Trinidad and Tobago has committed to reducing our greenhouse gas emissions by 15% by the year 2030. While these targets are much less ambitious than some other Caribbean countries, in particular Barbados, meeting the target is going to require concerted action. And we need to move from talking about the policy changes to actually implementing new policies, now.
Although the coronavirus pandemic has presented significant challenges to Trinidad and Tobago, it also represents an opportunity to rethink and redirect policy. While fossil fuels are going to remain an important part of the economy for many years to come, the more challenging market fundamentals mean that Trinidad has to focus strongly on being globally competitive; that is why energy efficiency must be central to economic policy. We just cannot afford to waste precious resources and we must ensure that every molecule of natural gas provides value to the economy.
Wherever possible, we also have to substitute renewable sources of energy for natural gas. The major solar project announced by the Prime Minister earlier this year should kickstart renewables energy in Trinidad and Tobago and allow the country to leapfrog many other countries in the region, such as Jamaica, who is currently ahead in terms of renewables deployment. The presence of major energy companies in Trinidad and Tobago that have committed to slashing their GHG emissions over the coming decades can, in fact, be a major advantage for the country.
The major European-based energy companies have placed the climate change challenge at the centre of their strategy. This means that they will be making decisions about their investment portfolios based on climate considerations. This offers both a potential threat and, more importantly, a major opportunity for Trinidad and Tobago to work with them to reduce GHG emissions and produce greener energy products.
Hydrogen is receiving a lot of international attention as both a store for energy and a potential source for greener petrochemicals. At the Energy Efficiency and Renewables Conference in June 2019, there was a presentation on a potential opportunity to use waste heat from power generation to produce hydrogen via electrolysis, to be utilised in the Point Lisas, petrochemical sector. The idea was taken up by one company that has developed the concept into an actual investment project, creating a new entity, NewGen, which is actively working on finalising the investment opportunity (and also sponsoring this year’s Conference).
If Trinidad and Tobago is to meet its GHG reduction targets, the country will need to see these sort of investment opportunities bear fruit. It will take sustained action by all stakeholders to drive change in the economy, but these are changes that we have to make. The global energy transition is taking place whether Trinidad and Tobago is part of the change or not. We must stop talking about the changes that we need to make and actually start implementing now, if we are not to be left behind.