or endorsement of products and services by Ministries or Central Procurement Agencies are practiced in SEA to provide security to procurers. These products are often listed in online data-bases, directories and/or are marked. 6. Central Procurement Agencies are generally defined as the procurer for the federal/ national government and responsible for purchasing across ministries and ministerial departments. One of the main tasks is to bundle purchases and process them centrally, which helps in saving funds of the federal budget. Central Procurement Agencies, in many cases, also standardize technical procurement requirement (e.g. standard technical specification, use of a type-I ecolabel as the means of proof of compliance etc.), which could be a useful strategy for enabling SPP. Centralizing and standardizing procurement procedures may also be helpful in establishing SPP monitoring systems. 7. GPP/SPP Steering Committees are defined as the platforms which are uniting relevant public actors to advance and shape SPP policies. The chairmanship of the lead Ministry is often essential to create consensus among conflicting interests within the government. 8. Capacity Development is defined as trainings, product catalogues or procurement circulars are often used in SEA to develop the trust and competencies of procurers to implement GPP/SPP. Executive Summary Cambodia’s peace and political stability have provided strong economic growth and poverty reduction for over two decades, contributing to the strong growth in the agriculture, construction, garment manufacturing, and tourism sectors. Before COVID-19, Cambodia maintained the annual average economic growth rate at about 7% from 2006 to 2019 and reduced the poverty rate from 52% in 2004 to 13.5% in 2014. However, economic growth indeed comes at the cost of environmental issues. The Royal Government of Cambodia (RGC) is strongly committed to protecting the country's environment and natural resources through strengthening environmental and natural resource management measures and national sustainability agenda to protect the quality of natural resources and minimize waste and pollution. 6 Cambodia’s Roadmap for Sustainable Consumption and Production (SCP) 2022-2035 was announced in 2022 to accelerate SCP implementation and attain environmental sustainability in Cambodia. The SCP Roadmap defines the action on Green Public Procurement; later, Cambodia decided to move to Sustainable Public Procurement (SPP) which has been identified as a strategy to support sustainable investment and sustainable consumption and production. Globally, governments spend approximately US$13 trillion in public contracts annually, representing about 12 % of GDP. Government procurement is one key tool to spread the best practice to promote SPP. Procuring products, services, and works can create environmental impacts from its process, uses, and disposal. Critical environmental care in procurement or buying can minimize negative environmental consequences and risks associated with human health while promoting sustainability. The SPP Roadmap is designed into three action phases: Short-term, Medium-term, and Long-term actions. This SPP Roadmap is also built on a range of sustainability initiatives and policies already being implemented in Cambodia, such as Cambodia Vision 2050, the National Strategic Development Plan (2019-2023), the Cambodia Sustainable Development Goals Framework (CSDGs 2016-2030), the National Policy and Strategic Plan on Green Growth (2013-2030), the Natural Resources and Environmental Code (draft), the Circular Economy Strategy and Action Plan (2021-2025), SCP Roadmap and Actions (2022-2035), and the Circular Economy Strategy and Action Plan (2021-2025). There are five Strategic Objectives (SO) of the SPP Roadmap equipped with actions response to each strategic objective: SO1: Policy and Legal Instrument Development and institutional arrangement, SO2: Environmental Criteria Development, SO3: Capacity Building awareness raising, SO4: Monitoring, and evaluation, and SO5: Networking and Private Sector Engagement. These SOs have been consulted among more than 16 Ministries and institutions joining SCPTWG led by NCSD/MoE, however, five main ministries such as the Ministry of Economy and Finance, the Ministry of Environment, the Ministry of Commerce, the Ministry of Planning, and the Ministry of Industry, Science, Technology, and Innovation are being expressed the interests in the pilot studies on these SPP actions. Cambodia’s Sustainable Public Procurement and Action Plan (2023-2035) will become a new legal strategy to the extent of the partnership with line ministries, private sectors, and development partners, establish institutional arrangements, and discuss existing platforms to mobilize finance. This document will be promoted a sustainable procurement policy and legal framework, capacity development, and support economic, social, and environmental development. 7 1. Introduction 1.1 Background Peace and political stability have led Cambodia to experience strong economic growth and poverty reduction for over two decades, contributing to the strong growth in the agriculture, construction, garment manufacturing, and tourism sectors. Environment and natural resources, particularly agriculture, are still the essential factors contributing to economic development, even though the industrial sector has increased significantly and become the main contribution to the country's economy. Before COVID-19, Cambodia maintained the annual average economic growth rate at about 7% from 2006 to 2019, achieved a lower-middle income status in 20151, and reduced the poverty rate from 52% in 2004 to 13.5% in 20142. From early 2020 economic growth and development were challenged by the COVID-19 pandemic, especially in the sectors like tourism, manufacturing, construction, and other service industries. After successful COVID-19 vaccination to its population, Cambodia reopened its economy in all sectors in March 2022, and the government lifted the ban on international travel restrictions and wearing mask duty in public places (outdoor) as people are getting more resilient to the COVID-19 variants. At least 83% of the population have received two doses of COVID-19 vaccines, while the government has committed to providing several doses to citizens. The daily infection cases decreased to one digit in April 2022; subsequently, COVID-19 cases completely dropped to zero for about two months. The government aims to recover the economy from COVID-19, bounce back to the annual economic growth of about 4% in 2022 and maintain its vision of becoming an upper middle- income country by 2030 and a high-income country by 2050. Economic growth indeed comes at the cost of environmental issues. In this sense, the Royal Government of Cambodia (RGC) strongly commit to protect the country's environment and natural resources through strengthening environmental and natural resource management measures and national sustainable program to fortify the quality of natural resources and minimize waste and pollution. Regarding environmental challenges, Cambodia is still facing some environmental sustainability impact; concerning climate change, biodiversity loss and depletion of natural resources, especially in urban areas, such as solid waste management, untreated wastewater effluent, and air quality. The RGC indicates the promotion of resource efficiency and sustainability by implementing the principle of sustainable consumption and production in the National Strategic Development Plan (NSDP) (2019-2023). Furthermore, Cambodia’s commitments under the Cambodian Sustainable Development Goals (CSDGs) include the national goal of strengthening SCP in goal 12 of CSDG (Responsible Consumption and Production) and the Paris Agreement on Climate Change. Moreover, under Cambodia’s National Strategic Plan for Green Growth (2013-2030), the RGC seeks to integrate green growth practices and policies, including SCP, into its economic and social development agenda. To further strengthen the said commitments to sustainability, the RGC, through the Ministry of Environment (MoE) and the National Council for Sustainable Development (NCSD), launched a Circular Economy Strategy and Action Plan in 2021 in enhancing a transition from the linear to a circular economy approach. Right after this, Cambodia’s Roadmap for Sustainable Consumption and Production (SCP) 2022-2035 was developed in 2022 to accelerate SCP implementation and attain environmental sustainability in Cambodia. According to the said roadmap and action plan, sustainable public procurement (SPP) has been identified as a strategy to support sustainable investment and sustainable consumption and production.. 