Faculty Publications  | Volume 11     |    January-June 2026   |    Pages 33 – 70

The Biofuels Industry in Cambodia: Building a Sustainable Business Environment for Replacing Fossil Fuels

Received: January 2026  |  Revised: May 2026  |  Accepted: July 2026  |  DOI: 10.62458/fpf26cha2

Kenneth Paul Charman, PhD  (Corresponding author)
CamEd Business School
[email protected]
Socheata Sao
Royal University of Law and Economics
Dinesh Elango
American University of Phnom Penh
Nak Srey
Sarana Law Firm
Leang Sok
Cambodia Center for Mediation

DOI: https://doi.org/10.62458/fpf26cha2

 

SYNOPSIS

This case study focuses on the biofuels sector from the perspective of policy makers in Cambodia, the Ministry of Mines and Energy (MME) and the Ministry of Agriculture, Forestry and Fishery (MAFF). It examines the role of biofuels in Cambodia’s National Energy Plan 2030-50. Biofuels are a source of energy which has gained growing worldwide attention, especially since the 2010s and early 2020s. It is a diverse industry with multiple sources of both supply and demand. Biofuels are derived from food sources, agricultural waste and forestry, algae, and engineered biomass. The case study focuses on the opportunities for development of biofuels in Cambodia, which, like most ASEAN countries, have a large rural population and significant areas under cultivation.

In 2026, Biofuels derived from agricultural waste already contributed a significant amount to Cambodian energy use at the domestic level in rural areas. The case study sets out the diversity of sources and uses of biofuels, and distinguishes between possible scenarios of growth at the local level, and large-scale plantations, which would provide employment and potential export revenue. The case study also puts forward the requirements for infrastructure and a policy and regulatory environment to develop a competitive and sustainable environment for growth in the biofuels sector to become a viable alternative to fossil fuels. Inherent in the case are the requirements to develop and integrate a biofuels sector with a fossil fuels sector, and the trade-offs in targeting growth in biofuels, particularly in the context of food security and competition for land-use. The focus is on the how to support the development of the biofuels sector, the contribution that biofuels can make to energy supply, and building a sustainable business environment to integrate fossil fuels into Cambodia’s energy plan.

 

Acknowledgement
This work was produced under the RWI Human Rights Capacity Development Programme in Cambodia and The Regional Asia and Pacific Programme: Advancing Just Transitions to Climate Resilient and Nature-Positive Societies with financial support from Swedish International Development Agency (Sida).

 

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