1 Ministry of Labour and Small and Micro Enterprise Development Republic of Trinidad and Tobago DRAFT GREEN ENTERPRISE DEVELOPMENT POLICY FOR MICRO AND SMALL ENTERPRISES AND COOPERATIVES 2013 TO 2016 Dr. Milan Jezic von Gesseneck, Team leader Particip GmbH Alan Cooper, Policy Analyst Enterprise Development Division, Ministry of Labour and Small and Micro Enterprise Development Glenn Lauren Moore, Associate Professional Enterprise Development Division, Ministry of Labour and Small and Micro Enterprise Development 2 ACKNOWLEDGEMENT We wish to express our thanks and appreciation to the International Labour Organization (ILO). The ILO assisted us with this process in May 2012 when it provided three (3) experts from its office in Turin, Italy to facilitate a three (3) day workshop on Green Enterprise Development. We would like to thank Mr. Giovanni Di Cola (Office in Charge), Mr. Kelvin Sargeant and the staff at the Caribbean sub-office in Port-of-Spain and to their colleagues in Turin. September 19, 2013 3 CONTENTS Abbreviations ............................................................................................................................................ 5 Glossary of Terms...................................................................................................................................... 6 1. BACKGROUND ................................................................................................................................... 7 1.1 Introduction .................................................................................................................................. 7 1.1.1 The work of MOLSMED in the Green Economy ........................................................................ 8 1.2 Methodology....................................................................................................................................... 8 1.3 Objectives and Use.............................................................................................................................. 9 1.4 Context: Policy, Legislation and Fiscal ................................................................................................ 9 1.4.4 Legislative Environment ............................................................................................................. 11 1.4.5 Fiscal Measures .......................................................................................................................... 11 2. PRIORITY SECTORS FOR GREEN MSE DEVELOPMENT ..................................................................... 13 2.1 Greening Waste Management ...................................................................................................... 13 2.2 Greening the Construction Industry ............................................................................................. 14 2.3 Greening the Tourism Industry ..................................................................................................... 15 2.4 Greening the Creative Industries and Fashion .............................................................................. 16 2.5 Greening the Energy Sector .......................................................................................................... 18 2.6 Greening Agriculture and Agro-Processing ................................................................................... 20 3. GREEN POLICY FOR MICRO AND SMALL ENTERPRISES AND COOPERATIVES ................................. 22 3.1 Goal and Objectives .......................................................................................................................... 22 3.1.1 Goal ............................................................................................................................................ 22 3.1.2 Objectives................................................................................................................................... 22 3.2 Key Principles .................................................................................................................................... 22 3.3 Policy Outcomes............................................................................................................................ 23 4. TOOLS FOR SUPPORTING GREEN MSES .......................................................................................... 25 1.1 Public Information on Greening and Green Jobs .................................................................... 25 1.2 Provision of Training in Standards for Green Business Operations ........................................ 25 1.2.1 National Integrated Business Incubator System ................................................................. 25 1.2.2 FairShare Programme ......................................................................................................... 25 1.3 Certification and Labelling ...................................................................................................... 25 1.4 Green Procurement ................................................................................................................ 26 4 1.5 5. Financing Mechanisms ............................................................................................................ 26 DEVELOPMENT OF GREEN MSE SECTOR BY MOLSMED ................................................................. 27 As indicated in the Situational Analysis, MOLSMED will focus on five (5) priority area where green MSE development can have the greatest and most effective impact, viz:......................................... 27 MOLSMED will seek out the expertise for training as well as funding for the development of these priority sectors with the goal of ensuring that they receive the optimal amount of support. .......... 27 5.1 Waste Management................................................................................................................ 27 4.2 Construction ............................................................................................................................ 28 4.3 Tourism ................................................................................................................................... 28 4.4 Creative industries .................................................................................................................. 29 4.4.1 4.5 Creative Industries with a tourism orientation ................................................................... 30 Energy and Transportation ..................................................................................................... 31 4.5.1 Energy ................................................................................................................................. 31 4.5.2 Transportation .................................................................................................................... 31 4.6 Agriculture............................................................................................................................... 31 6. IMPLEMENTATION .......................................................................................................................... 32 7. CONCLUSION ................................................................................................................................... 36 8. APPENDICES .................................................................................................................................... 37 5 Abbreviations CARIRI Caribbean Industrial Research Institute EMA Environmental Management Authority EDF European Development Fund GORTT Government of the Republic of Trinidad and Tobago H&S Health and safety IFOAM International Federation of Organic Agricultural Movements IMA Institute of Marine Affairs ISO International Standard Organisation MEEA Ministry of Energy and Energy Affairs MEWR Ministry of the Environment and Water Resource MFP Ministry of Food Production MFE Ministry of Finance and the Economy MLA Ministry of Legal Affairs MOLSMED Ministry of Labour and Small and Micro Enterprise Development (“the Ministry”) MoT Ministry of Tourism MPSD Ministry of Planning and Sustainable Development MWI Ministry of Works and Infrastructure NEDCO National Entrepreneurship Development Company T&TEC Trinidad and Tobago Electricity Commission TTBS Trinidad and Tobago Bureau of Standards 6 Glossary of Terms Carbon footprint The quantifiable measure of carbon dioxide emitted from a particular activity by using non-renewable fossil fuels Cradle to grave design Designing goods with a view to their reuse post their initial intended use. (See upcycling, emotional selling) Decent Work The standards prescribed by the International Labour Organisation for work that is productive and delivers a fair income, offers workplace security and social protection for family life. Additionally, it describes work that facilitates social integration and the expression of workers’ concerns and allows for workers’ consideration in the decisions that affect them. It must also provide equal opportunity and treatment to men and women. Economic Greening The process of moving towards activities whose net effect upon the environment and non-renewable resources is not negative, while conforming to Decent Work standards. Emotional selling A marketing strategy by which an emotional or emotionally motivated social value is attached to goods and service. For the purpose of this document the emotional value will be related to environmental realities. (See cradle to grave design and upcycling) Fair Trade A social movement usually applied to agricultural production and artisanal work that seeks to involve primary producers in collective decision making, wide range of value-creating activities and price-setting such that a larger part of the final price goes to primary producers to meets their common needs. Green The description of activities whose net effect upon the environment and nonrenewable resources is zero or positive. Green Economy The United Nations Environment Programme defines the green economy as “one that 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.” Life Cycle Analysis A system of thinking that takes into account the costs of production and consumption activities over the life of a product or service so that it considers all the impacts (environmental, economic and social) that said product or service will have over its entire life cycle, i.e. from pre-implementation to obsolescence. Sustainable The condition of business or business processes such that they respect the environment. It is to be differentiated from “Sustainable Business” which relates to the ability of a business to meet financial objectives over time. Upcycling The process of converting used products into new product or products of a higher quality (See cradle to grave design and emotional selling) 7 1. BACKGROUND 1.1 Introduction Although Trinidad and Tobago has amongst the highest GDP per capita incomes in the Latin American and Caribbean region, growth is heavily determined by the energy sector (non-renewable fossil fuels – such as petroleum and natural gas) which contributes 45.3 per cent1 of GDP and employs no more than 3 per cent of the labour force2. Heavy dependence upon the non-renewable energy sector has had a significant environmental impact: the 2012 Environmental Performance Index (EPI) 3 shows that Trinidad and Tobago’s is a weak performer in terms of attention to the environment and sustainability. The index takes into account the categories of environmental disease, water, air pollution (effects on human and ecosystem), water resources, biodiversity, forestry, fisheries, agriculture and climate change. The Government of the Republic of Trinidad and Tobago (GORTT) is committed to diversifying the economy beyond energy sector dependence in an environmentally sustainable manner. 4 This transition is consistent with international trends whereby many countries are incorporating green business into their national development policies. The value of the green economy in Trinidad and Tobago has traditionally been understated. It represents a largely uncovered realm of labour and economic activity. It holds enormous potential as it is a ready source of sustainable employment, entrepreneurship and labour transformation in Trinidad and Tobago. “Green economy” for the purpose of this policy focuses upon waste management activities, eco- and agro-tourism, agriculture, energy, construction, creative industries and innovation. It therefore involves a wide range of governmental and nongovernmental, private sector agencies. The key government agencies include: Government Ministry Ministry of Planning and Sustainable Development Ministry of Environment and Water Resources Ministry of Tertiary Education and Skills training; Ministry of Education Ministry of Trade, Industry and Investment; Ministry of the Arts and Multiculturalism Ministry of Food Production Ministry of Tourism Ministry of Works and Infrastructure; Ministry of Transport Ministry of Housing Ministry of Energy and Energy Affairs Ministry of Local Government Area Cross-cutting: overarching policy and direction Cross-cutting: environmental priorities Cross-cutting: human capital, skill sets and innovation All industries including the creative industries Agriculture and Agro-Tourism Tourism and cultural assets Construction Construction Energy and construction Waste Management For an overview of institutional landscape for greening in Trinidad and Tobago, see Appendix I. A Green Policy for Micro and Small Enterprises will impact upon the MSEs, improve their ability to generate decent employment and effect social change. At the enterprise level, the policy aims to create viable green businesses which are relevant to the sustainable development and environmental priorities of Trinidad and Tobago and to provide financial support to such businesses. At the level of labour and employment the policy aims to re-train and 1 Statistics based upon the Annual Economic Survey (2011), Central Bank of Trinidad and Tobago The energy sector employs approximately 20,500 workers. 