Achieving the true potential of a green economy in the Caribbean will require approximately US $16.1 billion in investments by 2040. This is according to Executive Director of the Caribbean Export Development Agency, Dr. Damie Sinanan. Speaking at the Caribbean Investment Forum last month, Dr. Sinanan highlighted that while the shift towards a more sustainable economic model is essential for the region’s resilience, it comes with a hefty price tag.
“The reality is that a green economy transition is going to cost a lot and requires significant investment,” Sinanan stated.
He referenced an Inter-American Development Bank (IDB) report which noted that the substantial sum underscores the financial commitment needed to implement the necessary infrastructure and technologies to support a greener economy.,
He said the Caribbean’s vulnerability to climate change—manifested through rising sea levels, severe hurricanes, and unpredictable weather—necessitates a decisive move towards greener practices. However, this transition is not merely about mitigating environmental risks; it is also an opportunity to drive economic growth and create jobs. However, the challenge lies in securing the significant investment needed to make this shift a reality.
Despite the considerable cost, the green economy transition offers promising prospects according to Dr. Sinanan. The International Labour Organization (ILO) and the IDB estimate that decarbonization efforts could generate around 400,000 jobs in the region. Furthermore, the International Renewable Energy Agency (IRENA) forecasts that every US dollar invested in energy transition could yield an additional 93 cents in GDP growth, exceeding the growth expected under a business-as-usual scenario.
These figures he said, highlight the dual nature of the green economy transition– while it requires significant initial investment, it also holds the potential for substantial economic benefits. The creation of new job opportunities and the stimulation of GDP growth are key incentives for pursuing this transition.
Dr Sinanan emphasized the importance of mobilizing partnerships to support this ambitious endeavor. The Caribbean Investment Forum, he noted, is designed to bring together stakeholders from various sectors to foster collaboration and attract the necessary investment. This collaborative approach is crucial for building the infrastructure needed to drive the green economy forward.
“This, ladies and gentlemen, is at the core of our rationale for a Caribbean Investment Forum…we need to build a robust network of partners to drive this transition effectively,” he said.
In addition to addressing environmental and economic aspects, the green economy transition involves integrating renewable energy sources, improving energy efficiency, and adopting sustainable practices. These efforts are essential for reducing the region’s carbon footprint and enhancing its resilience to climate change impacts.