1 RGC. 2019. National Strategic Development Plan 2019-2023. 2 Ibid, 8 Procurement of products, services, and works can create environmental impacts from its manufacturing, uses, and disposal. Critical environmental concentration in procurement or purchase can minimize negative environmental consequences and risks associated with human health while promoting sustainability. Generally, the government is the one that makes the biggest purchase in the economy. Taking environmental measures or creating environmental criteria in public procurement can lead the government to achieve sustainability policy goals. The SPP has also been identified as the need to be developed by RGC through its NCSD/MoE based on the strategic framework of NCSD 2019- 2023, and importantly, Environment and Natural Resources Code outlines five articles to develop, execute, monitor, and report SPP implementation.3 Under the SCP roadmap, SPP has been recognized as a strategy to support sustainable investment in the short term (2022-2025) and medium term (2025-2028) to build a sustainable business in the country. Four main activities to support SPP are as following: 1) Setting up sustainable procurement standards, 2) Design environmental criteria and performance requirements for priority products and services, 3) Integrate sustainable procurement standards into the public procurement system under the Ministry of Economy and Finance (MEF), and 4) Provide technical guidance to ministries and institution in implementing the sustainable procurement standards and monitoring and reporting. The SPP, therefore, supports SDG 12.7.1 and is beneficial to Cambodia's environment and natural resources through its implementation. To enhance practices of SPP, MoE with technical support from the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), financially supported by The Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) through the project on SCP Outreach in Asia-The Next Five, have agreed to develop the National Roadmap and Action Plan for SPP. The overall objective of the Roadmap and Action Plan of SPP is to identify strategies, strategic objectives, and actions for SPP in Cambodia. Specifically, it will provide overviews of the national regulatory framework, institutional structure, governance mechanism and capacity needed for SPP implementation, priority actions based on the short, medium, and long terms, roles of stakeholders, and resource mobility for the implementation of SPP in Cambodia. 1.2 Definitions of Sustainable public procurement (SPP) SPP is a policy government used to promote sustainable development and protect the environment. The roadmap will explore some terms or definitions of procurement from the existing policies and regulatory documents in Cambodia’s context and international organizations. Based on the Law on Public Procurement of Cambodia 2012, the related terms or “procurement” and “public procurement” are shown below: - Procurement is “any purchase or acquisition of goods, works, services, or consulting services using the methods specified under this Law.”4 - Public procurement refers to “the procurement implemented by ministries, institutions, provinces, municipality, cities, districts, khans, communes, Sangkats, public enterprises, public enterprises with administrative characteristics, other financial autonomous entities, and public-private partnership.” From international organizations or most often quoted definitions of SPP, it is seen that different 3 The ENRM Code: Content 7 about the Sustainable Consumption and Prouction, and Article 91 and 92 9 organizations gave similar descriptions and agreed with the idea of using public purchases for green products and services to benefit the environment. However, some regions use different terms to determine the same action in purchasing of green products, services, and works, such as green public procurement (GPP) in South Korea and China. SPP is most commonly used in the European region. The environmentally friendly preferable purchasing is practiced in the United States of America. In the broad sense, SPP can sometimes be used changeably with GPP. However, the SPP is driving to achieve the appropriate balance between the three pillars of sustainable development, including economic, social and environmental, while the GPP is attaining reduced environmental impacts from its implementation5. SPP is also a tool used to stimulate the green market on both sides of the producer or service provider and consumer, leading to the SCP objectives and achieving SDG12.7.1. According to the National Strategic Plan on Green Growth 2013-2030, green procurement is described as: “The procedure and process of purchasing raw material and green products with quality, which ensures ecosystem safety through a rightful use with effectiveness, transparency, accountability, and opportunity, based on green growth principles.”6 According to the code on Environment and Natural Resources 2023, the SPP refers to the process of procurement that takes care of reduced environmental impact and human health while attaining the balance of the three pillars of sustainability, including economy, society, and environment. The following definitions are taken from different world and international organizations that explain GPP or SPP in their ways, but not relatively different meanings. “Sustainable procurement is a process whereby organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organization, but also to society and the economy, whilst minimizing damage to the environment.” Marrakech Task Force on Sustainable Public Procurement.7 Based on UNEP, SPP is a “process whereby public organizations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life-cycle basis in terms of generating benefits not only to the organization, but also to society and the economy, whilst significantly reducing negative impacts on the environment.”8 According to the European Commission, GPP is determined that “the approach by which Public Authorities integrate environmental criteria into all stages of their procurement process, thus encouraging the spread of environmental technologies and the development of environmentally sound products, by seeking and choosing outcomes and solutions that have the least possible impact on the environment throughout their whole life-cycle.”9 The World Bank defines GPP as “a process whereby public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life cycle when compared with goods, services and works with the same primary function that would otherwise be procured”10 5 Sustainable GPP - Environment - European Commission (europa.eu) 6 RGC, 2013. National Strategic Plan on Green Growth 2013-2030. 7 Definition adopted by the Marrakech Task Force on Sustainable Public Procurement; the international initiative launched in 2005. 8 Sustainable consumption and production policies | UNEP - UN Environment Programme 9 https://ec.europa.eu/environment/gpp/pdf/take_5.pdf 10 World Bank (2021), Green Public Procurement: An Overview of Green Reforms in Country Procurement Systems, Climate Governance Papers Series. Washington. 