3 Yale University Environmental Performance Index: http://epi.yale.edu/. The EPI absolute score worsened to 47.0 compared to 54.2 at the last index evaluation. Trinidad and Tobago ranks among the weaker performers. 4 The Medium Term Policy Framework, see Fourth principle of the Government’s social and economic transformation strategy. 2 8 equip under-employed human resources to function within the green economy. These changes are expected to lead to greater social inclusion based upon green activities. 1.1.1 The work of MOLSMED in the Green Economy MOLSMED has the mandate for micro and small enterprise development and, given that most entrepreneurs begin as a micro and small enterprise, MOLSMED is an integral institution to the process of the “green” transition. Additionally, the development of any new economic sector must be pursued in harmony with the national commitment to the Decent Work Agenda, espoused by the International Labour Organisation (ILO). The work of the MOLSMED in green enterprise development will impact upon all micro and small enterprises. However, it is possible to classify the groups of MSEs in the following manner: 1. 2. All MSEs whose core activity is not economic “green” but which depend upon natural resources for producing goods and services MSEs whose core business is economic greening, that is a. Consultancies and technical support in environmental services and training in environmental sustainability b. Community-based enterprises involved in management of ecosystems and resource conservation, including waste management c. Any enterprise involved in certification of MSEs as green and environmentally sustainable d. Innovators and inventors whose output improves environmental sustainability While encouraging greening of all enterprises under its influence, special support should be given to MSEs that contribute towards economic greening, giving emphasis to those operating in sectors of strategic importance to economic diversification. MOLSMED will use its programmes to support greening. Details are presented in Appendix II: MOLSMED Programmes for MSE Development. Several changes required to support greening lie under the purview of other ministries. For this reason, MOLSMED proposes to lead the initiative to formulate new measures, legislation, rules and fiscal policy that will impact favourably on MSE involvement in greening. The primary partnerships are with MEWR and MPSD. The deployment of the policy, legislative review and the social transformation will require partnership with an even wider range of Government ministries. In addition to the two above, this partnership will include Ministry of Trade, Industry and Investment, the Ministry of Energy and Energy Affairs, the Ministry of Food Production, the Ministry of Local Government, the Ministry of Tertiary Education and Skills Training, the Ministry of Tobago Development, the Ministry of Tourism, the Ministry of Works and Infrastructure and the Ministry of Housing. 1.2 Methodology Assistance from the European Delegation was used to identify and contract a Policy Consultant to work with the Enterprise Development Division for producing the following: a. b. c. d. Situation Analysis: a review of the state of existing policy, fiscal directives and legislation in the area of greenness and sustainability especially as relevant to private sector MSEs. An analysis of opportunities for green and sustainable businesses in Trinidad and Tobago A draft Green MSE policy with the identification of key programmes Implementation plan for the green policy 9 e. Communications Plan From the aforementioned, the MOLSMED produced its own draft policy which was subjected to review by various Ministry and private sector stakeholders before being revised and completed as presented here as finalised. 1.3 Objectives and Use The Green Policy for Micro and Small Enterprises is intended for use as a guide for deciding the priority areas for MSE activity in economic greening and to determine how resources can be mobilised to support this important initiative. 1.4 Context: Policy, Legislation and Fiscal Prior to the present Policy, there were no policies specifically created for fostering enterprise development in a green economy in Trinidad and Tobago. However, two policy documents may be considered the cornerstones of Government’s overarching approach to greening and environmental sustainability: the Medium Term Policy Framework (MTPF) and the Green Government Policy (GGP). The MTPF attempts to chart a course for all aspects of sustainability for Trinidad and Tobago including environmental concerns. The environmental component is fleshed out in Working for Sustainable Development in Trinidad and Tobago (June, 2012) – henceforth called the “Sustainable Development Policy,” (SDP)5. The GGP (2011) serves as a mandate for all Ministries in the Republic of Trinidad and Tobago to “go green”. It focuses primarily upon Government waste management activities, the use of alternative goods and services for reducing environmental degradation and touches upon transportation and procurement and the role of mass communications. Section 1.4.1 overviews environment management under both the MTPF and SDP while Section 1.4.2 outlines other policies that have environmental implications. 1.4.1 Environmental Management under the MTPF-SDP There are four (4) key areas assessed for environmental management under the MTPF. These are climate change, sea level issues (salinisation of coastal land and water, erosion and pests), natural and anthropogenic hazards and waste management (including bio-waste for energy production). The SDP zeroes in on the resources to be used to achieve environmental sustainability (See Appendix II: Resources to be Used for Environmental Sustainability). Within the policies, two (2) areas speak directly to business development: renewable energy and eco-tourism. Indications are that a large number of companies engaged in renewable energy are MSEs involved in support activities such as assessment and evaluation, installation and maintenance. Likewise, the vast majority of tourismrelated activity involves MSEs. Details of the policy plans for the areas of renewable energy and tourism see (Box 1: Business Development in Environmental Management). 5 The green economy is given specific focus in the section “Towards a Green Economy”, overviewed on pages 15 to 17 and elaborated throughout the rest of the document. It is aligned to the two (2) themes of the Rio +20 Conference, the green economy and the institutional framework for sustainable development. 10 Box 1: Business Development in Environmental Management. Renewable Energy Regarding renewable energy, the policy identifies solar, wind and waste energy as crucial areas for investment. Fiscal incentives for research and development for renewable energy, energy efficiency, alternative energy, devices and programmes are mentioned, but not fully developed. Key to this is the establishment of energy service company (ESCO) certification. Renewable energy and energy efficiency are treated separately. The Framework for Development of a Renewable Energy Policy for Trinidad and Tobago (2011) identifies and proposes methods of introducing renewable energy into the local energy mix. According to this policy, five percent (5%) of domestic energy should be from renewable sources by the year 2020. The main renewable energy proposals centre on wind and solar energy for industrial, residential and transport use. The policy makes special mention of introducing renewable energy practices to specific sectors including the hospitality industry via the use of solar heaters. Eco-tourism Under eco-tourism the MTPF highlights nature trails, wetlands, other environmentally sensitive areas and the use of information technology. The Ministry of Tourism (MoT), through the TDC also manages the Small Tourism Enterprise Project (STEP) which develops the technical skills of micro and small enterprises (MSEs) in accommodation. Another relevant programme is the Trinidad and Tobago Tourism Industry Certification Programme carried out in conjunction with the Trinidad and Tobago Bureau of Standards, intended to improve standards across the sector. MoT is also currently rolling out Green Globe 21 standards, an international standard for greenness. 1.4.2 Environmental Policies Trinidad and Tobago has produced a number of policies related to environmental sustainability. These may be grouped as follows: 1) Climate change, 2) Ecosystems and Wildlife, 3) Resource Management, 4) Culturoenvironmental assets, eco- and agro-tourism, and 5) Waste Management. (See Appendix III, Table 1: Overview of Environmental Policies.) These policies include the National Climate Change Policy (2011), National Environmental Policy (2006; edited in 2009), National Biodiversity Strategy and Action Plan (2001), National Forestry Policy (2011), National Tourism Policy (2010), the National Protected Areas Policy (2011), Integrated Water Resources Management (2005), and Sustainable Development Policy (2012), to name the most relevant ones. The National Spatial Development Strategy (2012), An Integrated Solid Waste/Resource Management Policy for Trinidad and Tobago (2012), Renewable Energy Policy (2011), Wildlife Policy (2013) remain in draft form. A comprehensive list of policies and their related fiscal measures and laws is presented on Appendix III, Table 2) Policies and Related Laws6. While none of the policies refers explicitly to the role of MSEs, whether incumbent or potential, some reference to the MSE sector is made in the tourism facet of the Sustainable Development Policy (2012) and the Integrated Water Management Policy (2005). 1.4.3 Areas of Greening Support There are several institutions involved in the process of greening Trinidad and Tobago. They can be grouped as follows: 1. 2. 3. 4. 6 Policy development and legal review Awareness and sensitisation Training in “greenness” Technical support and consultancy The Beverage Container Bill, aimed at making enterprises responsible for the bottles that they sell, is yet to be passed. 11 5. 6. 7. Financing Environmental oversight Implementation These are detailed on Appendix IV: Institutional Environment. None of these groups represents institutions directly involved in the development of businesses or MSEs in the green sector. However, these agencies can use some of their existing services to support MSE development in the green sector. These include support in the areas of technical support and consultancy, financing, environmental oversight, general business development and agri-business. These agencies are shown in Appendix V: Business Development Agencies. 1.4.4 Legislative Environment The environmental laws applicable in Trinidad and Tobago are listed on Appendix VI: Key Environmental Legislation. They apply to the areas of biodiversity and ecosystems, water quality, environmental management, air quality and noise pollution, forests, climate change, land management and space, renewable energy solid waste and tourism. None of these laws address enterprise development (nor MSEs in particular) involved in environmental and green sector. 