A Bold New Caribbean

Renewable energy sources are an important stra- tegic priority for most countries seeking to enhance their energy security and structurally transform their economies. The demand for clean energy and quali- ty jobs, coupled with the positive job creation impact of renewable energy, can foster opportunities con- ducive to higher productivity. The renewable energy sector generates employment directly and indirectly throughout its value chain, including manufactur- ing, distribution, chemical production, project man- agement, installation, operation, and maintenance. Many Caribbean territories have made significant progress in adopting renewable energy sources and setting ambitious net-zero transition targets to achieve sustainable development goal goal 7 (SDG 7: Affordable, Clean and Sustainable Energy). To embrace renewable energy solutions, implementing several projects has provided many job opportunities and encouraged the demand for higher skills, help- ing workers in declining sectors transfer to emerging niches in the green economy 11 . Further, opportunities can develop robust local business ecosystems with the potential to accelerate transformative, long- term economic growth and development. Energy Security In addition to the developmental challenges de- veloping countries face, another challenge for SIDS is their high dependence on fossil fuel imports and ability to absorb price increases. From the perspec- tive of SIDS, dependence on energy imports is a ma- jor energy security concern that makes vulnerability to fluctuating oil prices even more serious. Caribbe- an countries, for example, have long been exposed to the volatility that exists in the oil and gas market, in some cases paying almost double for electricity when compared to the United States, says David L. Goldwyn (2021), who was the leading State De- partment energy diplomat in the first Obama ad- ministration. In the same breath, however, almost all economic activity involves energy as an input, rein- forcing the essential role energy plays in economic transformation, development and growth, making it imperative to secure sustainable energy sources such as renewables-based energy systems. The Job Creation Effect

The Era of “Global Boiling”

2023 2023

Following what scientists confirmed was the hot- test month globally on record, we have officially entered the era of “global boiling,” according to the UN Secretary-General, António Guterres 8 . This transition from global warming to global boil- ing is perhaps the alarm bell reminding us that we urgently need to accelerate our transition to a renewables-based energy system (wind, so- lar, biomass, water geothermal, wave, and hy- dro). Not only is it the solution to addressing the increasing threat of climate change, but it could also strengthen our energy security and provide a roadmap for economic transformation and devel- opment for decades to come. Economic transformation encompasses structural changes, where gears shift from low productivity and labor-intensive sectors to higher productiv- ity, skills and knowledge-intensive sectors 9 . This transformative approach to sustainable economic growth helps promote job creation, reduces in- come inequality and poverty and enhances the overall quality and inclusivity of economic growth. This, of course, is a top priority for small island de- veloping states (SIDS) within the Caribbean, which often lack the momentum to transform their econ- omies structurally and, as a result, remain particu- larly vulnerable to developmental challenges. The Caribbean Development Bank’s working paper “A Policy Blueprint for Caribbean Economies” broadly categorizes challenges as macroeconomic, com- petitiveness and productivity, human develop- ment, and environmental 10 . Economic Transformation

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