10 GPP requires the inclusion of green criteria into the procurement process. Procurers can identify the products and services that offer long-term benefits in terms of money saving and environmental gain compared to other similar product items. The environmental criteria should be considered in all stages of procurement, starting from supplier or product selection, contract award, and contract performance. There are varieties of products and services in the market for sustainable procurement include recycled paper, sustainably harvested wooden office furniture, food from organic production and catering services with organic food, electric, hybrid, or low-emission carbon vehicles, energy- efficient information technological equipment, buildings with low energy consumption, cleaning services using organic products, electricity from renewable energy sources. 1.3 Overview of SPP in the World, regional and neighboring countries Globally, governments spend approximately US$13 trillion in public contracts annually, representing approximately 12 % of GDP. SPP encourages governments to consider choosing products and services that cause minimal adverse environmental impacts. It considers the environment when searching for eco-friendly products and services at competitive prices while, more broadly, encouraging sustainable procurement to include human health and economic concerns. In many countries, the SPP has become a common policy to respond to environmental degradation and overuse of natural resources.11 The 2017 Global Review conducted by UNEP on the progress of SPP/GPP across public and private organizations in 62 countries showed that 41 countries have SPP/GPP commitments and provisions in either sustainable or green procurement policies or other organization policies such as general procurement regulations or environmental policies. SPP/GPP practices are becoming more widespread internationally, with interesting examples to share and leverage. The level of enforcement of SPP/GPP policies varied in countries. Most national governments in the study of UNEP include SPP/GPP provisions in overarching or thematic policies and strategies. In contrast, a smaller proportion includes them in procurement regulations or policies dedicated explicitly to the promotion of SPP/GPP. A common feature across governments is that the ministries or agencies involved in designing SPP/GPP policies are predominantly associated with environmental, economic, and financial affairs. The implementation at a broad scale is often the initiative of an individual department or agency within the government. This leads to disintegrating implementation efforts and results.12 The 2030 Agenda for Sustainable Development, adopted in 2015 by 193 Member States, has 17 Sustainable Development Goals (SDGs) and 169 targets at its core. The SDGs build on the Millennium Development Goals and balance the three dimensions of sustainable development: economic, social, and environmental. SDG 12, “ensure sustainable consumption and production patterns,” with its targets and indicators for decoupling economic growth from natural resource use in 2030, is a goal that enables the achievement of many others. Its inclusion in the SDGs recognizes the cross-cutting role of SCP for sustainable development, as SCP considers environmental, social, and economic aspects throughout the whole life cycle of products, works, and services. Some international organizations have accepted SPP as the standard practice in their organizations. For instance, in the World Trade Organization (WTO), the government procurement agreement provides for SPP in Article X.6, under which “a Party, including its procuring entities, may … prepare, adopt or apply technical specifications to promote the conservation of natural resources or protect the 11 http://www.ippa.org/IPPC4/Proceedings/07GreenProcurement/Paper7-6.pdf 12 Ibid. 11 environment.”13 The 2016 procurement framework of the World Bank admits the value-for-money in the integrity and delivering sustainable development. The International Standard Organization (ISO) established a Guidance on Sustainable Procurement (ISO 20400) for the public and private institutions to follow and practice the standards. SPP has been on the global agenda, SDGs. In goal 12 of SDGs, Responsible Consumption and Production indicates the “promoting public procurement practices that are sustainable in accordance with national policies and priorities” as target 1.7. According to the EU Switch Asia 2021, the SPP receives a common agreement among the public authorities as a strategic measure to provide benefits to the environment, economy, and society by shifting to sustainable development.14 There is a growing agreement among public authorities that implement SPP or GPP that it can be used as a strategic instrument to deliver environmental, economic, and social benefits, with a shift from focusing exclusively on the environmental dimension to achieving a balance of all three fundamental pillars of sustainable development. 1.4 Overview of SPP in Cambodia SPP is recognized as part of SDG 12. The Agenda 2030 has put sustainability at the center of the development agenda. Member states have pledged to “ensure sustainable consumption and production patterns” (SDG 12) and “promote public procurement practices that are sustainable in accordance with national policies and priorities” (SDG target 12.7.1). However, Cambodia has selected two out of the global SDG 12 targets (SDG target 12.4 and SDG target 12.5), corresponding to a total of four indicators. The indicators are mostly related to pollution, waste management, and recycling without any particular target or indicator addressing sustainable consumption. Based on the Law on Public Procurement of Cambodia 202315, which was promulgated on May 16th 2023, mention on the Identify measures, methods, procedures, and management structures and implementation of all public procurement in order to ensure for procured purchasing, construction, maintaining, service and leasing of consultants which are transparent, accountable, fair, competitive, justiciable, efficient, sustainable, quality, economic and timeliness, as well as enhancing a unified public procurement system in the Kingdom of Cambodia (Article.1) On the other hand, this law as in the article Law on Public Procurement, has included one article regarding the establishment of Sustainable Public Procurement in Cambodia. Article 56 of the Law stated that “The Implementation of Public Procurement shall be in accordance with the context of sustainable procurement. Sustainable Public Procurement shall require the technical specifications, conditions, and criteria by prioritizing the environmental protection and socio-economic impact management. Conditions, Rules, and Procedures for implementing Sustainable Public Procurement shall be determined by Sub-Decree.” Recently, the RGC has just amended the Public Procurement law which in article 56 has included the Green Public Procurement (GPP). Nevertheless, the environmental criteria or environmental preference in the law or guidance for public procurement has not been identified and mainstreamed. This allows every government entity at national and sub-national levels to set their procurement plans based on the existing laws and guidance. 13 World Bank (2021), Green Public Procurement: An Overview of Green Reforms in Country Procurement Systems, Climate Governance Papers Series. Washington. 