It is my pleasure to address today’s Conference on energy sustainability and energy security for the Caribbean in the face of a global transition to a low carbon footprint. The Theme for the Conference “Collaboration for Action” is topical and has been recognized by the Energy Chamber through continuous discussions around the margins on this matter. In fact, this government has led this conversation regionally. In these discussions there is general agreement on what we need to achieve and the direction that we must pursue. Individually, countries have been pursing their own plans of action but what is required is a more cohesive action plan for the Caribbean. We will always be stronger together which is necessary for a successful and just energy transition.

As a region, we should actively work together to solidify our commitment to Sustainable Development recognizing that globalization, efforts toward integration, and the complexity of environmental issues pose challenges and offer opportunities to our region. As we shift the focus to our sustainable goals for energy, there has been one key factor shaping all our future policy measures and instruments, which is the impact of climate change. The Intergovernmental Panel on Climate Change (IPCC) Special Report on Global Warming indicates that emissions of greenhouse gases must be cut by 50% by 2030 to limit warming to 1.5 degrees Celsius. Recent projections at COP28 have suggested achieving these targets will be challenging. The Global Renewables and Energy Efficiency Pledge recognized the need for a significant increase in the deployment of renewables and energy efficiency improvements on a global scale by 2030, to maintain warming well below 2°C and limit warming to 1.5°C, in line with the Paris Agreement.

As a region we are endowed with substantial resources to ensure energy sustainability and energy security for the region in the transformation to low carbon economies. It is estimated that the Caribbean holds 2,525.9 MW of potential solar energy, 800.4 MW of potential wind energy, and 3,770 MW of potential geothermal energy. Yet the installed operational renewable energy of the CARICOM region, including hydroelectric power stands approximately at a mere 645MW.

This figure only accounts for a small fraction of the region’s untapped potential as it accounts for only a penetration rate of 12%. Notwithstanding, there is a commitment within the region to increase the percentage of renewables in the energy mix. In this regard the Caribbean Community has set a target of 47% renewable energy contribution to total electricity generation by 2027 and 55% by 2030. It is estimated that Caribbean Islands will need to add 4 GW of renewable energy capacity, requiring approximately US$ 9 billion in additional investments to comply with their Nationally Determined Contributions. This is no small financial feat.

The transition to renewables is driven not only by climate change as the region is a negligible emitter of carbon dioxide, but also by the need for the region’s energy supply to become more resilient, sustainable and economical. Embracing renewable energy sources such as solar, wind, and geothermal power provide a sustainable alternative which is competitive with the conventional forms of energy. Whilst Solar and Wind technologies, in particular, have become more competitive, I submit that there is still a need for assistance, not necessarily in the form of subsidies or incentives, across the Caribbean. Solar, in particular, benefits from being relatively straightforward to construct and can be attractive to financiers. But one of the region’s problems is scale and another is bankability, if we are being honest. The journey towards sustainable energy in the Caribbean is underway, but to date, the region’s energy transition has been slow and incremental. To gain momentum, requires the dedication and collaboration of individuals, organizations, and governments. Through investments, partnerships, and a shared commitment to resilience and diversity, the region can overcome its energy challenges. I add that the wealthy developed and developing nations who are the bad actor emitters also have a responsibility and obligation to assist us. The small nature of Caribbean economies and energy grids results in micro and macro renewable-energy projects. Many Caribbean countries are small and have limited viable space for utility-scale projects such as solar or onshore wind farms. In addition, several of the existing energy systems are not equipped to incorporate renewables. Clean energy projects are also associated with high costs which makes size important. Larger islands are equipped to undertake utility scale projects as they are able to meet the spatial requirements of these projects. However, the paradigm may be changing as while much of the growth over the past 10 years has been on larger islands, advancements in the efficiency and reduction in cost of renewable energy technology will allow all islands to increase the use of renewables.

