Elizabeth Morgan | CARICOM’s focus on energy and climate change

“The war in Ukraine has exposed the profound risks of our fossil fuel addiction.

Today’s crises cannot be an excuse for backsliding or green-washing. If anything, they are a reason for greater urgency, stronger action, and effective accountability” – UN SG at COP27.

If you have been receiving some very high electricity bills here in Jamaica, you will appreciate my interest in CARICOM’s focus on energy in November. I have also written about efforts to promote increasing exports, recognising that lower energy cost is important to reducing production cost, if goods are to be more competitive in export markets.

The theme of CARICOM Energy Month is ‘Our Future is Electric’, and that is indeed so as we now need electricity for most of our activities. With a prolonged power cut, we practically grind to a halt as not much in our homes, stores, offices, and factories can function without electricity.

Climate change is another important issue in November associated with energy. The UN Convention Conference on Climate Change (COP 27) opened on Sunday in Sharm el-Sheikh in Egypt and action to reduce fossil fuel emissions will be central. The prime minister of Saint Lucia, Phillip Pierre, following this weekend’s torrential rains and flooding in his country, has declared that “climate change is real”.

CARICOM delegations to the COP27 had a preparatory meeting on October 15. Given that Climate Change Meetings impact other interest groups, such as energy, consultations and coordination are necessary, and happened, I assume.

I do recall that at the 43rd CARICOM Heads of Government in Suriname, July 3-5, the heads had considered and approved a paper on Economic Development and Energy Transition and Climate Change as its overarching strategy in advancing energy security. So, there is a CARICOM foundation.

FOSSIL FUEL PRODUCERS

Several CARICOM countries – Belize, Suriname, Guyana, Trinidad and Tobago, Barbados, and Grenada – now have identified oil and gas resources. The focus is now on Guyana, the newest producer and exporter of crude petroleum, which is benefiting from high demand and prices.

CARICOM countries are still large importers of petroleum products for the generation of electricity and for fuel. In December 2021, following COP26, one would have thought that fossil fuels (oil, coal and gas), identified as a major contributor to global warming and thus climate change, would be de-emphasised. But, with the war in Ukraine, the emphasis remains on developing and producing fossil fuels to generate electricity and for transport fuel.

Of course, for oil producers, the higher prices are a further incentive for developing and exporting fossil fuels. Subsidies for fossil fuels are also increasing. For importers, high prices are contributing to inflation, rising cost of living and more debt.

I note that the new prime minister of Grenada, Dickon Mitchell, is now looking at developing their oil and gas resources. He is now likely to find investors. Of course, Guyana and Suriname are moving on developing their resources and are looking at collaborating with Trinidad and Tobago and Barbados to meet regional energy needs.

THE GREEN AGENDA

Currently, oil producers in the developing countries, including Africa, are seeing the green agenda as a measure to prevent them from developing their oil and gas resources. Russia, a major oil producer, which had interest in developing countries, including in the Caribbean, did not support measures to reduce fossil fuels use. So, I see a battle on at COP27 on carbon emissions.

But, we in the Caribbean as small island and low-lying coastal countries are feeling the effects of climate change. We need a balanced approach. The scientists and UN officials are telling the world that climate change, regardless of the current economic crisis, is an emergency, a mega crisis, which requires immediate action to stabilise the situation.

This means that for CARICOM, the focus also has to be on developing renewable energy sources – solar, water, wind, biomass, marine, and geothermal – for which the potential has existed in the region but development and use has been limited. Dominica is moving ahead with geothermal energy. As another source, is Jamaica revisiting nuclear energy?

There has to be greater focus in the region on developing these alternative energy sources. I assume that during this month, CARICOM will be highlighting work on these alternative sources. Conservation measures also continue to be an option for importing countries. Though, I am not sure how much more one can conserve to any great effect, in the short term, when faced with increasing prices and foreign exchange fluctuations.

So, in November, the CARICOM discussion on energy must include the outcome of COP27 on climate change, the sustainable development and use of fossil fuels, and renewal energy. Our delegations at COP27 will be calling on the G20 countries, which include all the major carbon emitters, to honour their obligations and, on the G7, in particular, to ensure that the financing is available to this region for building climate resilience which includes developing renewable energy sources.

The issues before us are quite complex and the environment quite toxic on several fronts, as we still aim to achieve sustainable development. These are indeed challenging times, and it could get worse depending on what happens in our influential northern neighbour.

Elizabeth Morgan is a specialist in international trade policy and international politics. Email feedback to columns@gleanerjm.com