14 http://www.switch-asia.eu/site/assets/files/2950/spp_info_note_final-1.pdf 15 Law on the Public Procurement (2023) 12 2. Strategic Framework Under Cambodia’s Roadmap for SCP 2022-2035, four SPP activities are identified (Appendix 02: SPP Actions in SCP Roadmap and Actions 2022-2035); three of them are determined to implement in the short-term period from 2022-2025, and another is in the medium term from 2026-2028. A strategic framework for intervention by SPP in this document is basically built on the existing efforts. Further, it extends its scope through the lens of focus on current situation analysis and conceptions, determining its own vision and mission, reframing objectives and goals, examining strategies and strategic objectives, listing priority actions and indicators, designing institutional arrangements, and identifying capacity building needs. Building on this, long-term action should be required to ensure the sustainable implementation of SPP in Cambodia. Therefore, the Strategic Analysis section will propose the long-term priority action of SPP. 2.1 Rationale for developing SPP There are some rationales for developing SPP in Cambodia. The first step is to build on the RGC’s commitments to environmental protection and resource efficiency in its key policies and strategies, the SPP can contribute to the policy goals and provide incentives for green investment and bidders to include environmental criteria in public procurement requirements. There is an increasing recognition from many governments globally that SPP is an important tool for economic development according to the World Bank 201716. In Cambodia, SPP is a new concept to the government staff and institutions as well as the economic development as a whole. It is suggested that the government’s current practices lack of environmental criteria or consideration while policy and strategic documents outline environmental concerns and remedies for improved quality of the environment, continuing economic development, and sustainable growth of the economy. The Cambodia can significantly contribute to local, regional, and international sustainability goals through their purchasing power to choose goods, services, and works with a reduced environmental impact. SPP can be an essential driver for innovation, providing the industries with real incentives for developing green products and services. Thus, the SPP can stimulate the green market and subsequently promote SCP in the country, particularly in private and civil society sectors. SPP can provide cost savings for the government entities if considering the life cycle cost of the product, not just for the price at purchase. For example, using energy-efficient products in the office can help significantly reduce electricity bills. 2.2 Visions The vision of the SPP Roadmap and Action Plans anticipates that: By 2035, the Royal Government of Cambodia will fully implement the green purchases of goods, services and works to promote resource efficiency and sustainable development. 2.3 Mission The mission of SPP is to provide guidance for public procuring entities to drive sustainable consumption and stimulate the sustainable consumption and production in Cambodia. 16 https://openknowledge.worldbank.org/bitstream/handle/10986/36508/Green-Public-Procurement-An- Overview-of-Green-Reforms-in-Country-Procurement-Systems.pdf?sequence=1&isAllowed=y 13 2.4 Goals of SPP In supporting the vision and mission above, the SPP sets the following goals: 1. Designing and implementing policies, programs and plans, including incentives and regulations, which effectively and efficiently enable government entities to become more sustainable in their purchasing and consumption of products, services, and works. 2. Building capacity and raising awareness among stakeholders in participation of green consumerism choices of goods and services in their daily purchases at all societal levels as well as amongst the diverse ranges of government entities and communities within the population, especially the younger generation. 3. Strengthening research and development in green lifestyle and consumption, product life cycle consideration and assessment, green business models for making informed choices for consumers, and community consumption behaviors to enhance environmentally friendly products across the economy. 4. Promoting sustainability in purchasing goods and services, thereby protecting the environment and social well-being while increasing business competitiveness and promoting innovation. 5. Promoting the government’s ongoing green initiative through a procurement model with environmental criteria under the government procurement process to enhance sustainability in energy, water, and material efficiency, waste reduction, and pollution and emission prevention. 6. Promoting the government’s leadership in protecting and conserving environmental and natural resources, therefore, it can influence the private sectors and communities to follow. 7. Support the government in accelerating the implementation of CSDGs and other global agendas, including climate change, biodiversity, pollution reduction, and waste minimization. 2.5 Guiding Principles of SPP In supporting the implementation of SPP, the following guiding principles are used: 1. Multi-sector and multi-stakeholder approach: cross-sector coordination and collaboration between stakeholders across the public and private sectors and civil society will drive SPP practices in Cambodia and deliver benefits and opportunities across stakeholder groups. 2. Adherence and alignment to national strategy, plan, and priorities: Support the government in implementing national priorities set under Rectangular Strategy, National Strategic Development Plan, Climate Change, Green Growth, and Cambodia’s vision for the upper middle-income country by 2030 and high-income country by 2050. 3. Environmental protection and sustainability: Ensuring environmental sustainability, well- being, and quality of life for people by reducing environmental challenges associated with air, land, and water pollution. 4. Gender equality in environmental protection and natural resources management: Gender 14 equity and the participation of women in all aspects of decision-making concerning the environment and natural resources shall be promoted and encouraged. 5. Public participation and interest: Decisions being made through a transparent, inclusive, and accountable process to serve the public interest in terms of environmental and natural resource benefits. 6. Sustainability or Inter-generational equity: equitably meet the developmental, social, and environmental needs of both present and future generations. 15 3. Strategic Analysis 3.1 SCP Roadmap and action plan (2022-2035) SPP Section action plan detailed in the SCP Roadmap and Action Plan 2022-2035 is categorized into two periods: Short-term (2024- 2026) and Medium-term (2026 - 2030). However, it should be realized that SPP needs long-term action to meet the vision in each period; the planned activities are: a) Short term 2024-2027: Develop sustainable (green) procurement standards or guidelines under the coordination of the MoE and MEF Design environmental criteria and performance requirements for priority products and services to be procured by the government, in alignment with action 2.1. environmental labeling and product certification, and Integrate sustainable and/or green procurement standards into the public procurement system under the MEF (including the amendment of public procurement law). b) Medium Term 2027-2031: Provide technical guidance to Ministries and agencies in implementing sustainable and/or green procurement standards. c) Long Term 2031-2035: Develop an electronic or online SPP system to facilitate data collection and reporting of SPP from public entities Determine the tracking progress against the institutional level of SPP governance, green products, environmental benefits from SPP, and market development of environmentally sustainable solutions 3.2 Policies and Strategic and Action Plans in Cambodia relevant to SPP The current policies, regulations, national development plans, strategies, priorities, and SDGs are listed in appendix 01 and Figure 1. Cambodia's vision 2050 is expecting to become an upper-middle- income country by 2030 and a high-income country by 2050. Alongside the UN SDGs 2030, Cambodia has announced the CSDGs (2016-2030). The RGC launch for the Pentagonal Strategy Phase I for Growth, Employment, Equity, and Efficiency and Sustainability (Building the foundation Towards Realizing the Cambodia Vision 2050. Moreover in the Pentagon 4 states for the Resilient, Sustainable and Inclusive Development and also targets five important