The modular nature of renewable energy systems supports a trend towards distributed generation, where public utilities are making way for independent power producers and large industrial consumers. For small businesses and homeowners, grid-tied renewable energy systems can provide an affordable option to reduce energy bills. Currently the majority of the Caribbean’s utilities are state owned and based on the use of fossil fuels. However, several utilities in the region are aggressively seeking clean energy solutions to create grids that are independent from imported fuels and resilient to the impacts of climate change. The challenge for these utilities will be to attract high-quality investments in the energy sector that will support their aspirations to drive down the cost of electricity and to create a sustainable energy supply. This is where collaboration based on public-private partnerships can provide the region with the opportunity to build innovative and finance renewable cost-effective energy solutions, spreading the financial risk and introducing private sector operational efficiency and technology. It is a concept that Trinidad and Tobago has embraced. The country’s first major utility scale project, Project Lara, a consortium of bp Alternative Energy Trinidad and Tobago, Shell Renewables Caribbean, and state-owned National Gas Company of Trinidad and Tobago is a representation of such partnership. It is our intention to generate 30% of our electricity from renewables. Towards this end there are plans for inviting proposals for utility scale solar projects utilizing reclaimed land previously used for quarrying. The Ministry of Energy and Energy Industries has identified vacant state lands located in North East Trinidad that are suitable for solar utility scale projects. It is estimated that the establishment of solar utility projects at these sites when combined with Project Lara could meet the 30% goal of power generation from renewables set by the Government. I intend to go to Cabinet within the next couple of weeks with a note to pursue a RFP for more utility scale solar projects. In addition to solar, there are other avenues for collaboration between the State and private sector as the Government pursues the diversification of Trinidad and Tobago’s (T&T’s) energy sector to incorporate clean and Renewable Energy. High on Government’s agenda is the development of a cleaner hydrogen economy. In Trinidad and Tobago, hydrogen is an important input in petrochemical production and is currently derived from natural gas. Our hydrogen policy envisages the movement to cleaner hydrogen from renewable sources not only as a decarbonization tool but also as feedstock for industry and a form of alternative energy. In this regard the Ministry of Energy and Energy Industries in collaboration with National Energy is embarking on a pilot project for the production of green hydrogen. This project will provide a pathway for the participation of downstream petrochemical companies, many of which I am reliably informed, are pursuing green hydrogen projects in other jurisdictions. We need to collaborate to maintain a viable petrochemical industry as there are actions in other jurisdictions such as the European Community which has instituted a carbon border mechanism adjustment that penalizes imports from industries that fail to embrace green technologies. The pilot green hydrogen project is an initial step towards the green hydrogen agenda. I have also authorized the exploration of another commercial scale green hydrogen project which is financially feasible can be pursued as a PPP with NGC Green. Based on the 2023 EU funded Wind Strategy, we have envisaged the establishment of a green hydrogen economy based primarily on offshore wind by 2035. In this regard, a Cabinet appointed Inter-Ministerial and Agency Steering Committee led by the Ministry of Energy and Energy Industries has been tasked with the responsibility of overseeing the deployment of Utility Scale Wind Energy that is aligned with the hydrogen agenda.

