Caribbean Investment Forum Magazine

What Impact Will The New Economy Have?

2022

irst and foremost, the new economy o ff ers tremendous potential in job creation. The transition will present opportunities for higher paying jobs and the reduction of poverty. In a joint report published in 2020 by the International Labour Organization and the Inter-Amer ican Development Bank, it was estimated that decarbonisation will lead to the net increase of jobs in the Caribbean by 3.1%, that is, the creation of approximately 400,000 jobs. Jobs are a precious commodity and, on that basis, alone we have a strong case. F There i s al so the accompanying advantage of growth. The International Renewable Energy Agency estimates that for every US dollar invested in energy transition, an additional US 93 cents of GDP growth will occur above the business-as usual scenario. Within the renewable energy industry, fi rms are emerging who can execu t e eng i nee r i ng , p r ocu r emen t , construction, operation, and maintenance services. Energy services companies are developing that can provide demand-side management services and jobs. Outside of the core activities of the renewable energy industry, engineering, construction, legal, fi nancial, logistics and transportation services will all be needed to support the development of renewable energy projects. In fact, no economic sector will be le ft untouched by energy transition. The electri fi cation of the transport sector will call for the roll out of charging infrastructure powered by renewables. A movement to a green economy will spur much needed innovation.

Most important, it will help lower production costs in a Region where energy costs are amongst the highest on the planet and a deterrent to new investments. Recognizing the enormous potential for this new economy Caribbean Export has been contributing to this transition through both technical and fi nancial assistance. More speci fi cally, we have implemented energy management capacity building interventions at the fi rm level. Since 2017, 26% of our grant funding with support from the European Union has gone to renewable energy and energy e ffi ciency projects. We are also leveraging our connections with partners and fi rms, to help develop networks of fi nanciers, technology producers and services providers. We view this as an important step in supporting the greening of businesses.

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