activities such as; a) Optimization of Demographic dividends equality, b) Sustainable management of natural resources, cultural heritages and tourism, c) Promotion of agriculture and rural development, d) Strengthening of urban management and modernization and e) Ensuring environmental sustainability and readiness for responding to climate change as well as promotion of green economy Code on Environment and Natural Resource (2023) as at Chapter 3 and Part 1៖ Sustainable Public Procurement which states in the Article 91. Ministries and institutions in responsibility on the economy and finance should collaborate with the ministries and institutions in responsibility on the 16 environment and natural resources and relevant ministries, institutions and sub-national administrations, shall develop measurement and legislation for sustainable public procurement. Law on the Public Procurement (2023) states in the Article 56. The Implementation of Public Procurement shall be in accordance with the context of sustainable procurement. Sustainable Public Procurement shall require the technical specifications, conditions, and criteria by prioritizing the environmental protection and socio-economic impact management. Conditions, Rules, and Procedures for implementing Sustainable Public Procurement shall be determined by Sub-Decree.” Circular Strategy on Environment(2023 -2028) states three main pillars as following  CLEAN, which has three angles: controlling pollution, modernizing pollution measurement system, and improving environmental impact assessment.  GREEN has three angles: intensifying tree planting movement, ensuring sustainable management of protected areas, and enhancing local communities’ livelihood.  SUSTAINABLE has another three angles: applying compliance, expanding cooperation and strengthening coordination. Cambodia’s National Strategic Development Plan or NSDP 2019-2023 is emphasized economic development as an essential element contributing to environmental sustainability. The priority strategy of NSDP on environmental sustainability is to work responding to climate change and to implement SCP through the action: “Promoting resource efficiency and sustainability by implementing the principle of sustainable consumption and production.” The relevant documents, policies, regulations, and measures are newly developed and ongoing to support and complement this SPP Roadmap, including the SCP Roadmap and Actions (2022-2025) and the Circular Economy Strategy and Action Plan (2021-2025). 17 Other policies, action plans and regulations Sectoral Strategy and Development Plans, Laws and Regulations NSDP 2019-2023, 2024-2028 Rectangular Strategy 2050 Vision Figure 1: The Policy Hierarchy of Cambodia Cambodia has announced the SCP Roadmap and Actions for 2023-2035, which elaborates on five pillars to enable sustainable investment, including the national budget, partnerships with development agencies, partnerships with the private sector, sustainable public procurement, incentives for responsible investment, and innovating financing by the public and private sectors: i) Sustainable Production, ii) Sustainable Distribution, iii) Sustainable Consumption, iv) Sustainable Investment, and v) Values for sustainability. Action 3 of pillar five (Sustainable Consumption) is working on a strategy for Cambodia’s public sector institutions and agencies to procure environmentally sustainable products and services - the Sustainable Public Procurement. SPP is one of the program interventions defined in the SCP Roadmap and Actions (2022-2025) and the Circular Economy Strategy and Action Plan (2021-2025) (Figure 2). Figure 2 is a range of sector-specific regulations, strategies and policies which have been adopted that to some extent support SCP. Currently, this cycle is being designed in tourism, energy, manufacturing and building construction sectors. 18 Waste Design for Management sustainability Cleaner production Sustainable and resource lifestyles efficiency Sustainable Sustainable marketing transport Sustainable Eco-Labelling Procurement certification Figure 2: Policy and program interventions of Cambodia’s Roadmap for SCP, adapted from UNEP, 2012 The CSDGs (2016-2030) comprises 18 Goals, 88 nationally relevant targets, and 148 globally and locally defined indicators. Under CSDG 12, Cambodia selects targets 12.4 (Environmentally sound management of chemicals and wastes) and 12.5 (Reduce waste generation through prevention, reduction, recycling, and reuse). However, targets and indicators of SPP are not determined in the CSDGs. The table below (Table 1) shows the targets and indicators of responsible consumption and production in the CSDGs. Target Indicator 2022 2023 2024 2025 2026 2027 2028 2029 2030 12.4 By 2020, 12.4.1 5% 5% 5% 10% 10% 10% 10% 15% achieve the Percentage environmentally of release sound reduction of management of Persistent chemicals and Organic wastes Pollutants throughout (POPs) to their life cycle, the in accordance environment with agreed (%) international 12.4.2 5% 5% 5% 10% 10% 10% 10% 15% frameworks, Percentage and significantly of release reduce their reduction of release to air, mercury water and soil (Hg) to the 19 in order to environment minimize their (%) adverse impacts 12.4.3 5% 5% 5% 10% 10% 10% 10% 15% on human Effectivenes health and the s environment managemen t of hazardous waste and biological and radioactive waste (%) 12.5 By 2030, 12.5.1 195 198 200 210 215 222 230 240 substantially National reduce waste recycling of generation materials through used (1000 prevention, tons) reduction, recycling and reuse Table 1: Cambodia SDG 12 Targets and Indicators Cambodia has issued legal frameworks governing procurement to regulate and coordinate the procurement of public institutions at national and sub-national levels. The MEF is the responsible ministry with the authority and responsibility over developing public procurement policy and enforcing the Law on Public Procurement. The Law on Public Procurement was promulgated in 2012, and Sub-Decree number 105 dated 18 October 2006 on Public Procurement. The government issued Sub-Decree number 13, dated 23 February 2015, on the procedure for the organization and functioning of procurement committees and procuring entities for any entities that perform procurement. Furthermore, the MEF also issued the Prakas number 381 dated 15 June 2010 on implementing public procurement rules and regulations. The public procurement is under the jurisdiction of MEF, mandating the development of public procurement policy and its subsidiary bodies. The General Department of Public Procurement (GDPP), under the supervision of MEF, is responsible for designing methods of procuring, including bids by international competition, bids by domestic competition, price consulting, and price survey, and oversees all procurement activities are fulfilled based on the mentioned Law, Sub-Decree and Prakas. However, this, MoE has drafted the Environment and Natural Resource Code (ENRC, June 2022). The latest version of the draft ENRC defines Green Public Procurement as a part of Sustainable Consumption and Production, which locates in Book 3: Sustainable Consumption and Productions, Chapter 1: General Provision, Section 2: Sustainable Public Procurement. 