The Caribbean is moving decisively forward in its energy transformation. Governments in the region are reforming regulatory frameworks, promoting tax incentives, and encouraging investment in clean energy to reduce their dependence on fossil fuels and build a low-carbon energy matrix.<\/p>\n
According to Technical Note No. 12 from the Latin American and Caribbean Energy Organization (OLACDE), “Policy and Regulatory Framework for the Energy Transition in the Caribbean,” Caribbean countries have begun translating climate commitments into concrete legal and financial instruments. These policies include the expansion of renewable energy, the development of resilient electrical infrastructure, and the promotion of sustainable mobility, with particular emphasis on consumer protection and attracting private investment.<\/p>\n
Some notable examples include the following:<\/p>\n
In the Dominican Republic, Law 103-13 eliminated tax barriers to the import of hybrid and electric vehicles, boosting electric mobility and reducing the national oil bill. In Jamaica, the implementation of the strategic framework for electric mobility reduced import taxes on these vehicles from 30% to 10%, spurring their widespread adoption.<\/p>\n
Trinidad and Tobago, for its part, incorporated explicit commitments to the Paris Agreement into its legislation, and today offers tax incentives for renewable energy projects and compressed natural gas (CNG) transport. In addition, green financing mechanisms, climate bonds, and tax exemptions are being deployed to attract private capital, alongside innovation and technology transfer hubs that connect universities, industry, and governments.<\/p>\n
Despite the progress achieved, the Technical Note warns that the share of renewables in the regional electricity matrix reached only 12% in 2022, still far from the 28% projected under CARICOM’s Subregional Energy Policy. OLACDE therefore recommends accelerating the implementation of more effective regulations, removing administrative barriers, and setting measurable targets to close the gap between what is planned and what is actually achieved.<\/p>\n
The note highlights that, at the regional level, the Caribbean Community (CARICOM) is working to harmonize national standards and regulatory frameworks, while also promoting electricity interconnections that integrate renewable sources and strengthen energy security. The Regional Energy Policy, adopted in 2013, sets clear targets for diversifying the energy matrix, reducing dependence on hydrocarbons, and promoting energy efficiency and sustainable transport.<\/p>\n
The report concludes that consolidating a just and sustainable energy transition requires the design and adoption of robust legal instruments that establish economic incentives, foster public-private partnerships, and promote greater international cooperation.<\/p>\n