Advancing the maritime energy transition in the Caribbean

Background  

The Caribbean is highly vulnerable to intensifying impacts of climate change, highly dependent on shipping, and has strong regional cooperation and institutions. The region also has a history of ambitious climate leadership, and several countries are already advancing towards decarbonising their energy systems. The region therefore has both urgency and readiness to lead the energy transition of the shipping sector globally – an industry that produces 2.5% of annual greenhouse gas emissions.

As an industry embedded across sectors of the economy, there are synergies between shipping decarbonisation and countries’ existing development priorities. The report highlights these opportunities and suggests priority actions to help harness them.

The Net-Zero Framework, as currently drafted, will result in the mobilisation of compliance revenues estimated at US$10bn annually to support the just and equitable transition of the global maritime sector. The report also highlights where these compliance revenues could finance the recommended actions to harness these opportunities.

What’s covered in the report? 

• An interpretation of regulation 41 of the draft Net-Zero Framework that frames the report’s understanding and suggestions of what can be considered eligible for financing under its economic element.

• Case studies: Case studies on Antigua and Barbuda, Barbados and Dominica illustrate these developments, synergies and opportunities in practice.

• Specific sectoral concerns: The case studies examine four areas that emerged as common priorities or concerns across the region:

  • Energy security and renewable energy

  • Food and water security

  • Just and equitable transition of the maritime workforce

  • Maritime development

• Regional observations: common patterns that arose through the three case studies and suggestions of activities that could be beneficial to pursue at the regional level.

• Recommendations for specific actors including national governments, multilateral development banks, and shipping companies over different timescales (near-medium term, medium-long term).

Our recommendations

The three overarching recommendations from the report are:

1. Countries can leverage port infrastructure and upgrades to advance their renewable energy transition.
2. Training programmes to fill skills gaps in agriculture and renewable energy could be conducted at the regional level to facilitate knowledge sharing and economies of scale.
3. Advancing the development of synthetic fuels could strategically position these countries as green shipping hubs for the region and secure them early-mover advantages.
   
   

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