3.3 Challenges for SPP Some challenges for implementing SPP in Cambodia are defined in different themes as detailed below to support the green products and services. a. Legal Instruments The current law and its sub-legislation do not provide a comprehensive legal background to move 20 from conventional procurement toward green or sustainable procurement. The practical guidance or procedure for procurers is fixed and defined in law and its sub-legislation as a process that addresses SPP or environmental criteria – green products and services. The procurement process targets only value-for-money rather than green products or services. The procurement process is a single approach applying to all government ministries or procuring entities. The Green or Environmental Criteria are yet defined. There is no specific policy, strategy, or regulation established to provide direction and steps for implementing SPP besides the Law on Public Procurement. The government has not offered enough resources to develop policies and strategies, practical guidance, and clear milestones, particularly for the design of eco-labels, green building certification, eco-tourism, and green public procurement. The common issues that have happened in the government procurement process for addressing the SPP are: 1. Green Procurement Procedure: This is to ensure the integration of sustainability issues at all stages of the procurement which concentrates on the product with energy efficiency, and composting: i) identifying needs and demand management; ii) pre-qualifying and qualifying suppliers; iii) developing specifications and evaluating bids; iv) awarding contracts; and v) contracting management. 2. Certification or Verification (see section b below) 3. Budget: The estimation of costs of implementation of SPP action plan and provision for support to procuring agencies. b. Certification or Verification of Green Products and Services The standard approach applies to all government ministries to implement the environmental criteria for green products and services. The individual approach to green criteria and technical specifications for green products and services within line ministries for procuring entities are yet available. The procuring entities of each ministry would not be allowed to change any procedure or criteria without approval from MEF. c. Availability of Green Products and Services in the market: In Cambodia, the market for green products and services is not yet widely available. There is no available consolidated or common standard and certification for green products and services accepted by the joint-government institutions. The list of green products and services has not been standardized. The statistic related to the total amount and/or cost of green products and services contributing to GDP has not been studied. Furthermore, the incentive schemes for the private sectors (producers/manufacturers) to produce and provide green products and services are strong enough. d. Human Resources and Financial Resources The knowledge of the procuring entities officers of government ministries on Green or Environmental Criteria is still low. Almost all procurements focus on Value for Money. Furthermore, due to insufficient resources, including human and financial capacity, for promoting the implementation of SPP across all sectors, this will require the commitment and allocation of resources from various government institutions at the national and sub-national levels. In addition, the government should mobilize private sectors and public-private partnerships for green products and services to support 21 the SPP. The important work to be done is to develop a list of priority product groups and services for SPP, focusing percentage of green procurement and environmental impacts and budgeting versus value- for -money comparative study. 3.4 Benefits of SPP for Cambodia Cambodia’s SPP will generally contribute to global efforts toward achieving more sustainable consumption and production patterns under SDG 12, in particular SDG 12.7.1, which will become voluntary indicators. Furthermore, the current Strategic Plans and Actions, such as SCP Roadmap and Actions and Circular Economy Strategy and Actions, will benefit from SPP implementation. Through Sustainable or Green Public Procurement, the Cambodian government could be a country where the key policy objectives deliver strong market signals to produce sustainable or green products and use environmentally friendly processes. The idea of going green government will also impact private sectors, particularly small and medium enterprises (SMEs), due to the increasing demand to supply the government public procurement. In addition, this initiative will help reduce the production cost of sustainable or green products, use environmentally friendly processes, and make them more affordable. Furthermore, the transparent and fair process of SPP will become an avenue of environmental criteria and/or green technical specifications and affect the value-for-money concept. Finally, sustainable or green products and services will release the pressure on the environment over the life cycle of producing, using, and disposing of purchased items. From a study carried out by Oeko Institute Research17 for potential products and services for Cambodia, twenty (20) products and services were selected and validated, considering their high relevance for public procurement and the environment. This study laid out the scenario for implementing SPP for the 20 selected products and services, leading to annual Green House Gas (GHG) emission reduction between 56,200 t CO2e and 168,700 t CO2e18. This is equivalent to annual GHG emissions of 80,000 to 241,000 Cambodian citizens, or GHG emissions of between 0.48% and 1.46% of the total Cambodian population. In terms of costing, this leads to annual cost savings of between US$12,200,000 and US$36,500,000. However, Cambodia's total government expenditure is only 9% would be contributed by the selected 20 products and services. 17 Oeko Institute Research: Environmental and economic benefits of integrating ecolabel criteria in green public procurement (GPP) in Bhutan, Cambodia, Lao PDR, and Vietnam. 2022 18 Carbon dioxide equivalent or CO2e means the number of metric tons of CO2 emissions with the same global warming potential as one metric ton of another greenhouse gas, and is calculated using Equation A-1 in 40 CFR Part 98. 22 4. Strategic Objectives and Actions The SPP's Strategic Objectives and Priority Actions follow SCP Roadmap and Actions 2024-2035, which will support Cambodia's sustainable consumption and production. The actions will create the green mechanism to promote government sustainable procurement policy and legal framework, capacity development, and support economic, social, and environmental development, in particular, reduce energy consumption, increase resource efficiency, generate less waste, consider on the bio- degradable production and minimize pollution. Timeline 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2033 2034 2035 Short Term [ST] Long Term [LT] Medium Term (MT) SO1: Policy and Legal Instrument Development and Institutional Arrangement Timeline Government Relate DP Priority initiative ST MT LT Agency GIZ, EU, MEF*, MoE, Switchasia 1. Develop Sub-degree/Prakas on criteria for MISTI, MoT, green products and green services and MoC, MASCP certification system for issuing certified label TWG and other (eco-labelling, and sustainable products and competent services) authorities 2. Set up legal framework (Joint- MEF and Prakas/Proclamation) a sustainable/ green MoE, SCP procurement standard, under the MoE and TWG MEF MEF MoE GIZ, EU, 3. Set up a strategy and action for designing and MISTI, MoT, Switchasia implementation of voluntary schemes of SPP MoC, MAFF SCP in Cambodia that promotes the eco- TWG and other sustainability of products and services competent authorities MoE, MISTI, GIZ, EU, MoC, MEF, Switchasia 4. Develop a list of green products and services to MoT, MAFF, be published and disseminated to all public SCP TWG and procuring entities the competent authorities 23 MEF & MoE GIZ, EU, 5. Designate inter-ministerial committee for Switchasia MISTI, MoT, piloting the SPP (i.e., MEF, MoE, MoI, etc.) for MoI, MoC, and approved/agreed sustainable products and other services by the inter-ministerial procuring competent entities authorities *Bolded text designates lead Ministry or Agency SO2: Environmental Criteria Development Timeline Government Relate DP Priority initiative ST MT LT Agency GIZ, EU, 1. Conduct a study of status quo and analytical Switchasia option for developing Cambodia’s eco-labeling MoE, MoT criteria and certification system (i.e., Green MISTI/ISC Globe Certification, ASEAN