1.4.5 Fiscal Measures At present there are limited measures in place to directly support green enterprises in Trinidad and Tobago whose core activity is greening. Nevertheless, there is the Green Levy of 0.1% on all companies’ gross sales which is used for creating the Green Fund (currently at TT$3 billion), a fund used for enabling grants to community groups and organisations primarily engaged in activities related to the remediation, reforestation and conservation of environment; and for incidental work conducive to the attainment of aforementioned work. Since establishment of the Fund in 2001, approximately 13 organisations have received funding which has totalled no more than 5% of the value of the Fund. The Fund is not available to the profit oriented private sector involved in similar work. Apart from the Green Fund, there are tax concessions for encouraging the use of energy efficiency (not for supporting green enterprise development per se). These incentives are outlined on Appendix VII: Fiscal Incentives for Greening in Trinidad and Tobago. These have not had the desired effect because the incentive does not offset the subsidy on non-renewable energy. Financing Facilities for Green Business In addition to the aforementioned measures, there are several funds which exist for funding activities in economic greening, environmental management and sustainability. In addition to these specific funds, there are multipurpose funds, which, though not specific to green enterprises, also represent a source of funding for such enterprises. Sources of Finance for Green Enterprises Environmental Funds The Green Fund Ministry: MEWR Currently valued at TT$3 billion; funded by the taxes 12 Environmental Trust Fund Usage: Disbursements made to non-profit community groups and organisations (NPOs/NGOs/CBOs) engaged in environmental remediation, reforestation or conservation. Restrictions: Private sector companies are not eligible for grants from the fund. Grants may be disbursed smoothly within 3 months after applying; nevertheless, many applicants find the application process lengthy and complicated. Ministry: MEWR, managed by EMA Allocations to the Fund arise from annual appropriations from the Government of the Republic of Trinidad and Tobago, EMA permit application fees and fees for services rendered and international grant funding and loan funds. Usage: a. Incentive measures for reducing environmental pollution. b. Demonstration projects of innovative technologies toward the reduction of pollution. c. Emergency Response Activities including remediation of degraded sites. d. Public awareness and education programmes in environmental protection and natural resource management issues. Multi-Purpose Funds Community Development Fund Ministry of Community Development Ideas to Innovation (i2i) Competition Ministry of Planning and Sustainable Development Micro Loan Facility Ministry of the People and Social Development Research Development Facility Ministry of Trade, Industry and Investment See Appendix VIII: Multi-Purpose Funds in Trinidad and Tobago. There are also plans to establish an Enterprise Investment Fund (EIF), managed by the MOLSMED. The EIF will be a project-based funding mechanism that aims to support MSEs through public-private partnerships with non-MSE intermediaries. The Fund’s eligible projects include those that provide business development services (training) and technology services (ICT upgrade) to the MSEs, among others. 13 2. PRIORITY SECTORS FOR GREEN MSE DEVELOPMENT The following sectors have been identified as key areas for the development of MSEs in the green economy: 1. 2. 3. 4. 5. 6. Waste management Construction Tourism Creative industries and fashion Energy Agriculture 2.1 Greening Waste Management At present Trinidad and Tobago has notable challenges in the area of waste management. See Box 1: Facts on Waste Generation in Trinidad and Tobago. The chief challenges of MSE involvement in the sector are: i. Inadequate funding for waste management activities and in low compensation for activities along the value chain Undeveloped value chain waste collection industry Lack of knowledge in how to deal with different kinds of waste. The absence of relevant health and safety standards within the waste collection activity ii. iii. iv. Box 1: Facts on Waste Generation in Trinidad and Tobago7 50 million plastic bottles per month 1 million glass bottles per month Each person accounts for 2.2 kg of waste per day 95 % of all domestic waste ends in landfills in Trinidad. 8 The landfills are already past full capacity and should have been terminated in the 1980s According to SWMCOL the life of a landfill is 20 years, while most landfills in Trinidad and Tobago have been in operation since the 1960s It is estimated that up to 40% of waste in Tobago is recyclable. 9 Two-thirds of all waste is from households. Up to 80 % of all household waste is recyclable. There is no official system for managing hazardous waste. These include batteries, fluorescent lights, needles, cell phones, radios, computers and televisions. Community-Based Environmental Protection and Enhancement Programme (Trinidad and Tobago) Company Limited (CEPEP) 7 Attempts have been made to establish a waste management system through the CEPEP (established in Taken from Trinidad Express (April 5, 2012) NGO Fishermen and Friends of the Sea www.ffostt.com. The landfills are located along the Beetham Highway near Port of Spain, Forres Park in southern Trinidad and Guanapo, obtained from Minister S. Rambachan, Minister of Local Government. An additional landfill in Guapo, Point Fortin, is managed by the Point Fortin Borough Council through a sub-contracting agreement. There is one landfill located at Studley Park, Tobago. 9 Akili, K., Eco Industrial Development Company, Tobago (E-IDCOT) 8 14 2007 and currently managed by the MEWR). CEPEP employs between 7 and 10 thousand low-skilled workers. There has been the intention to train employees in various areas including agriculture. Roadside workers earn up to $200 per day while contractors may earn up to $10,000 per month. 2.2 Greening the Construction Industry Greening of the construction sector encompasses a wide range of activities. Each is geared towards some aspect of resource efficiency, waste reduction from the building, respect for ecosystems surrounding the site of construction and health and safety of human occupants. These translate into four (4) classes of business activity: 1. 2. 3. 4. Planning, site selection and building design The assessment of biological and other impacts Audit and assessment of resource usage (e.g. water, energy, air and materials) The disposal and management of building waste, that is, threefold waste generation a. Waste arising from the construction activity b. Waste generated during the life of the building c. Disposal of the building itself as waste material post usage The main challenges of MSEs in the green construction industry are: 1. a. b. The general lack of awareness of green construction by both the MSEs and the wider public and a consequent lack of interest in standards, standardisation and certification 2. The cost of individual certification is often considered formidable for: Individuals seeking green certification and MSEs in the construction sector that seek to build capacity for green construction, design, management and disposal 3. The wider public often does not respect the premium that green construction carries because of a failure to understand the lifecycle approach to products and services 4. A general lack of financial support for inventors and innovators in the area of green construction materials Box 2: Facts on Construction and MSEs in Trinidad and Tobago MSEs in Construction Between 1,000 and 1,800 12% of all MSEs No. MSEs of all construction 77% cos. (%) Construction Industry Estimated 5% Contribution to GDP Generally carried out in No environmentally sustainable manner Contribution to environmental Not yet quantified. However, when not carried out sustainably, construction degradation represents both a significant contribution to waste and a massive depletion of the quantity and quality of natural resources including land, water and ecosystems. 15 Standards Standards exist. They include ISO 14000: Environmental Management Leadership in Energy and Environmental Design (LEED) certification EMAS standard originating in the European Union 2.3 Greening the Tourism Industry Tourism represents a nexus for a wide range of economic activities. These are illustrated on Chart 2: Green Activities in the Tourism Industry. At present the Ministry of Tourism recognises the Green Globe 21 certification for lodging in the tourism sector. MOLSMED will begin with enterprises registered with the Small Tourism Enterprise Project (STEP), TDC, of the Ministry of Tourism. STEP applies to lodging up to 75 rooms, tour guides and tour operators and taxi operators. Figure 1: Green Activities in the Tourism Industry Improved Waste Management Energy Efficiency + Renewable Energy Organic Agriculture and Agro Tourism Sustainable Building and Construction Sustainable Transport Sustainable Tourism Sustainable Creative Industries The main challenges to going green in the tourism can be outlined as follows: 1. 2. 3. 4. The absence of training support for new and existing businesses in the tourism sector towards going green The absence of certification and standardisation of green products and services within the tourism industry The cost of acquiring certification for green products and services within the tourism industry The absence of customer awareness regarding the value of green products and services within the tourism industry 16 Box 3: Facts on Tourism and MSEs in Trinidad and Tobago Contribution to GDP Approximately $6 billion or around 3% of GDP. Contribution to Labour (direct) An estimated 31,500 jobs or 5.2% of total employment. Contribution to Labour $12 million or 7% of GDP (indirect) 9% of the labour force. MSE Involvement Tourism includes: Distribution of tourist-related goods and services Personal services Transportation, communication and storage MSEs in tourism sector No accurate data. Estimates: 10 Distribution of tourist-related goods and services: 64.2% Personal services: 71.2% Transportation, communication and storage: 51.6%. Impact of Tourism Upon the Significant: If left unchecked, tourism can lead to lasting environmental and Environment natural resource degradation. For instance, air, road and rail transport are continuously increasing in response to the rising number of tourists, producing excessive CO2 emissions and air pollution. Tourism has also been linked to disruption of ecosystems. Standards Several standards exist for greening in the tourism industry. Global Sustainable Tourism Council and its Americas branch office, the Sustainable Tourism Network of the American recognises several regional and regionally recognised standards. These include: United States-based Green Globe 21 (already adopted in Trinidad and Tobago by Ministry of Tourism) Blue Flag for beaches designation of the Foundation for Environmental Education 2.4 Greening the Creative Industries and Fashion The creative industries in Trinidad and Tobago refer to a wide range of activities that use creative talent in the areas of the performing, visual arts and fashion and artisanal work. See Chart 3: The Creative Industries. In this Policy, greening of the creative industries refers primarily to reducing the carbon footprint of the sector. It has been established that creative industries have enormous potential for alleviating poverty and addressing social needs precisely because of the high level of involvement by micro and small enterprises, especially in developing countries. Creative industries have also been targeted by state for diversifying the domestic economy. Trinidad and Tobago has a well-established heritage; with a vibrant community of artists and practitioners operating across a multitude of fields. In 2012, the majority of businesses operating within these sectors are MSEs11 operating in the creative sector are informal companies 12 or employ informal labour. See Box 4: Facts on the Creative Industries in Trinidad and Tobago. There are many opportunities for greening of the creative industries. These include 10 Central Statistical Office survey of businesses and Creative Industries (Building Competitive Advantage: Six Strategic Business Clusters and Enablers, 2012) 12 Of the twenty-five (25) businesses that participated in the survey, at least seventeen (17) are likely to be classed as MSEs. Eight (8) of these companies also indicated that they were operating individual proprietorships. 11 Culture 17 Identification of suitable areas for special creative activities that need space for “upcycling” and “cradle to cradle” activities. Suitable locations should take into account geological factors, risk of contaminating water, capacity and the proximity to other man-made facilities and amenities. Reuse of waste for transformation into artistic commercialisable forms Sustainable waste disposal related to cultural and/or creative activities Use of indigenous, natural and sustainable materials to create commercialisable alternatives to nonsustainable ones where the end product is deemed artistic or creative output Development and review of accepted or acceptable health and safety standards (H&S) for workers within involved in creative sector work Training or retraining of MSEs in any of the aforementioned activities Figure 2: Creative Industries Carnival Broadcasting Fashion Literature Dance, Theatre and Visual Arts Music Film The main challenges for greening the creative industries include: 1. 2. 3. 4. 5. A general lack of awareness of the potential for environmental sustainability in creative industry work The general lack of green innovation and invention in the creative industries A lack on incentives (incentives and disincentives) for reuse of specific elements of creative waste, e.g. carnival costumes, Hosay waste tajas and cultural artefacts such as candles and propitiation items related to religious festivals Lack of health standards for workers in creative industry work Lack of green standards for site selection for creative industry activities 18 Box 4: Facts on Creative Industries in Trinidad and Tobago Contribution to GDP At least 5% to GDP.13 MSEs Unknown, estimated to be high Employment Estimated to employ 10,854 people14 (number is highly underestimated) Measuring contribution by copyrights alone, 4.8% employment (direct) 15 Trend Value of creative goods rose from $15.6m in 2004 to $17m in 2008, constituting a growth rate of 9%16. Standards and There are no broad international or regional standards for creative industries. Certification There are, however, fair trade labels. The principles of the fair-trade movement are provided in Box 4.1. Box 4.1: Fair Trade Principles Creating opportunities Inclusion of individuals of traditionally marginalised and/or disadvantaged producers for peripheral producers for uncovering opportunities and for self-governance and democractic decisionmaking. Transparency and Transparent management of workers so that they have a voice in commercial accountability relationships, including pricing. Capacity building Fairtrade mean working with producers to develop their independence, management skill development and their access to new markets Fair pricing Fairtrade emphasises social dialogue for fair pricing so that both producers benefit from a price that they deem adequate. Fair Traders works to ensure prompt payment for goods and services and the pooling of resources to give producers access to finance, especially in down-time (out-of-season). It lends itself to the cooperative model. Gender equity Fairtrade means that men and women are treated with equity and empowered where necessary. Working conditions Fairtrade means that work conditions are safe and healthy and conform to relevant UN Conventions in the local and international context. The environment Fairtrade activities try to be environmentally sustainable and carried out in a sustainable manner. 