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THE POTENTIAL FOR GREEN GROWTH IN THE CARIBBEAN

CTA Regional Policy Briefing – Building resilience in small island economies : from vulnerabilities to opportunities

23-24 April 2012, Mauritius

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BACKGROUND

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BACKGROUND

The Caribbean Region: Small Island Developing States and Low-Lying Coastal States

Caribbean: 12 times more vulnerable than other regions (OECS SIDS more so)

Physical: Natural disasters, environmental degradation, loss of bio-diversity etc

Economic: lack of natural resources, small economies, limited markets, high transportation costs, external shocks, highly indebted, competitiveness

Social: poverty, social inequality, limited human resource base, crime etc

How then do we build resilience given the interplay of a multiplicity of inherent handicaps?

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WHAT IS GREEN GROWTH/ECONOMY?

UNEP:

“…results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. In its simplest expression, a green economy can be thought of as one which is low carbon, resource efficient and socially inclusive.”

XVII Meeting of the Forum of Ministers of the Environment of Latin America and the Caribbean:

“A system of economic activities related to the production, distribution, and consumption of goods and services that results in improved human well being over the long-term, whilst not exposing future generations to significant environmental risks and ecological scarcities. It is environmentally friendly and socially just.”

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FROM BROWN ECONOMY TO GREEN ECONOMY

TENETS OF GREEN GROWTH in the CARIBBEAN CONTEXT:

Natural Capital – Biodiversity: preservation, protection, promotion

Sectoral greening – tourism, agriculture, fisheries, infrastructure, transportation, manufacturing etc

Renewable Energy/Energy efficiency/low carbon technologies

Eco-innovation/technology/technology transfer/training/capacity

Enabling environment: legislative/legal frameworks, institutions, public policy

Investments – Private/Public/Partnerships

Citizen/consumer awareness and behavior

ACCESS TO FINANCE

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GLOBAL PARADIGM SHIFT?

Action at the global level:

United Nations - leading role – discursive shift

OECD – Green Growth Strategy

G20/G8 - Political impetus

Global Green Growth Institute – Technical assistance

Private Sector – Business strategies (CSR), investments

Civil Society Actors – Media, NGOs, Youth

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THE CARIBBEAN’S PERSPECTIVE

The Caribbean Region wedded to the Green Growth/Economy Agenda

Active participants in AOSIS and other regional and international fora

The BPOA, JPOI, MSI simpatico with green growth agenda

Regional Trade Agreements (EPA, CARICOM-Canada etc) – provisions for innovation, environment etc

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THE CARIBBEAN’S PERSPECTIVE

Most if not all CARICOM Member States making transition to a green economy

Political level:

Barbados Green Economy Strategy

Dominica Organic Isle Initiative

Guyana Low Carbon Development Strategy

OECS St. Georges Declaration (21 Principles)

Developing OECS Green Growth Strategy

Caribbean National Dialogues on Green Economy (CANARI/UWI/GEC)

Caribbean Investment Facility – emphasis on infrastructure, transportation, energy

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THE CARIBBEAN’S PERSPECTIVEMaking Headlines:

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THE CARIBBEAN’S PERSPECTIVEMaking Headlines:

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THE CARIBBEAN’S PERSPECTIVEAction on the Ground:

“Barbados to build first waste to energy plant at major landfill” Caribbean360 12.12.2012

“Caribbean’s largest solar plant for Jamaica” Stabroek News, 28.01.2012

“Awards of up to US$200,000 are offered for projects and enterprises to promote energy efficiency and access to renewable energy in the Caribbean region.” Caribbean360 10.12.2012

“EIB backs Caribbean Geothermal Scheme” EIB 2.02.2012

“Caribbean Sustainable Tourism Conference to include Green Investment Forum” Caribbean Environment and Energy Business Information Platform 7.03.2012

“Eastern Caribbean seeks funds for green growth agenda” Green Antilles 02.03.2012

“Taiwan committed to providing new technology to St. Kitts and Nevis”Caribbean Journal 28.12.2012

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WHY GREEN INVESTMENTS IN THE CARIBBEAN?

Viable tool for promoting resilience and sustainable development

Manageable testing ground for pilot projects in green tech

The Caribbean, specifically OECS, harbingers of regional integration/cooperation

Stable financial and capital market (OECS Economic Union, Common Currency etc)

Enable the Caribbean to capitalize on its assets - strategically located - business- and nature-friendly region.

Small size, highly educated and motivated populations and political stability

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CHALLENGES FOR GREEN INVESTMENTS

High Public indebtedness – erodes state capacity to invest

Middle Income Status – limits access to concessionary loans (island paradox)

Political disincentives?

Weak national bottom-up demand

Region wide approach/cohesion

Training and capacity in green sectors

Legal and regulatory frameworks are outdated/nonexistent

Tax code – need to promote shift to green investment

Once addressed: Unlimited Potential

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Charting a Greener Future in the Caribbean

This involves:

Nationally/Regionally

Best practices and centers/networks of excellence/smart partnerships

Integrated and cross sectoral policy development planning

Green Growth agenda at core of OECS Economic Union/CSME

Promotion of a Green Award for Enterprises (SMEs) (OECS initiative)

“Green collar jobs” across key sectors

SIDS-SIDS cooperation (research, academia, industry clusters)

Effective implementation/monitoring

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Charting a Greener Future in the Caribbean

Internationally:

SIDS Unit in UNDESA strengthened

Formal recognition of SIDS category – specialized treatment

Must address ecosystem services – REDD+, marine ecosystem services, emerging blue carbon frameworks

Closer partnership with advanced countries/institutions (tech transfer)

Easier access to climate/green financing for SIDS

Bolder involvement/action from MNCs operating in Caribbean

Maintenance of existing development finance/access to concessionary loans

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VISIT THE ISLANDS OF THE EASTERN CARIBBEAN