Government of Barbados Permanent Secretary Ministry of the Environment and Drainage, Environment Division Warrens Tower 2 9th and 10th Floors Warrens, St. Michael Barbados T: +1 (246) 467 5721/5700 F: +1 (246) 437 8859 E: [email protected] www.gisbarbados.gov.bb Scoping Study University of the West Indies Office of the Pro Vice-Chancellor and Principal University of the West Indies Cave Hill Campus St. Michael Barbados T: +1 (246) 417 4030-32 BARBADOS F: +1 (246) 417 0246 E: [email protected] www.cavehill.uwi.edu UNEP Division of Technology, Industry & Environment Economics and Trade Branch 11-13, chemin des Anémones 1219 Châtelaine / Geneva Switzerland T: +41 (0)22 917 8243 F: +41 (0)22 917 8076 E: [email protected] www.unep.org/greeneconomy Job No. DTI/1801/GE Citation Moore, W., Alleyne ,F., Alleyne, Y., Blackman, K., Blenman, C., Carter, S., Cashman, A., Cumberbatch, J., Downes, A., Hoyte, H., Mahon, R., Mamingi, N., McConney, P., Pena, M., Roberts, S., Rogers, T., Sealy, S., Sinckler, T. and A. Singh. 2014. Barbados’ Green Economy Scoping Study. Government of Barbados, University of West Indies - Cave Hill Campus, United Nations Environment Programme, 244p. Copyright © 2014 United Nations Environment Programme This publication was produced in close cooperation with the Government of Barbados and the University of West Indies – Cave Hill Campus. This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holders, provided acknowledgement of the source is made. The copyright holders would appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the copyright holders. 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BARBADos’ GREEN ECONOMY SCOPING Study JUNE 2014 TABLE OF CONTENTS x Acknowledgements vi List of annexes vii List of figures vii List of tables viii List of boxes ix List of acronyms xii Forewords 1 EXECUTIVE SUMMARY 2 The genesis of Barbados’ Green Economy Scoping Study 2 Transformation to a green economy 3 The potential for greening various sectors 3 Agriculture 4 Fisheries 6 Building/Housing 7 Transportation 8 Tourism 10 Analysis of enabling conditions for a transition to a green economy 10 Finance 10 Development, access and transfer of clean technology 11 Trade, tariffs and investment 11 Taxation, incentives and fiscal reform 12 Education, training and capacity enhancement 12 Standards and regulation 12 Government procurement 13 Considerations for a green economy policy roadmap 15 1 INTRODUCTION 16 1.1 Country profile 16 1.1.1 Geography and demography 18 1.1.2 Ecosystem services 19 1.1.3 Water 23 1.1.4 Waste 25 1.1.5 Energy 32 1.1.6 Economic review and outlook 34 1.1.7 Sustainable development policies, plans, legislation and projects 37 1.2 Barbados’ Green Economy Scoping Study 37 1.2.1 Basis of a scoping study 37 1.2.2 Defining Barbados’ scoping study 38 1.2.3 Terms of reference of Barbados’ scoping study 38 1.2.4 Methodological approach and process 44 1.2.5 Structure of the report iv BARBADOS GREEN ECONOMY SCOPING STUDY 47 2 TRANSFORMATION TO A GREEN ECONOMY 48 2.1 Concept of green economy 53 2.2 Relationship between regional and international environmental framework and green economy 55 2.3 Applicability of the green economy concept to small open economies 57 2.4 Barbados’ definition of a green economy 59 3 THE POTENTIAL FOR GREENING VARIOUS SECTORS 60 3.1 Agriculture 60 Key messages 61 3.1.1 Background 66 3.1.2 Resource use and efficiency measures 67 3.1.3 Investment gaps 71 3.1.4 Potential returns in terms of economic growth, development and poverty reduction 72 3.1.5 Potential for green jobs creation and transmigration 72 3.1.6 Potential for environmental improvement 72 3.1.7 Conclusions 73 3.1.8 Summary 76 3.2 Fisheries 76 Key messages 77 3.2.1 Background 83 3.2.2 Resource use and efficiency measures 85 3.2.3 Investment gaps 87 3.2.4 Potential returns in terms of economic growth, development and poverty reduction 90 3.2.5 Potential for green jobs creation and transmigration 91 3.2.6 Potential for environmental improvement 92 3.2.7 Conclusions 92 3.2.8 Summary 96 3.3 Building/Housing 96 Key messages 97 3.3.1 Background 