Joint Press Release EU and Germany step up the partnership with Cambodia in agriculture to accelerate Green Growth and Decent Jobs

Phnom Penh, Cambodia, 5^th September 2024: The European Union Ambassador to Cambodia, H.E. Igor Driesmans, the Chargé d'Affaires and Head of German Development Cooperation, Mr. Jost Kadel, and the Minister of Agriculture, Forestry and Fisheries (MAFF), H.E. Dith Tina, have officially launched a project to enhance sustainability, export, competitiveness and inclusiveness of Cambodia's cashew nuts and pepper industries, focusing on increasing local value addition and strengthening national systems governing food safety and climate-resilient agriculture. It will also ensure decent work practices for the workers, and to increase capacity of producers and processors to adopt sustainable practices and relevant standards to meet export requirements of markets including of the European Union.

The EU-German CAPSAFE project (EU-German Cambodia Partnership for Sustainable Agriculture and Food systems) is part of the Team Europe Initiative (TEI) to promote green agribusiness and decent jobs in Cambodia. This initiative by European partners brings increased productivity in targeted value-chains by promoting green technology, agro-ecology and responsible investment (including deforestation-free) in production and agro-processing. With a 27 million USD joint funding from the European Union and the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany, the five-year project will be implemented by GIZ in collaboration with the Royal Government of Cambodia, represented by the MAFF in at least four key provinces including Kampong Thom, Kratie, Tboung Khmum, and Kampot.

Speaking at the event, EU Ambassador to Cambodia, Igor Driesmans, emphasised the importance of investing in sustainability and social due diligence to expand access to niche markets for Cambodian agriculture products. He stated "This initiative reflects the EU and Germany's commitment to promoting green growth and creating decent jobs in Cambodia in response to Cambodia's increased commitment on green transition. We hope to improve the cashew nut and pepper value chains for the benefit of farmers and SMEs, while promoting environment and social standards for exports to, and investments from, the European Union".

The Chargé d'Affaires and Head of German Development Cooperation, Jost Kadel, emphasised the critical role of agriculture in Cambodia's economy and its importance in achieving Cambodia's Nationally Determined Contributions (NDCs) under the Paris Agreement. "Our primary objective for this project is to enhance Cambodia's competitiveness and climate resilience in the agricultural sector, resulting in greater incomes, expanded processing capacities, and enhanced market access for all stakeholders involved".

MAFF Minister,H.E. Dith Tina, emphasised that "As Cambodian agriculture progresses toward modernity with inclusive community practices and sustainable techniques, the CAPSAFE project represents a crucial step in strengthening our cashew and pepper value chains. By embracing green growth and enhancing export competitiveness, we are not only improving the livelihoods of our farmers but also ensuring that Cambodia contributes to Carbon Net Zero and remains resilient in the face of climate challenges. This cooperation with our European partners highlights our shared commitment to building a prosperous future for all."

The event also showcased successful results of another project under the Team Europe approach - "Strengthening the Climate Resilience of Agricultural Systems in Cambodia and Vietnam" (CRAS), funded by Germany and concluding in September 2024. In Cambodia, CRAS has enhanced farming techniques and supply chain organisation to help farmers adapt to climate change, gain access to new markets and introduced public-private dialogue formats to align interventions for the selected commodity chains.