2.5 Greening the Energy Sector The main challenges facing MSEs in green business in the energy sector are: 13 WIPO Studies on Economic Contribution of the copyright Industries (2012), World Intellectual Property Organisation (WIPO) Creative Industries Sector Survey, Trinidad, (January 2012) National Training Agency 15 WIPO Studies on Economic Contribution of the copyright Industries (2012), World Intellectual Property Organisation (WIPO 16 Culture and Creative Industries (Building Competitive Advantage: Six Strategic Business Clusters and Enablers, 2012) 14 19 1. 2. 3. 4. The subsidised cost of energy for Trinidad and Tobago discourages the investment in renewable energy and energy efficient practices. A general lack of public awareness and information regarding renewable energy, energy efficiency and access to related goods and services A general lack of information on energy efficiency and renewable energy within MSEs, especially where cost savings are concerned Lack of training in renewable energy and energy efficiency, the absence of standards, standardisation and training for attainment of certification and the formidable cost of certification for MSEs Box 5: Facts on Energy Sector and MSEs in Trinidad and Tobago MSEs in Energy Sector 56.2% of petroleum companies17. Renewable Energy Cos. 0.0%-0.05%18 Currently, the few companies involved in renewable in Trinidad and Tobago are micro and small enterprises19 Contribution Non-Renewable 45.3% to GDP Trinidad and Tobago Trinidad and Tobago is a serious perpetrator regarding GHG emissions. In 2009, International Ranking TT ranked 54th in global GHG emissions and 2nd in both GHG emissions per capita and per unit of GDP20. This data implies that TT represents an important player in reducing global GHG emissions, and by extension cutting climate change and its disastrous effects. Standards ISO 50001:2011 (Energy Management System) for energy companies. The ISO 50001 may be used for better use of energy and setting energy targets and the development of an energy policy. ISO 9001 (for quality management) ISO 1400 (for environmental management). Since 2007, the USA introduced a renewable fuel standard (RFS2), implemented in 2010. Its major tenets relate to: 1. Usage of renewable fuels over a horizon through to 2022. 2. Classifying renewable fuels into four (4) separate categories: —total renewable fuels, advanced biofuels, biomass-based diesel, and cellulosic biofuels—each with its special volume requirement and standard. 3. Qualifying biofuels according to minimum thresholds of lifecycle greenhouse gas emission. 4. Renewable fuels which are made from “feedstocks that meet a revised definition of renewable biomass, including certain land use restrictions.”21 These rules relate to the United State only. No standards for renewable fuels exist in Trinidad and Tobago. 17 Computed from CSO (Central Statistical Office) data: No. of employees in various sectors, 2011. BP Statistical Review of World Energy, June 2013 19 Information gathered from meetings with private renewable energy companies in Trinidad and Tobago 20 Statistics obtained from Dr. Donnie Boodilal’s (UTT) research on GHG emissions in Trinidad and Tobago. 21 Renewable Fuel Standard (RFS), Schnepf and Yacobucci (March 14, 2013). Congressional Research Service 18 20 2.6 Greening Agriculture and Agro-Processing The “greening” of agriculture refers to organic farming and other organic food production techniques. Organic farming is considered green because its farming techniques do not use pesticides, herbicides or other artificial substances. The farming process is fully natural, which preserves soil and water quality. While the nutritional benefits of organically grown food over non-organically produced foods have not been clearly established, the everyday consumer believes that organic produce is healthier. Regarding fishing, greening and sustainability refer to restricting the use of artificial chemicals and hormones in man-made fisheries, harvesting of healthy fish from open waters and avoidance of overfishing. The market for organic produce is one of the fastest growing segments of agriculture in the world today. PRINCIPLES OF ORGANIC FARMING22 Crop rotation to support the efficient use of on-site resources Very strict limits on the use of: Synthetic chemical pesticides and fertilisers Antibiotics for livestock and Other food additives, processing aids and other inputs The absolute prohibition on using genetically modified organisms The use of on-site resources, such as livestock manure for fertiliser or feed produced on the farm The use of plant and animal species that are resistant to disease and adapted to local conditions Free-range livestock and poultry with open-air systems and organic animal feed The main obstacles to “greening” the domestic agricultural sector are: 1. 2. 3. 4. 5. The lack of awareness regarding the benefits of organic farming and agro processing A lack of technical skill and the availability of training in organic food production and processing A lack of development of export markets for domestically grown organic produce A lack of financial resources available to micro and small landholders and farmers A failure to operate at international standards While there is some indication that the market for organic food in Trinidad and Tobago is increasing, the subsector is not controlled, that is, there are no established organic markets or recognised certified, green enterprises. Box 6: Facts on Agriculture and MSEs in Trinidad and Tobago Contribution to GDP 1 % to GDP Contribution to 22,000 workers23 Employment MSEs Sector primarily comprised primarily of MSEs which tend to be farmers working small landholdings Importance to Economy Despite small contribution agriculture is strategic sectors. For the purpose of food sovereignty, the Ministry of Food Production has identified legumes and vegetables,24 rabbits, sheep and goats, minor fruits 25 and roots and other crops.26 22 Source: European Commission on Agriculture and Rural Development http://ec.europa.eu/agriculture/organic/organic-farming/whatorganic_en 23 Central Statistical Office, data as at 2010. 21 Objectives of Ministry of Food Production Organic Farming 24 These i. Boost both the quality and quantity of output ii. Organise the sector to improve entrepreneurship and innovation iii. Improve financial viability in domestic and international markets In May, MEWR and the Ministry of Food Production established an organic fruit and vegetable farm on 400 hectares of land in Couva legumes and vegetable category included pigeon peas (cajanus cajun), bodi (vigna unguiculata), black eye peas (phaseolus vulgaris), seim (lablab niger), pumpkin (cucurbita moschata), dasheen bush, ochro, tomata, sweet corn (zea mays), sweet peper, hot pepper, cucumber (cucurmis salivas), pak choi (brassica chinensis), melongene and lettuce. 25 The minor fruits are avocado, sucrier bananas, citrus, coconuts, bananas, pommcythere, mango, pawpaw, pineapple, watermelon and minor fruits 26 Roots and other crops include cassava, sweet potatoes, dasheen, eddoes, plantain, breadfruit and rice. 22 3. GREEN ENTERPRISE DEVELOPMENT POLICY FOR MICRO AND SMALL ENTERPRISES AND COOPERATIVES 3.1 Goal and Objectives 3.1.1 Goal To create an active, viable green enterprise sector for micro and small enterprises that strengthen economic diversification in Trinidad and Tobago. 3.1.2 Objectives The policy’s key objectives are as follows: a. b. c. d. To encourage new micro and small enterprises to participate in the green economy. To support micro and small enterprises whose core activity is economic greening. To provide a support system for transitioning micro and small enterprise sector to the green economy. To encourage various Government Ministries, Department and Agencies to create opportunities green enterprise development. e. To facilitate the greening of micro and small enterprises using recognised international standards. f. To create a system of green certification. 3.2 Key Principles The following principles guide the current policy and all subsequent actions that extend from it. a. Alliances Alliances with stakeholder partners from the public, private and nonGovernmental organisation (NGO) sectors will be encouraged to advance green MSEs. This will include both private service provider coordination and cooperation for common objectives between ministries. b. Equality and Equity Absence of discrimination as is consistent with the Decent Work Agenda and the use of mainstreaming techniques to recognise and reduce/eliminate disparities affecting vulnerable groups and gender disparities. c. The recognition that structures must be established for the accurate and relevant dissemination of information to all active stakeholders on both on the environment and resource usage and micro and small businesses involved in the sector. Information Availability d. Innovation e. Social concerns The Green Enterprise and Entrepreneurship Policy will embrace a greater number of higher value-generating and innovative businesses. Innovation in this context is not limited to science and technology, but also extends to the creation and/or improvement of a new product, service, business process or system that will support sustainable social benefits and/or economic returns. Integration of the MSE sector into the socioeconomic fabric of Trinidad and Tobago so that entrepreneurship can be seen as a viable and credible avenue 23 of employment and wealth creation. f. Sustainability The initiatives included in the policy emphasise value creation, thus increasing the capability and competitiveness of MSEs and their support agencies, resulting in support for their long term viability and less dependence on Government involvement. 3.3 Policy Outcomes Greening will be accomplished via the provision of: 1. 2. 3. 4. 5. 6. 3.3.1 Establishment of green enterprise network Technical support and information system Assistance to MSEs in meeting standards Green Certification Incentives for green innovation Adequate financing mechanisms Establishment of Green Enterprise Network The Ministry will work through its programmes and business development services to establish a network of green enterprise partners, including the International Labour Organization, United Nations Environmental Programme, other Ministries and social partners. 3.3.2 Technical support and information System The Ministry will increase the capacity of its direct and indirect business development services (IBIS, FairShare and NEDCO) to support the greening of MSEs. Where necessary, relationships will be established with specialised local and international agencies to support technical capacity and information dissemination. Additionally, capacity will be strengthened for recognising viable green enterprises and business ideas. 3.3.3 Assistance to MSEs in meeting standards and certification The Ministry will seek to provide information on recognised green standards for priority areas. The training provided will integrate assistance in meeting standards using international best practice. 3.3.4 Green Certification Ministry will collaborate with MEWR and other relevant agencies to establish a Green Certification system that identifies the level or stage of greening at which a business operates, taking into account its inputs, processing and output. 3.3.5 Incentives for Green Innovation Greening often entails process of product innovation. This includes the use of biodegradable materials, the alternative materials and/or the creative of new materials. MOLSMED through its direct and indirect business development services will therefore assist MSEs in green innovation by: (i) (ii) Supporting local inventors and innovators to commercialise innovative green technologies Supplying adequate information on intellectual property protection for new green innovation 24 (iii) 3.3.6 Providing assistance for prototyping and standardisation of commercialisable, new green products and services Adequate financing mechanisms MOLSMED will use its programmes and business development services that provide funding to recognise green and sustainable MSEs and to prefer them over those which operate unsustainably. Also, it will seek preferential arrangements with funds managed by other ministries and implementing agencies, including the Research and Development Fund (ExporTT Trinidad and Tobago Limited, MTII), the Innovation Fund (MPSD) and the Green Fund (the Green Fund, MEWR). In the case of NEDCO, the MOLSMED will establish a seed capital facility that will be used to invest in these projects using the appropriate type of financing instruments. 