Green Hotel Award etc.,) MoE & MEF, 2. Design environmental criteria and performance MISTI, requirements for priority products and services to be procured or bidding process by the public MME, procuring entities MoH, MoT, MAFF, and SCP TWG 3. Design criteria and standards of eco-labelling GIZ, EU, and sustainable public procurement program MoE & MEF, Switchasia for sustainable products and services for MISTI, MME, selected pilot ministries (i.e., for sustainable MoH, MoT, cookstoves, household appliances, electronics, MAFF and some office supplies, and other domestic SCP TWG household items) GIZ, EU, MoE & MEF, Switchasia 4. Design evaluation criteria for assessing MISTI, MME, performance of sustainable procuring entities MoH, MoT and improving bidding process and documents and SCP TWG GIZ, EU, 5. Update criteria and standards every 3 or 5 years MoE/MEF, Switchasia of Ecolabelling and sustainable public MISTI, MME, procurement and expand the pilot selected MoH, MoT institution/ Ministry and SCP TWG 24 SO3: Capacity Building and awareness raising Governmen Relate DP Timeline Priority t Agency initiative ST MT LT GIZ, EU, 1. Prepare the training of trainer manual on Switchasia sustainable public procurement system and green MEF, MoE, product and service identification (led by MEF and MISTI and participating procuring entities of selected SCP TWG ministries) 2. Set up technical guidance to ministries and agencies in implementing the sustainable MEF, MoE, procurement standards and implement MISTI, and monitoring and reporting on the standards i.e., SCP TWG environmental standard bidding documents and process, awarding and evaluation criteria. MEF & GIZ, EU, 3. Strengthen capacity of industry/private sector on MISTI MoE, , Switchasia monitoring and reporting resource efficiency and MoEYS, environmental parameters for compliance MoInfo and monitoring and reporting SCP TWG 4. Establish the communication mechanism on GIZ, EU, MoE, MISTI, sustainable public procurement through social Switchasia MEF, media (Develop social platform – social media MoEYS, (Facebook), TV talk show, website,… etc.) to get MoInfo, and more knowledge on eco-sustainability of products SCP TWG or services. SO4: Monitoring, and evaluation Timeline Governmen Relate DP Priority initiative ST MT LT t Agency GIZ, EU, MEF, MoE, Switchasia 1. Establish M&E system for SPP implementation and covering indicators and targets: TWG on SCP 2. Conduct SPP assessment to decide level of success, MEF, MoE, barriers and areas of improvement in the SPP pilot and SCP project. TWG GIZ, EU, 3. Assess the level of understanding or awareness of MEF, MoE Switchasia procurers or planners in implementing SPP and SCP guidelines, process and implementation plan TWG 25 4. Develop SPP monitoring and evaluation systems GIZ, EU, (E-procurement system) for tracking progress Switchasia MEF, MoE against the institutional level of SPP governance, sub-national number of participating public institutions, administrati percentage of green products and services, ons and SCP environmental benefits from SPP implementation, TWG and market development of environmentally sustainable solutions SO5: Networking and Private Sector Engagement Timeline Governmen Relate DP Priority initiative ST MT LT t Agency GIZ, EU, 1. Create a link or join network among national and Switchasia MoE, MEF, regional stakeholders (for the purpose of sharing MISTI, and the research results, best practices, knowledge TWG on SCP and skills …etc.) 2. Become a focal point or a member of regional MoE, MEF, working group for the harmonization of MISTI, and sustainable public procurement practices and TWG on SCP measuring SPP benefits MoE & MEF, GIZ, EU, 3. Create sustainable award program for sustainable Switchasia MISTI, and product producers and service providers TWG on SCP 4. Establish an annual national forum between GIZ, EU, government and private sector in information Switchasia exchange of demands and supplies of MEF, MoE, sustainable/green products and services, MISTI, and (Information sharing through forum/ TWG on SCP workshop/symposium on discussion on best practice) GIZ, EU, 5. Create online database of private sector or Switchasia MEF, MoE, industry supplying green products and services to MISTI, MoC public access 26 5. Institutional arrangements In 2021, the government issued a new Sub-Decree on the function and organization of the Ministry of Environment, which established a new General Directorate of Policy and Strategy, which is a replacement for the General Secretariat of Sustainable Development (GSSD). GSSD was functioning as a secretary of the National Council for Sustainable Development (NCSD). The National Council for Sustainable Development (NCSD) has been designated to lead inter-governmental agencies to implement and mainstream of Sustainable Development Goals (SDG) into relevant sectors and set Cambodia’s vision, goals, and objectives for SDG, the SCP is one of the SDGs as a SDG12, which SPP is one of the five pillars of the SCP Roadmap and Actions 2022-2035. NCSD establishes the SCP Technical Working Group (SCPTWG), which oversees the development of the SPP Roadmap and Actions. For SPP Roadmap and Actions, MEF will work closely with MoE under the SCPTWG to implement the strategic objectives by engaging with other ministries, entities, donors, producers, and service providers. Members of SCPTWG as a joint mechanism was steered by NCSD efficiently and five main ministries, namely the Ministry of Economic and Finance (MEF), the Ministry of Environment (MoE), the Ministry of Commerce (MoC), the Ministry of Planning (MoP) , and the Ministry of Industry, Science, Technology, and Innovation (MISTI) which are showing commitment to corporate these SPP actions in their ministry. Figure 3 provides the detailed stakeholders in SPP implementations. RGC G UNDP DPs NCSD GGG Members Mo SCPTWG thers M F SCP Roadmap and Private Sector MoP Ac ons M ST producers and MoC service providers SPP Roadmap and Ac ons Figure 3: Relevant Ministries interested in Implementing SPP 27 6. Budget and Financial Mechanism The implementation of SPP shall be based on the national budget as the piloting is for government public procurement. To broaden the scope of work defined in the strategic objectives and action plan, the national development partners could be taking part in implementing the SPP action plan. ntegrating funding for the SPP priority actions into Cambodia’s national budget will provide an important budget foundation for implementing the SPP Roadmap. Line ministries and sub-national administrations are responsible for designing policies, regulations, programs and proposed fund for this procurement through: a.) National budget for sectoral development strategies and investment; b.) National funds dedicated to environmental and social improvements; c.) Non-governmental organizations and not-for-profit initiatives; and d.) Private investment (domestic and international resources). 28 7. Monitoring, Evaluation and Learning The implementation of SPP will span from 2023-2035. This period will be classified into 1) Short term 2023-2025, 2) Medium Term 2026-2030, and 3) Long Term 2031-2035 which first three years and every five years from the second and third phases to evaluate progress and correction to ensure the Strategy and Actions remains on track. The monitoring and evaluation framework with indicators and targets listed in appendix 3 will be used to monitor the planned activities and evaluate the impact. The monitoring and reporting methodology and formats will be standardized to ensure a consistent purpose of action, which will help to observe progress accurately. Furthermore, the adaptations are used where required. The financial and operational sustainability of the Priority Actions will be monitored whether they are still functional or operational as planned. This also helps the SCPTWG or designated new SPP committee can take any interventions to adjust undeliverable activities. 