THE GREEN ECONOMY TRANSITIONING TO A NEW DEVELOPMENT PARADIGM Presenter: Dr. Justine Ram Designation: Director, Economics Department Date: 24 February, 2015

Presentation outline Introduction: Defining the Green Economy (GE) Caribbean rationale for GE Lessons Learnt Case Studies Assessing Project outcome Recommendations

Introduction DEFINITION OF THE TERM “GREEN ECONOMY” THREE CRITICAL ELEMENTS:  ECONOMIC  SOCIAL  ENVIRONMENTAL SUSTAINABILITY

Caribbean rationale for a GE Interest in the Green economy, revolves around its implications for the energy sector. Need to reduce dependence on fossil fuels through the development of indigenous alternative sources that are more sustainable with emphasis RE and EE within broader strategies to green key sectors.

Three converging issues: Climate change – highly vulnerable The global economic crisis – laid bare the fragilities of our economies Sustainable development – the need for social, economic progress with environmental safeguards

Conceptual framework for Caribbean GE

Greening production

Greening Production – Economic Impact

Greening Production – Environmental Impact

Greening Consumption

Greening Outcomes

Case Studies TO PROVIDE INFORMATION AND DATA TO POLICY MAKERS ON:  EMPLOYMENT BENEFITS OF RENEWABLE ENERGY.  FOREIGN EXCHANGE IMPACTS.  COST COMPETITIVENESS OF RENEWABLE ENERGY ALTERNATIVES.  ENVIRONMENTAL IMPACT.  POLICY AND INSTITUTIONAL ENVIRONMENT.  OTHER BARRIERS TO SECTOR INVESTMENT (FOR EXAMPLE, INADEQUATE ACCESS TO FUNDING; SKILLS; PLANNING DATA ETC.).  OTHER ISSUES RELEVANT TO THE DEVELOPMENT OF THE SECTOR.

JAMAICA: Wigton wind farm

Lessons from Wigton IMPORTANCE OF:  AN APPROPRIATE POLICY AND REGULATORY FRAMEWORK TO GUIDE INDUSTRY DEVELOPMENT  APPROPRIATE PRICING POLICY TO INCENTIVISE INVESTMENT  ADAPTABILITY OF POLICY AND REGULATORY FRAMEWORK TO CHANGING DATA, INFORMATION  REQUISITE RESOURCES (FINANCIAL, HUMAN) FOR \ EFFICIENT AND EFFECTIVE POLICY AND REGULATORY IMPLEMENTATION.

ST. LUCIA: Sandals La Toc

Lessons from Sandals La Toc THE IMPORTANCE OF:  AN APPROPRIATE POLICY AND REGULATORY FRAMEWORK  INCLUSION OF THE TOURISM INDUSTRY IN THE RENEWABLE (RE) ENERGY AND ENERGY EFFICIENCY (EE) POLICY FORMULATION  TOURISM ENERGY AND WASTE MANAGEMENT POLICY FOR ENVIRONMENTAL SUSTAINABILITY  ACCESS TO FINANCE

BARBADOS: Williams Industries

KEY LESSONS FROM THE USE OF SOLAR POWER IN THE CONSTRUCTION INDUSTRY THE IMPORTANCE OF A STABLE POLICY REGIME ACROSS POLITICAL ADMINISTRATIONS THE NEED FOR EFFICIENT IMPLEMENTATION OF FISCAL INCENTIVES HUMAN RESOURCE DEVELOPMENT AS A CRITICAL ENABLER OF ALTERNATIVE ENERGY DEVELOPMENT THE NEED FOR EFFECTIVE COMMUNICATIONS WITH STAKEHOLDERS TO ACCOMPANY GREEN ECONOMY INITIATIVES THE IMPORTANCE OF CHAMPIONS IN RE AND EE DEVELOPMENT

Assessing project outcomes How is the project greening the sector/economy? Was the project facilitated by government policy, and if so, which? What is the value of the investment? What are the expected outcomes of the project? For completed projects, have outcomes been met? What is the value of the project's output? What is the employment generated? How has the project saved, or will save, hydrocarbon energy, especially imported? What is the waste disposal strategy? How will the project contribute to reducing greenhouse gas emissions? How will the project contribute to reducing air/water pollution? What are the other environmental impacts of this project? What are the social benefits of the project?

Outcomes: Cost comparisons

Cost Comparison including externalities and CC impacts

Selected recommendations Make climate change mitigation a policy priority even though the Region is not a major emitter of greenhouse gases. Mitigation contributes to adaptation as it involves the use of RE and energy efficient technology. In reducing their own carbon footprint, the countries are helping to strengthen their economic resilience. A policy environment supportive of mitigation also would be favourable to development of the RE sector. Ensure policy stability as much as possible and reduce the occurrences of policy changes being made automatically with change of government. Strengthen inter-sectoral linkages to place RE development in the context of regional and national sustainable development. Pool funding from disparate sources to address scale and fiscal issues at the national level.

Selected recommendations Use market based instruments to encourage the use of energy efficient technologies in homes and businesses. Integrate RE and ‘greening’ into building design, architecture and building codes. – Develop the information base needed to set policy goals, targets and strategies and to reduce the risk of project failure. Assess the scale at which RE can be accommodated on the electric utility grid. A pooled financing mechanism is desperately needed, along the lines of SIDS-DOCK support programme for SIDS, but specifically for the Caribbean.

Questions? Thank you!