25 4. TOOLS FOR SUPPORTING GREEN MSES The MOLSMED will support MSEs in the green economy through: 1. 2. 3. 4. 5. Public information on greening and green jobs The provision of training in standards of green operations Certification for green enterprises and green products and services Green Procurement via the FairShare Programme Financing the Greening of MSEs 1.1 Public Information on Greening and Green Jobs The MOLSMED recognises that the demand for and supply of green entrepreneurship, green jobs and for enterprise greening is partly a function of the lack of relevant information on the sector, opportunities and its importance to Trinidad and Tobago. Therefore, MOLSMED commits to partnering with the relevant line Ministries to improve access to quality information on the greening, green opportunities and environmental management in Trinidad and Tobago. 1.2 Provision of Training in Standards for Green Business Operations The MOLSMED will use public-private partnerships to introduce green training to MSEs in Trinidad and Tobago. Similarly, it will seek to align with business development programmes offered by other ministries and the private sector that target MSEs so that the concept of greening can be introduced. The objective of such training will be the establishment of standards among green enterprises. Such standards will include health and safety standards and activities in waste management. 1.2.1 National Integrated Business Incubator System The IBIS will educate all its clients through generic workshops in green business methods. It will be proposed that special "Green" Business Incubators be established to encourage full greening of these businesses. IBIS will also partner with standard-setting organisations both in Trinidad and Tobago and internationally to identify and assist in the green certification of these enterprises. Additional funding will be proposed to support the establishment of these businesses to assist with full green certification as well as for assisting them with achieving viability. 1.2.2 FairShare Programme The FairShare Programme will use its training component to inculcate green technologies and mechanisms to its registered MSEs. These will apply to all business activities but will prioritise the areas listed in 4.2 above. 1.3 Certification and Labelling MOLSMED will promote certification on two levels throughout its programmes: 1. Company: 26 This is a holistic certification analysing company inputs (traceability) and international certification for company processes in efficiency of resource usage. Such standards include the European Eco-Management and Audit Scheme (EMAS) and the International Standards Organization (ISO) 14001. 2. Products Ecological labelling: Ecolabels are green labels on products, foods and medicines that are meant to facilitate easy consumer recognition of items that have met approved environmental standards. These are widely used in the European Union and North America. a. The use of ecological labels for products (non-edible and non-medicinal). Initial labels will address: i. Cleaning products ii. Appliances iii. Paper products iv. Home and garden products v. Clothing vi. Tourism related activities vii. Lubricants. b. Edible produce and medicines: international health and safety standards (Hazard Assessment and Critical Control Point (HACCP), ISO22000 the United States Food and Drug Administration (FDA) Food Safety Modernisation Act) and organic food standards as deployed by the International Federal of Organic Agricultural Movements (IFOAM) Where ecolabels do not exist, the MOLSMED will work with the relevant Ministries to develop Trinidad and Tobago Ecolabels for MSEs’ products and educate the public the importance of branding and eco-labels. 1.4 Green Procurement MOLMSED will give full support to the implementation of the Green Government Policy that encourages green procurement from all Government ministries and state board agencies. Green procurement means that all outsourced goods and services are mandatorily compliant with a certain minimum standard of “greenness”, in harmony with national sustainable development objectives. This practice should eventually be extended to stateboard agencies and the private sector. Additionally, MOLSMED will integrate the green procurement policy into the FairShare Programme. The Programme will be the primary source for Ministries seeking to source green MSEs. Also, the Programme will identify opportunities for companies that have green certification. 1.5 Financing Mechanisms a. b. The MOLSMED will assist the National Enterprise Development Company Ltd (NEDCO) in developing focal areas in green business development for financing, technical training and business development. The MOLSMED will explore international funding for green MSE activities in Trinidad and Tobago in conformity with its focal areas. As much as practicable, the MOLSMED will explore financing green MSE activities in the context of public private project-based partnerships where there is a special purpose vehicle. 27 5. DEVELOPMENT OF GREEN MSE SECTOR BY MOLSMED As indicated in the Situational Analysis, MOLSMED will focus on five (5) priority area where green MSE development can have the greatest and most effective impact, viz: a. b. c. d. e. Waste Management Construction Tourism Creative Industries Energy MOLSMED will seek out the expertise for training as well as funding for the development of these priority sectors with the goal of ensuring that they receive the optimal amount of support. 5.1 Waste Management The areas of support will be: i. ii. iii. Waste collection, sorting and transportation (national and international) Provisions of green waste disposal systems and sorting Waste repurposing and manufacturing for commercial use MOLSMED will actively promote waste collection work through several routes, such as collaboration with CEPEP. Figure 3: Activities targeted by MOLSMED for Supporting MSEs in Waste Collection Waste collection/ recovery Resale to end user and waste generation Sorting and cleaning Re-purposing (transforming to reusable product) Baling, transportation Processing (cleaning, compressing, transforming Actions of the MOLSMED to develop green MSEs in waste management 28 In order to create a climate for green enterprise development, the MOLSMED will provide the financial and technical support to MSEs to: 1. Encourage MSEs to expand its activities along the value chain in waste management to increase their profitability. Identify suitable locations for waste collection activities by MSEs by the creation of waste management incubation for MSEs and the development of cooperative structures to support waste management. Support training in waste collection activities and standards for MSEs involved in such activities. Champion the use of H&S standards for all enterprises involved in waste management activities. 2. 3. 4. 4.2 Construction The areas of support will be: i. ii. iii. iv. v. vi. Sustainable planning in site selection and building design. The assessment of biological and other impacts in the construction sector Audit and assessment of resource usage (e.g. water, energy, air and materials) The disposal and management of building waste, that is, threefold waste generation a. Waste arising from the construction activity b. Waste generated during the life of the building c. Disposal of the building itself as waste material post usage Providing training and/or international certification related to construction and procurement by encouraging the adoption of the following standards among all businesses within the domestic construction industry (EMAS, LEED and ISO 14000; and other standards recognised by CARIRI, the TTBS or Trinidad and Tobago legal authorities through the granting of intellectual property rights for new and innovative green technologies) The adoption of existing green technologies recognised by any other Trinidad and Tobago presiding authority. Actions of the MOLSMED to develop green MSEs in construction The MOLSMED will provide the technical and financial support to MSEs to: 1. 2. 3. 4. Encourage integration of recognised international certification to training and development programmes related to construction. Assist MSEs to access green standardisation and certification in green certification for construction companies such as EMAS, LEED and ISO 14000 or other certification that is considered internationally relevant and sound. Partner with the MEWR and the MWI to create an awareness of the life cycle approach to building, i.e. stimulate demand for green construction by highlighting its longterm cost and environmental benefits. Offer additional support for inventors and innovators in the areas of intellectual property rights for new and innovative green technologies, when such technologies are recognised as new and innovative by CARIRI, the TTBS or legal authorities qualified to recognise new marketable technologies both in Trinidad and Tobago and internationally 4.3 Tourism MOLSMED will recognise and support MSEs involved in sustainable tourism activities. These will be defined as: 29 1. 2. 3. 4. 5. Sustainable transport (both energy efficient and renewable energy based) Sustainable building and construction related to tourist facilities and lodging Waste management for tourism facilities or in areas designated for tourism Energy efficiency and renewable energy Organic agriculture in the context of agro tourism Actions of the MOLSMED to develop green MSEs in tourism The MOLSMED will provide the technical and financial support to MSEs to: 1. Target incubation and business development efforts to greening of specific tourism related activities which are in harmony with the TDC development goals. These are: a. Carnival, Tobago Heritage Festival and other national and/or regional cultural festivals b. Events related to local cuisine or cuisine in areas frequented by tourists (international tourists) c. Creative industries where it can be reasonably estimated that products and services are up to 50% destined for tourists and visitors (local and international) d. Tours to historical sites e. Natural attractions (especially beaches, rivers, forests and seas) f. Agro tourism with organic agriculture Encourage certification of “green” tourism activities. Special emphasis will be placed upon Green Globe 21 and other certification recognised by the Ministry of Tourism and the Tourism Development Company. Give financial support for certification in the following areas: a. Green construction of visitor lodging b. Energy efficiency in tourism facilities c. Sustainable disposal of waste from tourist facilities Partner with the Ministry of Tourism and the MEWR to promote customer and business awareness of the value of going green 2. 3. 4. 4.4 Creative industries The MOLSMED will support greening of the creative industries in Trinidad and Tobago by focusing upon MSEs that are characterised by: i. Creating indigenous products with Trinidad and Tobago branding a. The sustainable use of local and indigenous materials b. Distinguishing goods by Trinidad and Tobago manufacture, giving consideration to sustainable use (sourcing, production and/or rendering) of local content. c. Preference for local materials where the import burden and carbon footprint may be simultaneously reduced. ii. Encouraging the adoption of sustainable business practices a. “Upcycling” to increase the value of reused materials b. “Cradle to Cradle” design, which considers holistic sustainability throughout a product lifecycle, have enhanced the perception of environmental consciousness within the context of enterprise c. “Emotional Selling Propositions” (ESP) assist in educating the consumer about the respective brands 30 iii. 4.4.1 Providing information underscoring Fair Trade movement and ethical practices within creative industries geared towards export. Where applicable, the use of ‘fair trade’ practices in the industry and fair-trade labelling. For the purpose of Trinidad and Tobago, fair-trade labelling will be domestically oriented and will serve to assure customers that good and services are produced at ‘agreed upon’, ‘fair prices’ that serve to benefit small producers more directly. It may be linked to the cooperative movement and structure. Creative Industries with a tourism orientation MOLSMED will also support MSEs involved in capacity development and training for the tourism sector in the areas of: 27 1. 2. 3. 4. 5. Sustainable management Socioeconomic impacts Cultural impact of tourism Environmental impacts (including consumption of resources, reducing pollution, and conserving biodiversity and landscapes) Standard setting for international green standards or recognised local bodies. Actions of MOLSMED to develop green MSEs in the creative industries The MOLSMED will focus upon: 1. 2. 3. 4. Reuse of waste for transformation into artistic commercialisable forms Sustainable waste disposal related to cultural and/or creative activities Use of indigenous, natural and sustainable materials to create commercialisable alternatives to nonsustainable ones where the end product is deemed artistic or creative output Training or retraining of MSEs in any of following: a. Fashion b. Carnival and costumery c. Festivals and celebrations including religious festivals (as outlined by the Ministry of Tourism) and d. Visual arts Given the aforementioned, the MOLSMED commits to: 1. 2. 3. 4. 5. 