As small island developing states, Caribbean countries, despite being negligible emitters of greenhouse gases, we are the ones that bear the brunt of natural disasters. It is therefore imperative that the region becomes an advocate for change for its own economic survival. However, there is reason for optimism. Clean technologies that enable a transformation of the energy sector are more accessible than ever, but financing remains the challenge. The industrialized and developed countries have pledged to provide developing countries with the finance to make the green transition but this to a large extent has not materialized. The Global Climate Fund established to provide climate change financing to developing countries has failed to adequately operationalize this commitment. Time is running out. The Fund’s Board has recognized this shortcoming and has committed in its strategic plan for 2024 to 2027 to significantly improve the access of developing countries access to the Global Climate Fund finance. While this is a welcomed development, the cost of funds must be addressed as renewable projects come with a high cost. There must be consideration of concessional, and even grant, funding for capital renewable projects. The financial sector, which is the foundation of the real economy, can play a crucial role in supplying the required financial resources in light of the substantial investment needs. The banking industry, is essential to a region’s efforts to adapt to climate change and to transit to a low carbon economy. Commercial banks must incorporate the financing of green projects in their portfolio if they are to play a meaningful role in the green transition in the Caribbean. No government or organization can solve climate change alone. The sector grapples with multifaceted challenges that are both urgent and complex, navigating intricate regulatory environments, strained supply chains and escalating costs. The scale of the transition requires cross-sector partnerships bringing together technical expertise and resources. Industry collaboration can break down barriers and drive systemic change through innovation. In this way, businesses can collectively lead the way towards a carbon-neutral future.

The recent SIDS4 conference echoed sentiments of collaborative support from the international community towards access to affordable, reliable, sustainable, and modern energy, and connectivity. The declaration for Renewed Prosperity highlighted the urgent need to enhance support, investment and partnerships for just, inclusive, equitable and resilient energy transitions. It further recognized that this support must be extended to address the underlying barriers in accessing and mobilizing finance to deploy clean energy technologies and overcome structural barriers that currently hinder our energy transition goals.

Oil and gas companies, given their expertise in managing large projects and strong balance sheets can play a leading role in the energy transition. An increasing number of these companies have been investing in and producing energy through renewable technologies. This shift amid global oil and gas companies also comes with the acknowledgement that achieving emission pledges and broader climate goals is not an individual game plan and multi-sectoral partnerships are essential.

The requirement for multisectoral partnerships is underscored by the continuing rise in global energy-related CO2 emissions which grew by 1.1% in 2023, increasing by 410 million tonnes (Mt) to reach a new record high of 37.4 billion tonnes (Gt). In this climate emergency balancing stakeholder demands and conforming to environmental standards is a challenge. This has been evident by decisions of major energy companies to scale back on renewable energy ambitions. Energy majors, Exxon and Chevron have had to reassess their decarbonization agendas to meet investor demands. Environmental, Social and Governance initiatives have seemingly fallen out of favor and companies are now doubling down on their core oil and gas business. Shell, Total Energies and BP have also scaled back on emission targets and clean energy investments.

The increasing level of carbon emissions remains alarming to all residing in the Caribbean, as it continues to be one of the most vulnerable regions to climate change. Trinidad and Tobago like many other Caribbean countries has been taking steps to reduce its greenhouse gas emissions, in keeping with our agreed nationally determined contributions. Initiatives include increasing a greater proportion of renewables in our energy mix, utilizing technology and collaborative partnerships, specific steps to track and reduce the methane output in downstream operations and identification of reservoirs for the carbon capture and storage of CO2. Several countries in the region have implemented a range of mitigation and adaptation measures, including increasing public spending on resilient infrastructure, and many like Trinidad and Tobago have set ambitious targets for emission reductions. While there has been some international financial support it falls substantially short of the funding required. Therefore, as a region we must continue to push for fundamental reforms of global development aid and climate financing to effect the necessary climate mitigation and adaptation measures. In summary, the region finds itself at a climate change crossroad where factors that impact on the region lies outside its control. The region is neither a large polluter or a significant geopolitical player to impact on the pollution level of other regions. Its finance centres are impacted by volatile international financial flows, which contract and expand based on global economic factors. Nevertheless, we can overcome these challenges by pooling our administrative resources to reduce costs, and sharing our knowledge, expertise and experiences. We need to speak up and speak loudly, calling out the main emitters and offenders.

In, closing I wish to congratulate the Energy Chamber for pushing the climate agenda in the Caribbean. I am confident that the deliberations in the Conference will bring us closer to our goal of energy sustainability and energy security. I look forward to the collaboration among stakeholders in achieving this objective.

I thank you.