29 7.1 Proposed Monitoring and Evaluation Framework SO1: Policy and Legal Instrument Development and institutional arrangement Timeframe Expected results (indicators and Leading Relevant Private Sectors, and ST MT LT Priority Actions milestone) Agencies DPs 2024- 2028- 2032- 27 31 35 1. Review existing Law on Public Entry points for integration SPP MEF, GIZ, WB, ADB, IMF, EU, UNEP, ✓ Procurement and related Policies are identified from existing law GGGI, FASMEC, Cambodia which will identify entry points for on public procurement and Chamber of Commerce (CCC) improvement and therefore, support related policies SPP development in Cambodia: Sustainable/green procurement a. Integrate sustainable/green guidelines/standards were MEF and procurement guidelines/standards integrated into existing public MoE, SCP into the existing public procurement system and TWG procurement system under the subsequently into the law on MEF (including the amendment of public procurement public procurement law) b. Set up legal framework (sub- Sub-degree/a joint prakas/ degreen/Joint- Proclamation on the MEF, MoE, Prakas/Proclamation) a implementation of MISTI, SCP sustainable/green procurement sustainable/green procurement TWG and standard, under the MoE and MEF were set up and introduced to other public entities competent authorities 30 Timeframe Expected results (indicators and Leading Relevant Private Sectors, and ST MT LT Priority Actions milestone) Agencies DPs 2024- 2028- 2032- 27 31 35 2. Develop Prakas/ Proclamation on A Prakas/ Proclamation on MEF, MoE, ✓ criteria for green products and green criteria for green products and MISTI, MoT, services and certification system for green services and certification MoC, SCP issuing certified label (eco-labelling, system for issuing certified label TWG and and sustainable products and services) has been developed and other implemented competent authorities 3. Set up a strategy and action for A strategy and action for MEF MoE GIZ, WB, ADB, IMF, EU, ✓ ✓ designing and implementation of designing and implementation of MISTI, MoT, UNEP,, FASMEC, Cambodia voluntary schemes of SPP in Cambodia voluntary schemes of SPP has MoC, Chamber of Commerce (CCC) that promotes the eco-sustainability of been set up to promote the SCPTWG and products and services sustainable product and services other competent authorities 4. Develop a list of green products and List of green products and MoE, MISTI, GIZ, WB, ADB, IMF, EU, UNEP, ✓ ✓ services to be published and services has been developed and MoC, MEF, , GGGI, FASMEC, Cambodia disseminated to all public procuring made available for all public MoT, SCP Chamber of Commerce (CCC) entities procuring entities TWG and competent authorities 5. Designate inter-ministerial committee for Inter-ministerial committee have MEF, MoE GIZ, WB, ADB, IMF, EU, UNEP, ✓ piloting the SPP (i.e., MEF, MoE, MoI, been established and functioned MISTI, MoT, , GGGI, FASMEC, Cambodia etc.) for approved/agreed sustainable to oversee and agree on the MoI, MoC, Chamber of Commerce (CCC) products and services by the inter- sustainable products and and ministerial procuring entities services for selected ministries in competent doing pilot authorities 31 32 SO2: Environmental Criteria Development Expected results (indicators Timeframe and milestone) Leading Relevant Private Sectors, and ST MT LT Priority Actions Agencies DPs 2024- 2028- 2032- 27 31 35 1. Conduct a study of status quo and analytical A study of status quo and MoE GIZ, Cambodia Chamber of ✓ option for developing Cambodia’s eco- analytical options for eco- MISTI (ISC) Commerce, FASMEC, GMAC, labeling criteria and certification system (i.e., labeling criteria and and SCP TWG GGGI, UNDP, UNEP, EU Green Globe Certification, ASEAN Green certification system Switch Asia Hotel Award): produced and used by a. Prepare Sustainable Products and relevant ministries and Services Market study, stakeholders 2. Design environmental criteria and Environmental criteria and MoE, MEF, GIZ, Cambodia Chamber of ✓ performance requirements for priority performance requirements MISTI, MME, Commerce, FASMEC, GMAC, products and services to be procured or for priority products and MoH, MoT, GGGI, UNDP, UNEP, EU bidding process by the public procuring services have been designed and SCP TWG Switch Asia entities for procuring or bidding process by the public procuring entities 3. Design criteria and standards of eco-labelling Criteria and standards of MoE, MEF, GIZ, Cambodia Chamber of ✓ and sustainable public procurement program eco-labelling and MISTI, MME, Commerce, FASMEC, GMAC, , for sustainable products and services for sustainable public MoH, MoT, GGGI, UNDP, UNEP, EU selected pilot ministries (i.e., for sustainable procurement program for and SCP TWG Switch Asia cookstoves, household appliances, sustainable products and electronics, some office supplies, and other services have been domestic household items) developed and used 4. Design evaluation criteria for assessing Evaluation criteria for MoE, MEF, GIZ, Cambodia Chamber of ✓ performance of sustainable procuring assessing performance of MISTI, MME, Commerce, FASMEC, GMAC, entities and improving bidding process and sustainable procuring 33 Expected results (indicators Timeframe and milestone) Leading Relevant Private Sectors, and ST MT LT Priority Actions Agencies DPs 2024- 2028- 2032- 27 31 35 documents entities and improving MoH, MoT GGGI, UNDP, UNEP, EU bidding process and and SCP TWG Switch Asia documents have been developed and disseminated 34 SO3: Capacity Building awareness raising Timeframe Expected results (indicators Leading Relevant Private Sectors, and ST MT LT Priority Actions and milestone) Agencies DPs 2024- 2028- 2032- 27 31 35 1. Prepare the training of trainer manual on ToT manual on sustainable MEF, MoE, GIZ, CCC, FASMEC, GGGI, ✓ ✓ sustainable public procurement system and public procurement system MISTI and SCP UNEP, UNDP, EU, and Switch green product and service identification (led and green product and TWG Asia by MEF and participating procuring entities of service identification have selected ministries) been prepared and used 2. Set up technical guidance to ministries and Technical guidance on MEF, MoE, GIZ CCC, FASMEC, GGGI, ✓ ✓ agencies in implementing the sustainable sustainable public MISTI, and SCP UNEP, UNDP, EU, and Switch procurement standards and implement procurement and its TWG Asia monitoring and reporting on the standards monitoring and reporting i.e., environmental standard bidding has been established and documents and process, awarding and used to train public evaluation criteria. procuring entities 3. Strengthen capacity of industry/private sector The capacity of MEF, MISTI, CCC, FASMEC, GGGI, UNEP, ✓ ✓ ✓ on monitoring and reporting resource industry/private sector on MoE, MoEYS, UNDP, EU, and Switch Asia efficiency and environmental parameters for monitoring and reporting MoInfo and compliance monitoring and reporting, resource efficiency and SCP TWG environmental parameters for compliance monitoring and reporting has been enhanced 4. Establish the communication mechanism on A communication MoE, MISTI, GIZ, CCC, FASMEC, GGGI, ✓ sustainable public procurement through social mechanism on sustainable MEF, MoEYS, UNEP, UNDP, EU, and Switch media (Develop social platform – social media public procurement has MoInfo, and Asia (Facebook), TV talk show, website, etc.) to get been established and SCP TWG more knowledge on eco-sustainability of implemented products or services. 35 SO4: Monitoring, and evaluation Timeframe Expected results (indicators Leading Relevant Private Sectors, ST MT LT Priority Actions and milestone) Agencies and DPs 2024- 2028- 2032- 27 31 35 1. Establish M&E system for SPP M&E system for SPP MoE, MEF GIZ, EU-Switch Asia, UNEP, ✓ implementation covering indicators and developed and used and WB, and ADB, FASMEC, and targets: TWG on SCP Cambodia Chamber of - Number of ministries/agencies Sub-national Commerce parti

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