27 Partner with the MTII and the Ministry of the Arts and Multiculturalism to create national awareness of green and sustainable practices within the creative industries Develop creative sector incubators for the areas targeted for greening. Partner with the Ministry of Finance and the Economy and the Ministry of the Environment for developing fiscal incentives for creative industry practices that are in harmony with greening of the industry Champion the creation of H&S standards within the creative industries; and to develop and support FairTrade relationships where necessary Identify suitable areas for special creative activities that need space for “upcycling” and “cradle to cradle” activities. Suitable locations should take into account geological factors, risk of contaminating. Numbers 1 to 4 come from the Global Sustainable Tourism Council 31 6. Work through business incubators and NEDCO to collaborate with: Academic institutions Registered associations and idea generation agencies with a track record of work with creative industries. 4.5 Energy and Transportation 4.5.1 Energy MOLSMED will support energy efficiency and the use of renewable energy in MSEs in Trinidad and Tobago. It will support the following energy-related activities: 1. 2. 3. Renewable energy generation Renewable energy awareness Renewable energy services (installation, maintenance and education related to renewable energy facilities and equipment) Special emphasis will be placed upon the aforementioned in the area of transport. 4.5.2 Transportation Additionally, MOLSMED will give special emphasis to MSEs involved in sustainable and energy efficient transport. MSEs in the private sector dominate the transport industry, such as taxis, private buses, chartered transport services for tours, in addition to transport via boat along inland watercourses particularly for tourism and inland fishing. MOLSMED will support private transport encompassing: Alternative fuels: ethanol, methanol, electricity, compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas, bio-diesel, hydrogen, or hybrid fuels. MSEs can function anywhere along the value chain from the production to distribution of these fuels. Alternate modes of transport, such as bicycles, rickshaws and the like, which can link to tourism-related Actions of MOLSMED to develop green MSEs in the energy and transportation sectors i. ii. iii. iv. Partner with the MEWR to support public awareness of the need for renewable energy and energy efficiency, in the wider society Partner with the MEWR to support public awareness of the need for renewable energy and energy efficiency within MSEs Support through incubation services: a. small enterprises involved in renewable energy production b. Alternative energy and/or non-fuel based transport systems c. Training in internationally recognised standards for energy efficiency and renewable energy Assist in financing the cost of acquiring international certification in energy management 4.6 Agriculture The MOLSMED will support MSEs involved in: 32 1. 2. 3. Organic farming (as defined by IFOAM) Agro tourism in organic farming Agro-processing using organic produce or other produce recognised to have been produced using certified sustainable practices There is some evidence that organic farms employ greater numbers of workers while their produce can sell up to 30% more than non-organic produce.28 Action of MOLSMED to develop green MSEs in agriculture The MOLSMED will: 1. 2. 3. 4. 6. Partner with the MEWR and MFP to sensitise the population to the environmental benefits of organic farming; Provide technical assistance to small and micro farmers and agro-processors through existing and new incubators facilities where clients are engaged in primary agriculture or agro-processing activities Collaborate with other ministries to promote opportunities in organic farming especially geared towards export markets Provide special financing through financial programmes to support micro and small commercial organic farming activities IMPLEMENTATION The implementation of the Policy is detailed in a separate Implementation Plan for Legislative Landscape, Fiscal and Funding Measure and Institutional Framework (July 2013). The current policy must operate within a broader national context. It must be supported by Government commitment, private sector training institutions, effective funding and an aligned legislative framework. (See diagram below.) 28 In the United States of America, food labelled as organic can cost up to 30 per cent more than non-organic foods and, in developed countries, organic farms tend to produce up to 20 % less than their non-organic counterpart farms. Statistics for the aforementioned are not yet available for Trinidad and Tobago. Datum taken from an investigative article by CBS news: http://www.cbsnews.com/2100-500194_162-2636253.html. An article from Institute of Food Technologists, Rutgers (2006), Winter and Davis, reports a premium between 10 and 40 %. “The Road to 2020: Towards Healthy, Humane and Sustainable Food, Farming and Land Use”, Soil Association (2012) United Kingdom. http://www.cbsnews.com/2100-500194_162-2636253.html 33 Figure 4: Model of Sustained National Greening Government commitment Effective fiscal and private funding mechanisms Green and sustainable enterprise sector in Trinidad and Tobago Facilitative education and training institutions Strong and enforced laws To develop this sort of ecosystem, the Policy depends upon three (3) levels of support: (i) (ii) (iii) Level 1: A decision from Government at the highest level to give force to: a. Green procurement across all ministries b. Green building processes. Level 2: The MOLSMED and all activities that fall within its direct purview: a. IBIS b. Fairshare c. The EIF (pending) Level 3: Entities and agencies providing standards certification across all economic activities a. Green products and services b. Qualifications related to greening These are represented diagrammatically on the following chart. 34 Figure 5: Platforms for Green Implementation The highest level is the Government’s decision to recognise greening in all activities of all Ministries. The actual outworking of this will likely be phased and stepwise. Key areas for MSEs are green buildings and green procurement. This office must operate in tandem with the MPSD, MFE and MEER. These levels define the following roles for MOLSMED: a. b. c. d. Leading by example: MOLSMED greening its own operations and programmes The development of green business incubators (in the 6 target areas) to channel training, Using NEDCO and IBIS the training and finance greening The use of Fairshare to support green procurement The role of other Ministries implies the adoption of Government green initiatives beginning in green buildings and green procurement. Specific collaboration will be necessary for line ministries dealing with the six (6) key areas highlighted by the MOLSMED for green MSE development. The main ministries and private sector stakeholders and listed as follows: Area Tourism Construction Government Ministry of Tourism Ministry of Works and Infrastructure and Ministry of Housing 35 Energy and transport Creative industries, carnival and fashion Waste Management: Agriculture Other Ministry of Energy and Energy Affairs Ministry of Transport Ministry of Arts and Multiculturalism Ministry of Trade, Industry and Investment Ministry of Local Government Ministry of Agriculture Ministry of Tourism Ministry of Trade, Industry and Investment Ministry of Education Ministry of Tertiary Education and Skills Training Ministry of Science and Technology Ministry of Communication 36 7. CONCLUSION The National Green Enterprise Policy for Micro and Small Enterprises and Cooperatives (2013-2016) is a decisive move from the Government of Trinidad and Tobago in the direction of sustainable development through diversification by including the private sector at its most granular level. It is designed to provide a framework for the activities that will be targeted by MOLSMED for greening while providing guidance on the mechanism for such support. The present policy document is therefore supported by its Implementation Plan, Communications Plan and Monitoring and Evaluation Plan which are also available from the Ministry of Labour and Small and Enterprise Development. Figure 6: Framework for Implementation INTERMINISTERIAL COMMITTEE: MOLSMED; MPSD; MEWR; MLA; THA GREEN WORKING GROUP Composition dependent 6 areas selected for greening TECHNICAL GROUP 2: TECHNICAL GROUP 1: All Ministries: Formal and NonFormal Education TEST & Ministry of Science and Technology Innovation, Research and Development and Certification COMMUNICATIONS: Public Sensitisation of green issues In order to implement and manage the policy and its ensuing programmes the Ministry will rely upon the support of the Ministry of the Environment and Water Resources, the Ministry of Planning and Sustainable Development, the Ministry of Legal Affairs and the Tobago House of Assembly as key policy drivers. These will comprise the Implementation Committee. Other line Ministries and their agencies will support depending upon the area of MSE development under focus; these will comprise the Green Working Group. Two technical groups will handle 1) the formal and informal education systems and 2) innovation and green technologies. A separate unit will be charged with interministerial and national communications regarding green business. The proposed structure is shown on Figure 6. The Ministry recognises that the greening of the MSE sector is best rolled out in the context of a national green movement. This is the approach that will be adopted as much as possible. The National Green Enterprise Policy for Micro and Small Enterprises and Cooperatives recognises the value of the environment and sustainability in Trinidad and Tobago and the role of the private sector, focusing upon the micro and small enterprise sector. The policy not only charts the course towards a green economy but promises to do so in harmony with the tenets of decent and dignified work. 37 8. APPENDICES Appendix I: Overview of Institutional Landscape for Greening in Trinidad and Tobago Area Overview and Key Players Policy Development and Legal Review This comprises exclusively of Ministries and government agencies. While all Ministries are involved, the key ones are perhaps the Ministry of the Environment and Water Resources, the Ministry of Planning and Sustainable Development, the Ministry of Food Production, the Ministry of Tourism, the Ministry of Energy and Energy Affairs, the Ministry of Legal Affairs, the Ministry of Works and Infrastructure and the Ministry of Tobago Development. Awareness and sensitisation Under the Ministry of the Environment and Water Resources, the Environmental Management Authority (EMA) and the Institute of Marine Affairs (IMA) have crucial functions. Under the Ministry of Tourism, the Tourism Development Company (TDC) has an important implementation role For water and energy management, the Regulated Industries commission (RIC) is the enforcing and implementing agency. The agencies and their respective awareness areas are listed below: EMA :freshwater resources IMA : marine resources Forestry Division (Ministry of the Environment and Water Resources): environmentally sensitive areas and species. The Bureau of Standards: standards The Green Building Council: standards in the construction subsector The Tourism Development Company (TDC) : tourism and accommodation The Ministry of Energy and Energy Affairs, Powergen and Trinidad and Tobago Electricity Commission (T&TEC): energy-related matters Solid Waste Management Company Limited (SWMCOL) : waste management 38 Training in “greenness” Premier Quality Services Limited (PQSL): assists buildings in obtaining energy certification and provides training for individuals for receiving energy auditor certification. Other institutions that offer similar services to PQSL are Arthur Lok Jack Graduate School of Business, Caribbean Institute of Quality (CIQ), School of Business and Computer Science (SBCS) and Caribbean Industrial Research Institute, CARIRI. Trinidad and Tobago Green Building Council (TTGBC): provides training for receipt of energy audit certification for individuals and training for individuals in architectural and civil engineering for Leadership in Energy and Environmental Design (LEED), US standard introduced in 1994 by Green USA Business Council Ministry of Tourism through TDC : provides certification of tourism activities, through the STEP programme Degree and short-course programmes in environmental management, energy efficiency and other related areas, under various tertiary education institutions including but not limited to the University of the West Indies (UWI), University if Trinidad and Tobago (UTT) and the School of Business and Computer Science (SBCS). Other service providers such as small businesses offer training in sustainability related areas. Technical support and consultancy This area is typically dominated by the private sector, and consists of numerous NGOs, NPOs and private, for profit consultants offering technical assistance and consultancy services in environmental and sustainability affairs. Financing Grants Green Fund (MEWR) and Small Grants Programme (UNDP) for communitybased organisation and non-governmental organisations Environmental Trust Fund (EMA) Community Development Fund (MOCD) Innovation fund (i2i) (CCI) Loans Commercial banks Credit unions Other commercial lenders Equity Environmental oversight Venture Capital Incentive Programme Environmental Management Authority (MEWR) Institute of Marine Affairs (MEWR) Forestry Division (MEWR) Ministry of Energy and Energy Affairs Ministry of Housing Ministry of Transport and Ministry of Works and Infrastructure 39 Implementation The Government has implemented programmes which meet some of its greening objectives, including the following: Community-based Environmental and Enhancement Programme (CEPEP): focuses on the environmental protection, enhancement and beautification, and has been operational since 2002. Unemployment Relief Programme (URP): provides short-term employment to citizens of Trinidad and Tobago, designed to enhance the entrepreneurial skills of individuals and community groups, and to assist in the delivery of small-scale projects in various communities. These smallscale projects may be geared at addressing environmental and sustainability matters. Office of Disaster Preparedness and Management (ODPM): concentrates on building national Disaster Risk Management and Climate Change Adaptation capabilities with our partners and coordinate response and recovery operations in order to protect the people, environment and economy and ensure a disaster resilient nation. In addition to the above, the private sector (NGOs, NPOs, CBOs and for-profit businesses) also has programmes with meet environmental and sustainability objectives. 