104 3.3.2 Resource use and efficiency measures 106 3.3.3 Investment gaps 112 3.3.4 Potential returns in terms of economic growth, development and poverty reduction 113 3.3.5 Potential for green jobs creation and transmigration 114 3.3.6 Potential for environmental improvement 116 3.3.7 Conclusions 117 3.3.8 Summary 120 3.4 Transport 120 Key messages 121 3.4.1 Background 125 3.4.2 Resource use and efficiency measures 128 3.4.3 Investment gaps 131 3.4.4 Potential returns in terms of economic growth, development and poverty reduction 134 3.4.5 Potential for green jobs creation and transmigration 135 3.4.6 Potential for environmental improvement 136 3.4.7 Conclusions 137 3.4.8 Summary 140 3.5 Tourism 140 Key messages 141 3.5.1 Background 145 3.5.2 Resource use and efficiency measures 149 3.5.3 Investment gaps 153 3.5.4 Potential returns in terms of economic growth, development and poverty reduction v 156 3.5.5 Potential for green jobs creation and transmigration 156 3.5.6 Potential for environmental improvement 156 3.5.7 Conclusions 157 3.5.8 Summary 161 4 ANALYSIS OF ENABLING CONDITIONS FOR A TRANSITION TO A GREEN ECONOMY 162 4.1 Analysis of existing macro enabling conditions 162 4.1.1 Finance and investment 165 4.1.2 Development, access and transfer of clean technology 168 4.1.3 Tariffs and trade policy 169 4.1.4 Taxation, incentives and fiscal reform 172 4.1.5 Education, training and capacity enhancement 174 4.1.6 Standards and regulation 177 4.1.7 Government procurement 177 4.1.8 Governance and Institutions 179 4.1.9 Data, information and communication 182 4.2 Enabling conditions for identified sectoral opportunities 183 4.3 Conclusions 187 5 CONSIDERATIONS FOR A GREEN ECONOMY POLICY ROADMAP 189 5.1 Operational principles of sustainability for building a resource efficient green economy 190 5.2 Policy cohesion, governance and institutions 192 5.3 Public sector leadership and public procurement 193 5.4 Private sector commitment 194 5.5 Public education 195 5.6 Partnerships and synergies 198 5.7 Periodic monitoring 199 5.8 Promote SIDS-SIDS Knowledge transfer of green economic policies and practices 200 5.9 Capacity building 202 5.10 Building a science policy research platform 205 6 CONCLUSIONS 210 7 NOTES 212 8 WORKS CITED LIST OF ANNEXES 217 Annex 1 Terms of reference of Barbados’ Green Economy Scoping Study 220 Annex 2 Methodology sheet for stakeholder discussions 221 Annex 3 Green accounting 222 Annex 4 Synergies between enabling conditions for a green economy and MEA implementation vi BARBADOS GREEN ECONOMY SCOPING STUDY LIST OF FIGURES 22 Figure 1 Development of control zones 25 Figure 2 Fuel imports (% of merchandise imports) 26 Figure 3 Electricity consumption by industry (2009, in GWh) 27 Figure 4 CO2 emissions from electricity generation by sector, 2009 28 Figure 5 Nitrous oxide emissions in Barbados 28 Figure 6 Methane emissions in Barbados 29 Figure 7 Annual CO2 emissions in Barbados 31 Figure 8 Commercially-viable renewable energy technologies 32 Figure 9 Human Development Index in Barbados 34 Figure 10 Inflation and key components of the retail price index 39 Figure 11 Relationship between cross-cutting issues and industry analysis 41 Figure 12 Integrated Assessment Process 45 Figure 13 Umbrella methodology utilised for the Green Economy Scoping Study 48 Figure 14 Elements of sustainable development 142 Figure 15 Number of rooms at various accommodation establishments 165 Figure 16 Facilitating technology transfer 175 Figure 17 Core principles of Collaborative Standards Initiative 189 Figure 18 Strategic roadmap for Barbados LIST OF TABLES 20 Table 1 Legislation aimed at protecting ecosystem services 21 Table 2 Breakdown of available water resources 21 Table 3 Estimated water consumption 26 Table 4 Energy supply in Barbados (GWh) 27 Table 5 GHG emissions for fuel types 30 Table 6 Electricity tariffs in Barbados 30 Table 7 Renewable energy technology potential of Barbados 33 Table 8 Key macroeconomic indicators of Barbados 35 Table 9 Labour market statistics 54 Table 10 Barbados’ participation in MEAs 62 Table 11 Estimated