A Bold New Caribbean

Inclusive Economic Growth ”

Indeed, there have been concerns and setbacks in the transition from fossil fuels. However, ener- gy executives believe the net-zero transition is still happening despite these setbacks. “These are bumps in the road, but the momentum is still very strong toward the energy transition,” says Scott Mackin, managing partner at Denham Capital, a sustainable infrastructure fund based in Boston. This is encouraging since the benefits of build- ing renewable energy capacity appear to be far reaching and outweigh the obstacles. With the right policies and incentives, the transition to clean energy stands to boost economic transformation while reducing fossil fuel dependence .

Also crucial in addressing the dependence on fossil fuels is the potential of off-grid renewable energy solutions to enhance the quality of and promote inclusive economic growth. According to the Organization for Economic Cooperation and Development (OECD, 2014), inclusive growth is economic growth that is spread evenly across society and creates opportunities for all. It underscores the importance of not just growth itself but the shape and distribution of growth across a population. Furthermore, research into the impact of renewable energy on income in- equality has shown that an increase in renewable energy consumption leads to a decrease in in- come inequality 12 . For instance, renewable energy can provide additional income to landowners who host solar or wind farms (least-cost options) or for farmers who generate revenue from growing crops that produce biofuels. Providing universal, reliable, affordable renewable energy empowers the lives of many, thereby triggering econom- ic transformation and, by extension, inclusive growth. As efforts are made to rise to the challenge of powering a greener, cleaner, sustainable future, the pressing importance of renewable ener- gy technologies in the economic transforma- tion-fossil fuel dependence reduction nexus is undeniable. From the perspective of economic transformation, it is seen as the panacea for ad- dressing overriding challenges such as inequality, poverty, and stagnated economic growth and development. From the perspective of reducing fossil fuel dependency, renewable energy is seen as a strategic pathway to diversify away from vulnerable products, markets, and jobs, towards income sources that are low emission and aimed at increasing economic resilience (UNFCCC, 2018). Bridging the Gap ”

CARIBBEAN INVESMENT FORUM

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