40 Appendix II: MOLSMED Programmes for MSE Development The FairShare Programme is a set-aside programme for MSEs in Trinidad and Tobago managed by the Enterprise Development Division of the MOLSMED. The Programme provides procurement opportunities up to $1 million for qualifying MSEs and co-operatives and aims at promoting the development of MSEs and assisting their holistic capacity development. The FairShare Programme manages an electronic database of MSEs and opportunities, and operates across an electronic platform. It also provides routine training to all registered MSEs in any area deemed important to successfully developing the MSE sector. Cabinet reiterated its approval of the FairShare Programme in 2011. The FairShare Programme is supported in the revised procurement legislation (which is currently under review by a special parliamentary committee). The legislation also indicates that the environment be considered in public procurement. It therefore makes some reference to green procurement. The National Integrated Business Incubation System (IBIS) is a programme developed by the Ministry of Labour and Small and Micro Enterprise Development (MLSMED) that aims to provide a unique mix of business development support, infrastructure and operational and financial support to assist the growth and success of new and existing micro and small enterprises (MSEs). IBIS provides approximately 6 months of training through workshops, seed capital up to $40 thousand and facilities for operation with mentorship for 2 to 3 years. Cabinet granted approval for IBIS in August, 2011 and the project began in October 2011. The National Entrepreneurship Development Company Limited (NEDCO) is responsible for implementing IBIS. 41 Appendix III: Resources to be Used for Environmental Sustainability Coastal and marine resources (including coral reefs, animal habitats and human livelihoods), Freshwater resources Land resources (and the land itself, vis-a-vis erosion, landslides and soil quality, with the associate problems of quarrying, shifting agriculture, urbanisation, deforestation and squatting) Energy resources Tourism resources Biodiversity resources Transportation (improved transport infrastructure and the mixing of fuels) APPENDIX III: TABLE 1: OVERVIEW OF ENVIRONMENTAL POLICIES POLICY AREA AND POLICY Climate Change Ecosystems and Wildlife The National Climate Change Policy (2011) outlines the steps needed for Trinidad and Tobago to progress along a low carbon-path development. The National Environmental Policy ((2006) edited in 2009) looks at the impact that economic, social and ecological changes are having upon the natural environment. The policy defines environmental conservation by defining environmentally sensitive areas, species, invasive species and vulnerable forests, wetlands, and coastal areas as well as water, mineral and energy resources. The Draft Wildlife Policy (2013) supplements the National Wetlands Policy (2002), National Biodiversity Strategy and Action Plan (2001) and the National Climate Change Policy (2011). It stresses the importance of sustainably managing terrestrial gaming and ecotourism related to indigenous wildlife and the protection of flora and fauna from invasive species, especially entering from ports. The policy’s subsequent laws define which wildlife species are protected and which are gaming animals and it states the specific gaming seasons. The policy articulates with the National Biosafety Framework Project (2007?) in that it echoes the intention of distinguishing between natural animals and plants and those that are genetically modified, with a view to assessing what impact these can have upon domestic ecosystems before introducing them to the domestic system. Limitations exist in the Wildlife Policy and the laws with which it articulates: the Conservation of Wildlife Act (1958) and the Fisheries Act restrict the policy's applicability to freshwater fish, shellfish and marine mammals, which are considered freshwater fish in existing legislation. Additionally, special licences are needed for hunting on state lands but not for private lands. Finally, while Trinidad and Tobago is also a signatory to Convention on International Trade in Endangered Species of Flora and Fauna (CITES) all enforcement mechanisms appear to be weak. The National Biodiversity Strategy and Action Plan (2013) proposes a strategy for sustainably utilizing Trinidad and Tobago's biodiversity in the context of socioeconomic development. National Protected Areas Policy (2011) recognises certain areas as important tools for achieving environmental sustainability. Resource Management: The Integrated Water Resources Management (2005) focuses upon the nation's freshwater resources with an aim to manage it so as to improve or maintain its quality 42 Water, Land and Trees while supporting both human development (socio-economic) and natural eco-systems. The policy underscores the importance of maintaining quality groundwater, restoration of the same via reforestation, the introduction of a strong “polluter pays” principle deployed through CECs and EIAs. National Spatial Development Strategy (2012) provides the framework for decisions about the ways land will be used and developed over the next decade. It prioritises space for food security (agriculture and fisheries), sustainable use of natural resources, managed landscapes, culture, sport and recreation, sustainable transport, energy efficiency and waste management. The National Forestry Policy (2011) places emphasis upon the function of forests in reducing greenhouse gases. The policy objectives are the optimization of the use of forest resources for supporting livelihoods (related to cultural activities including religion while ensuring sustainable extraction of timber and use of wildlife), the protection and the enhancement of the natural productivity of forest ecosystems. CulturoEnvironmental Assets, Eco- and Agro-Tourism The National Tourism Policy (2010) is the only policy that speaks directly to the role of business activities to the economy of Trinidad and. Some emphasis is placed upon ecoand agro-tourism. Waste Management: Reduce, Reuse and Recycle An Integrated Solid Waste/Resource Management Policy for Trinidad and Tobago (2012) sets out the foundation for effective nationwide waste management. It revolved around waste prevention and minimisation, awareness promotion and stakeholder involvement and collaboration. It proposes a system of incentives and disincentives to encourage prudent waste management. These include a deposit-refund system, institutionalised buyback systems and disposal bans. The policy recognises six (6) categories of waste. Appendix III: Table 2: Policies and Related Laws Related Policy National Biodiversity Strategy (2001) Legislation Environmentally Sensitive Areas (ESAs) Rules (2001) Plant Protection Act (63:56) (2001) Marine Areas (Preservation & Enhancement) Act (Chap 37:02) (revised in 2011) Integrated Water Management Policy (2005) Water and Sewerage Act (Chap 54:40) (2006) Regulated Industries Commission Act (Ch. 54:73) (updated 2011) Also related to the National Renewable Energy Policy (2011) Water Pollution Rules (2006) 43 National Environmental Policy (2006) Environmental Management Act (2001, revised in 2009) Miscellaneous Taxes Act Ch. 77:01 (updated in 2011) Related to all other environmental policies, including National Biodiversity (2001) Water Management (2005) Certificate of Environmental Clearance Rules (2001) Draft Air Pollution Rules (2010) Noise Pollution Control Rules Ch 35:05 (Under the Environment Management Act (2000) Tobago House Of Assembly Act (Ch 25:03) (updated 2011) National Tourism Policy (2010) Chaguramas Development Authority Act (35:02) (1995); National Forest Policy (2011) Forests Act (Chap 66:01) (revised in 2011) Agricultural Fires Act Ch 63:02 (reviewed in 2011) National Climate Change Policy (2011) Fisheries Act (Chap 67:51) (reviewed in 2011) DRAFT Renewable Energy (2011) Finance Act No. 30 (2010) No policy, but the policy impacts upon draft Renewable Energy Policy (2011)) Motor Vehicles and Road Traffic Act (Chap 48:50) (reviewed in 2011) Trinidad and Tobago Electricity Act (Chap 54:70) (reviewed in 2011) DRAFT Integrated Solid Waste/Resource Management Policy (2012) Draft Waste Management Rules (2008) Waste Management Rules contributed to Solid Waste Management Policy (2012) Draft Beverage Container Bill (2012) Litter Act Ch 30:52 (updated in 2011) DRAFT National Strategy (2012) Spatial Development Town and Country Planning Act (Chap 35:01) (revised in 2011) Land Acquisition Act 73 (2001); (See 58:01) State Lands Act 25 (2006); (See 57:01) State Land (Regularisation of Tenure) (Act 25 (1998); (See 57:05) 44 Appendix IV: Institutional Environment Policy Development and Legal Review This comprises exclusively of Ministries and government agencies. While all Ministries are involved, the key ones are the MEWR, MPSD, MFP, MOT, MEEA, MLA, MWI and the Ministry of Tobago Development. MEWR: EMA and the IMA MOT: TDC For water and energy management, the Regulated Industries commission (RIC) is the enforcing and implementing agency. Environmental Jurisprudence and Judiciary The Environmental Commission, a court for environmentally-related litigation. Conceptualised in 1995, under the Environmental Management Act, the Environmental Commission is currently guided by the Environmental Management Act 2000. http://www.ttenvironmentalcommission.org Awareness and sensitisation The agencies and their respective awareness areas are listed below: State-led: MEEA; EMA (freshwater resources) and IMA (marine resources); Forestry Division (MEWR): environmentally sensitive areas and species; the TTBS (awareness and implementation of international standards regardless of industry); TDC (tourism and accommodation); Powergen and T&TEC (energy-related matters); SWMCOL (waste management) Private sector: The Green Building Council: standards in the construction subsector; numerous NGOs 45 Training in “greenness” Premier Quality Services Limited (PQSL): assists buildings in obtaining energy certification and provides training for individuals for receiving energy auditor certification. Other institutions that offer similar services to PQSL are Arthur Lok Jack Graduate School of Business, Caribbean Institute of Quality (CIQ), School of Business and Computer Science (SBCS) and Caribbean Industrial Research Institute, CARIRI. TTGBC: provides training for receipt of energy audit certification for individuals and training for individuals in architectural and civil engineering for Leadership in Energy and Environmental Design (LEED), US standard introduced in 1994 by Green USA Business Council MOT through TDC: provides certification of tourism activities, through the STEP programme Degree and short-course programmes in environmental management, energy efficiency and other related areas, under various tertiary education institutions Other service providers such as small businesses offer training in sustainability related areas. In March 2011, Trinidad and Tobago has signed on the Extractive Industries Transparency Initiative (ETTI). 29 Besides stating that the operations of extractive industries must be fully reported, ETTI guidelines hold companies responsible for the replacement of and/or compensation for negative net effects of their operations. Environmental restoration (land rehabilitation, pollution control etc.) and social remediation open the way for the private sector. 