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
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DEFINITION OF THE TERM “GREEN ECONOMY”
THREE CRITICAL ELEMENTS:
 ECONOMIC
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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
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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
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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.
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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.
Thank you!
Questions?