IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
IV Regional Expert Group Meeting GRULAC-UNIDO
Industrial policies to promote growth
based on resource efficiency
(waste and energy)
Quito, Ecuador, 24 and 25 September 2012
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
• Country: BARBADOS
• Institution: THE DIVISION OF ENERGY AND TELECOMMUNICATIONS
• Name of Participant: BRYAN HAYNES
• Position of Participant: CHIEF PROJECT ANALYST
• Responsibilities: COORDINATION ENERGY PLANNING AND RESEARCH
• Industrial energy and/ or waste management policies:
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
TABLE OF CONTENTS:
1. Formulation of policies and regulatory frameworks
2. Institutional management
1. Monitoring systems
1. Sensitization
1. Funding
2. Promotion of national/ local private sectors
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
1. Formulation of policies and regulatory frameworks (I)
• Most of the policy relating to industry is currently documented
within the medium term strategy for Barbados (2010-2014) which is
a document that outlines policy of all the major sectors. There are
also supplemental policies announced during the Budgetary Speech
in Parliament annually.
• The Government of Barbados is currently in the process of
developing an industrial policy.
• A Green Economy Scoping Study was completed this year. It is
anticipated that the findings of the study will inform the drafting of
the industrial policy. This study emerged form Barbados’ desire to
establish a Green Economy.
• Addtionally Barbados worked with the IADB to develop a National
Sustainable Energy Framework to inform its policy on energy which
is currently under consideration.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
1. Formulation of policies and regulatory frameworks (II)
• In Barbados Policy is normally formulated in a sectorwide manner
where the process include all the stakeholders.
• Policy is managed by the line Ministry/Department that is
responsible for the sector under consideration. There may be a
situation where more than one entity would have responsibility for
managing particular elements of policy.
• The Economic Affairs Division of the Ministry of Finance and
Economic Affairs is responsible for monitoring and informing the
Subcommittee on Economic Policy which is subject to the Cabinet
of Barbados.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
1. Formulation of policies and regulatory frameworks (III)
• Policy is usually integrated at the national level via a national
strategic planning process which stretches across both the public and
private sectors. All government agencies are involved in the process.
• The national plans are approved by the Cabinet of Barbados and may
be lodge at the Parliament as a green paper for debate and later
progress to a white paper to become law.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
1. Formulation of policies and regulatory frameworks (IV)
• Barbados is in the process of formulating its industrial policy and it
will commence the process on the 10th of October 2012 with a
town hall meeting withe stakeholders in the industrial sector.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
1. Formulation of policies and regulatory frameworks (V)
During Presentation of the Financial Statement and Budgetary
Proposals The Minister of Finance and Economic Affairs identified
specific objectives to develope production RE systems
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Government will provide financial assistance of BB$100 million in the
form of low-interest loans over a eight (8) year period to tool and
capitalize the RE and EE industry.
A zero rate of VAT will be applied to all RE and EE systems and
products produced in Barbados.
Developers, manufacturers and installers of RE products will be
granted an income tax holiday of 10 years.
Interest earned by financial intermediaries (including banks, credit
unions, and Finance companies) from financing the development,
manufacturing, and installations of RE and EE products and
technologies shall be free of withholding taxes for 10 years.
Household incomes from the sales of electricity from RE sources is
free of all taxes.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
2. Institutional Management (I)
• Barbados has a history of utilising a tripartite approach to policy
development which includes government, the private sector and
labour.
• In terms of competences a sectorwide approach is used which
would include skills in policy formulation, economics,
environmental planning, natural resources management,
international trade, health and safety and the environment.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
2. Institutional Management (II)
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Limitations in the coordination:– particularly the flow of data and
information between the sectors:
Institutional/personal capacity limitations:- limited human resources in
specific areas of energy efficiency and waste management. The are
some human resources but those resources are stretched thin.
Financial limitations concerning adaptation and adoption of
technologies: Like most other small island developing states the
accessing of funds to adequately capitalise programmes is significant
challenge.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
3. Monitoring Systems
• All government policy in Barbados is monitored by the Economic
Affairs Division of the Ministry of Finance and Economic Affairs. The
monitoring system tracks the status, progress, implementation
benchmark and indicators, targets, financial resources, and policy
initiative. Each government entity is required to report on the work
relating to policy being implemented on a quarterly basis.
• The reports are submitted to the Division of Economic Affairs who is
responsible for communicating the progress of policy to the Cabinet
of Barbados and its Committees.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
4. Sensitization
• Government policies and strategies are available to the public via
the internet as they are posted on the websites of government
agencies.
• Town Hall meetings are held to discuss the policy or strategy with
the general public before submitting for approval.
• Policy is presented to the public via the Government Information
System via television and radio.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
5. Funding
• Can the policy draw on resources to fund its implementation? If so,
please list/describe the main resources for funding.
• Funding is limited but traditionally the Government of Barbados
provides resources for some aspects of policy.
• In the case energy and the environment government received some
assistance from the Global Environmental Facility, and IDB for
example.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
6. Promotion of the national/local private sector(II)
• There is some technical and financial assistance support framework
in place which are geared toward competitiveness and retooling. At
the moment these programmes do not focus specifically on clean
technologies.
• The Special Technical Assistance Programme is administered by the
Barbados Investment and Development Corporation.
• Support is needed to improve the infrastructure for solid and liquid
waste management.
• Observations: There is a still the need to establish an enabling
environment to promote investment.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
6. Promotion of the national/local private sector(III)
• Limited technical knowledge in the application of the
technology. There are however a small number of companies in
the industrial sector that apply cleaner production technologies
and practices.
• The cost of the technology is considered to be restrictive by
some in the sector.
• There are no financial incentives specfically geared towards
cleaner production practices.
• There is infrastructure for the management of solid waste but
limited infrastrucutre to manage gaseous wastes.
• Observations: Government have been seeking to educate the
public more regarding the use of clean technologies.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
6. Promotion of the national/local private sector(IV)
•
There are no specific incentives to encourage the use of cleaner
Technologies, environmental services, and environmental
consultancy services. The Government is in the very early stages of
developing a framework for establishing specific incentives.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
6. Promotion of the national/local private sector(V)
• There are no institutional technical and financial assistance
mechanisms in place at this time to the service providers of
clean production.
• There is some knowledge of appropriate technologies and/or
providers of such but demand is low because the cost of the
technology is considered to be restrictive.
• Observations:- There is opportunity for investment but the
appropriate enabling environment needs to be improved.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
6. Promotion of the national/local private sector (I)
• In Barbados there are no specfic incentives that encourage the use
of clean technology.
• For instance, the Special Technical Assistance Fund provide
technical assistance support to manufacturers that wish to adopt
ISO standard for example is geared towards competitiveness.
• Under the 1984 Income Tax Amendment, taxpayers may directly and
fully deduct solar water systems from their taxes.
• More recently some imported renewable energy systems and
related equipment (including wind, solar photovoltaic and thermal,
biomass, and hydro) free of customs duties.
IV LAC EGM: Industrial policies to promote growth based on resource efficiency (waste and energy)
Please, send your presentation to the following address:
m.romano-blasco@unido.org
Thank you for your colaboration!