29 The ETTI is based in Oslo, Norway. Details of the T&T entrance to ETTI are found here: http://www.tteiti.org.tt/about-tteiti/ 46 Appendix V: Business Development Agencies Technical support and consultancy This area is typically dominated by the private sector, and consists of numerous NGOs, NPOs and private, for profit consultants offering technical assistance and consultancy services in environmental and sustainability affairs. Payment for Environmental Services Miscellaneous consultants (such as the Cropper Foundation, CANARI and Veni Apwan etc.) involved in community development. Financing Grants Green Fund (MEWR) and Small Grants Programme (UNDP) for community-based organisation and non-governmental organisations Environmental Trust Fund (EMA) Community Development Fund (MOCD) Innovation fund (i2i) (CCI) Research Development Facility Loans Commercial banks Credit unions Other commercial lenders Equity Venture Capital Incentive Programme Environmental oversight Environmental Management Authority (MEWR) Institute of Marine Affairs (MEWR) Forestry Division (MEWR) Ministry of Energy and Energy Affairs Ministry of Housing Ministry of Transport and Ministry of Works and Infrastructure 47 Implementation The Government has implemented programmes which meet some of its greening objectives, including the following : Community-based Environmental and Enhancement Programme (CEPEP): focuses on the environmental protection, enhancement and beautification, and has been operational since 2002. Unemployment Relief Programme (URP): provides short-term employment to citizens of Trinidad and Tobago, designed to enhance the entrepreneurial skills of individuals and community groups, and to assist in the delivery of small-scale projects in various communities. These small-scale projects may be geared at addressing environmental and sustainability matters. Office of Disaster Preparedness and Management (ODPM): concentrates on building national Disaster Risk Management and Climate Change Adaptation capabilities with our partners and coordinate response and recovery operations in order to protect the people, environment and economy and ensure a disaster resilient nation. In addition to the above, the private sector (NGOs, NPOs, CBOs and for-profit businesses) also has programmes with meet environmental and sustainability objectives. General Business Development Agri-business The National Entrepreneurship Development Company (NEDCO), MOLSMED The National Integrated Business Incubator System (IBIS) and FairShare Programme, MOLSMED (detailed in Appendix I) Youth Business Trinidad and Tobago (YBTT) The Community Development Fund, Ministry of Community Development Youth Apprenticeship Programme in Agriculture, Ministry of Food Production Youth Training and Employment Partnership Programme (YTEPP) Various courses offered by tertiary institutions such as the University of Trinidad and Tobago and University of the West Indies. Agricultural associations such as Trinidad and Tobago Agri Business Association and Trinidad and Tobago Association of Small AgroProcessors 48 Appendix VI: Key Environmental Legislation Area General laws Legislation Shipping Act (1987): Registration and licensing of ships, matters relating to crews, safety of life at sea and matters incidental thereto. Standards Act (1997): To provide general authority to promulgate standards that improves environmental performance. Minerals Act (2000): Regulation of mining and treatment of matters connected to mining. This act does not apply to hydrocarbon exploitation. Petroleum Act (Chap 62:01) (revised in 2011): To consolidate and amend the law relating to petroleum so as to make better provision for the exploration for, and the development and production of, petroleum, and for matters consequential or incidental thereto. Disaster Measures Act Ch 16:50 (updated in 2007): To take prompt measures to alleviate the effects of a disaster. Trade Ordinance (1958): To prohibit or regulate the importation into Trinidad and Tobago, by creating a “negative list”. The law impacts upon Wildlife Policy (2013) Biodiversity and ecosystems Environmentally Sensitive Areas (ESAs) Rules (2001): To provide the EMA the authority to designate environmentally sensitive areas (ESAs) in Trinidad and Tobago. Plant Protection Act (63:56) (2001): Marine Areas (Preservation & Enhancement) Act (Chap 37:02) (revised in 2011) To protect and manage Trinidad and Tobago’s marine areas through special steps for (a) preserving and enhancing the natural beauty of marine areas, (b) the protection of the flora and fauna of such areas;(c) the promotion of the enjoyment by the public of such areas; and (d) the promotion of scientific study and research in respect of such areas. Water quality Water and Sewerage Act (Chap 54:40) (2006): Management of water distribution in Trinidad and Tobago. Regulated Industries Commission Act (Ch. 54:73) (updated 2011): Regulating water and electricity markets in Trinidad and Tobago. For a Regulated Industries Commission to perform certain functions with respect to service providers including the licensing of service providers and making consequential amendments to related Acts. Water Pollution Rules (2006) Environmental Management Environmental Management Act (2001, revised in 2009): To make provision for the management of the environment within Trinidad and Tobago and the protection of its natural resources; To establish the Environmental Management Authority (“the Authority”), an Environmental Trust Fund and the Environmental Commission of Trinidad and Tobago Miscellaneous Taxes Act Ch. 77:01 (updated in 2011): To raise revenue by the imposition of certain taxes. Related to all other environmental policies, including National Biodiversity (2001) and Water Management (2005) Certificate of Environmental Clearance Rules (2001) To regulate the process for obtaining a certificate of environmental clearance, supported by two other pieces of subsidiary legislation being the Certificate of Environmental Clearance (Designated Activities) Order 2001 as amended and the Certificate of Environmental Clearance (Fees and Charges) Regulations 2001. 49 Air quality and noise pollution Draft Air Pollution Rules (2010) To regulate air pollution in Trinidad and Tobago by limiting the release of specific air pollutants from stacks and non-point sources. Noise Pollution Control Rules Ch 35:05 (Under the Environment Management Act (2000) Tobago House Of Assembly Act (Ch 25:03) (updated 2011) To provide the Tobago House of Assembly legal power to formulate and implement environmental policies in Tobago. Forests Forests Act (Chap 66:01) (revised in 2011) The management of forests and forest produce; the regulation of the extraction of balata gum, the timber industry and designation of forest reserves Agricultural Fires Act Ch 63:02 (reviewed in 2011) To designate a fire season, regulate agricultural fires and appoint of fire control officers and guardians. Climate change Fisheries Act (Chap 67:51) (reviewed in 2011): To regulate fishing in the waters (all rivers, whether tidal or otherwise, and to the Territorial Sea of Trinidad and Tobago) of Trinidad and Tobago. Land management and space Town and Country Planning Act (Chap 35:01) (revised in 2011): The orderly and progressive development of land in both urban and rural areas and to preserve and improve the amenities thereof. Land Acquisition Act 73 (2001); (See 58:01) State Lands Act 25 (2006); (See 57:01) State Land (Regularisation of Tenure) (Act 25 (1998); (See 57:05) Renewable energy Finance Act No. 30 (2010): To provide for the variation of certain duties and taxes Solid Waste Tourism No policy, but the policy impacts upon draft Renewable Energy Policy (2011)) Motor Vehicles and Road Traffic Act (Chap 48:50) (reviewed in 2011): To regulate of motor vehicles and road traffic in Trinidad and Tobago. Trinidad and Tobago Electricity Act (Chap 54:70) (reviewed in 2011): To establish electricity commission for Trinidad and Tobago, to enable the commission to generate and supply electrical energy and for other purposes in connection therewith. Draft Waste Management Rules (2008): Waste Management Rules contributed to Solid Waste Management Policy (2012) Draft Beverage Container Bill (2012) Litter Act Ch 30:52 (updated in 2011) Chaguaramas Development Authority Act (35:02) (1995) 50 Appendix VII: Fiscal Incentives for Greening in Trinidad and Tobago Area Non-renewable energy Renewable energy Gradual phasing out of fuel subsidies starting with gasoline. 30 There was a 44 percent increase in the price of gasoline in 2012. Diesel prices have remained unchanged. Amendments to Miscellaneous Taxes Act (2011) to support deployment of renewable energy technologies (as per National Climate Change Policy). 25% tax credit on solar water heaters, household installation There is a conditional duty exemption for solar water heater manufactures 150% wear and tear allowance for solar water heaters, solar water heater plants, machinery and equipment and solar photo voltaic systems No VAT on wind turbines No VAT and motor vehicle tax on vehicles less than 2 years old which run on compressed natural gas (CNG) No percent VAT on SWH and solar PV Systems Energy Service Companies (ESCO) 150% allowance for the design and installation of energy saving systems by an ESCO ESCOs can write off the value of assets in 2 years at 75 percent depreciation (plant, machinery and equipment acquisition) and 25 percent for wear and tear. The Environment and Ecosystems Management To fund environmental projects, the Government of Trinidad and Tobago extracts the green levy (0.01 percent) from all corporate revenue. The Green Fund is currently estimated at $2.9 billion TTD. (See Green Fund, below) See Appendix VIII: Multi-Purpose Funds in Trinidad and Tobago Community Development Fund – Ministry of Community Development The Community Development Fund is managed by the Ministry of Community Development (MOCD). The CDF is allocated funds from Trinidad and Tobago’s national annual budget. The CDF has been apportioned 15 million TTD in the fiscal years 2013- 2013 and 2011- 2012, and 10 million TTD in the fiscal year 2010-201. According to the MOCD, "the Community Development Fund was first established 1996 under a Loan Agreement with the Inter American Development Bank (IABD). The GOTT established the Fund as a bridging mechanism for tackling poverty and assisting with the delivery of services to the poor and vulnerable population. The following key objectives were established: 30 As a consequence of the reducing, in October 2012, the price of premium unleaded gasoline price rose to $5.75 per litre, a 44 per cent increase over the previous $4 per litre. Subsidies exist on diesel, $ 1.83, and for super gasoline, $2.71, with the majority of the fuel subsidy affecting the price of diesel. Prior to the reduction of the subsidy on premium unleaded gasoline, the total fuel subsidy amounted to an estimated $4 billion TTD per annum. 51 1. 2. 3. The establishment of an efficient complementary mechanism for delivering basic social services and infrastructure to the poor, using the initiatives of NGOs, community organisations and other agencies. Strengthening the institutional capacity of NGOs and community based organisations; and Increasing beneficiary participation in poverty alleviation efforts." The Fund may be used to alleviate poverty through activities related to environmentally and energy efficient sustainable development. Ideas to Innovation (i2i) Competition - Ministry of Planning and Sustainable Development The Council for Competitiveness and Innovation (CCI) was founded in 2011 by the Government as an advisory body for the Ministry of Planning and the Economy. The CCI created the i2i (Idea 2 Innovation) competition as a vehicle for the development of ideas with commercial potential. This competition represents an investment in the creativity, potential and ingenuity of citizens of Trinidad and Tobago to conceive new inventions and innovative projects. In 2012, the first i2i was executed, and a total of 4.7 million TTD was granted to wining projects, with the most innovative project winning $200,000 TTD. The annual financing available to i2i depends on Trinidad and Tobago’s national fiscal allocation to the initiative. Innovative, commercially viable projects related to greenness are eligible for funding. Micro Enterprise Loan Facility - Ministry of the People and Social Development The Ministry of the People and Social Development describes the Facility as follows: “The Micro Enterprise Loan (MEL) Facility, managed by Ministry of the People and Social Development and the United Nations Development Programme (UNDP), offers assistance to under-privileged persons who wish to establish a micro business but are unable to do so due to limited financial resources. This service is administered by various community-based organisations. [sic.] A maximum loan of TT$10,000 is available.” Research Development Facility The Research and Development Facility (RDF) aims to stimulate and support investment in new and advanced technology and innovation for businesses in the non-energy manufacturing and service sectors. The Facility is designed for businesses that need to acquire specialised technology or generate new ideas in order to maintain viability and improve profitability. The RDF is implemented by the Business Development Company Ltd. (BDC), with the support of the Ministry of Trade and Industry. Businesses that intend to pursue research and development projects as an integral component of their strategic or business plan must meet the following criteria to qualify for funding from the RDF: 1. 2. 3. 4. 5. 6. Be locally owned and operated. Operate in the non-oil manufacturing or services sector. Have been in existence for a minimum period of two years. Can contribute at least one third of the cost of the proposed project. Have annual sales turnover between TT$50,000 and TT$5,000,000. Have investments in non-property assets (e.g., machinery, equipment, working capital, etc.) valued from TT$50,000 to TT$5,000,000. Quoted from Government of Trinidad and Tobago: www.ttconnect.gov.tt 52