Pathway to Paris Workshop Organized by OAS-OLADE-GE-MIT Dr. Betsy Bandy (Director) Policy, Planning, Development and Evaluation Division, Ministry of

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1 Pathway to Paris Workshop Organized by OAS-OLADE-GE-MIT Dr. Betsy Bandy (Director) Policy, Planning, Development and Evaluation Division, Ministry of Science, Energy and Technology. JAMAICA

2 Strategic Location: Center of Caribbean & Central America Gulf of Mexico Belize Central America Miami The Bahamas Jamaica Kingston U.S. East Coast Atlantic Ocean Puerto Rico (U.S.) Prime Minister: Form of Government: Judicial System: Continuity of Institutions: Hon. Andrew Holness Parliamentary Democracy English Common Law 55 Years - uninterrupted democracy since 1962 Last General Election: February 2016 Current Political Party: Parliamentary term: Jamaica Labour Party 5 years El Salvador Honduras Nicaragua Costa Rica Carribean Sea Panama / Pacific Ocean South America Population 2.73 mn (2016) Territory (Area) 10,991 km 2 GDP per Capita US$5, (2015) Panama Colombia FX Rate J$129.66/US$1 (Sept 2017) Annual Inflation (P2P) 3.8% (as Dec 2016) 6 month T-Bill Rate 5.454% (Sept 2017) Net Int l Reserves US$2.849 Bn (May 2017) Sovereign rating B3 (Moody's); B (S&P); B (Fitch) {2016} 2

3 Jamaica s intended nationally determined contribution covers actions in the energy sector (IPCC source category 1). It includes emissions of carbon dioxide, methane, nitrous oxide, nitrogen oxides, carbon monoxide, non-methane volatile organic compounds, and sulphur dioxide. The entire national territory of Jamaica is covered by the scope.

4 It is expected that there will be some continued growth in emissions, however, the implementation of the NEP will ensure that Jamaica contributes to emission reduction by undertaking the following actions: modernization of energy infrastructure; diversification of energy sources towards cleaner and renewable fuels; and incentivizing efficiency that is expected to significantly reduce emissions growth over time.

5 Using 2005 as the base year, the effect of the energy policies was modelled and compared to a BAU scenario of emissions growth without policy intervention. Under the BAU scenario, GHG emissions would increase by 37% by 2030 Jamaica s NDC will mitigate the equivalent of 1.1 million metric tons of CO 2 / year by 2030 versus the BAU scenario. Unconditional reduction of 7.8% of emissions versus BAU,. Conditionally reduction of 10% below the BAU scenario (with the provision of international support). Jamaica seeks support for the expansion of energy efficiency initiatives in the electricity and transportation sectors.

6 PARAMETER Timeframe and/or period for implementation Scope of gases included INFORMATION (with an interim target in 2025) Carbon dioxide, methane, nitrous oxide, nitrogen oxides, carbon monoxide, non-methane volatile organic compounds, sulphur dioxide Sectors covered % of national emissions covered Geographies covered Methodology for emissions accounting Contribution from market mechanisms Type of contribution Energy CO 2 : 94% N 2 O: 12% CH4: 12% NOx: 100% CO:100% NMVOCs:84% SO 2 :99% All national territory Revised 2006 IPCC Guidelines for National Greenhouse Gas Inventories None Emissions reductions versus business-as-usual baseline growth scenario (fixed) Base year 2005 Estimated emissions in base 10,572 thousand metric tons of carbon dioxide equivalent (kt CO 2 eq) year BAU methodology All categories of fuel used in the energy sector were assumed to grow at rates consistent with GDP growth rate, GDP per-capita growth rate or a compound annual growth rate calculated by best-fit regression on energy sector data from Validation was done with data from BAU emission in target year Mitigation scenario emissions in target year 2025:13,443 kt CO 2 eq 2030:14,492 kt CO 2 eq Unconditional contribution 7.8% below BAU by :12,370 kt CO 2 eq 2030: 13,368 kt CO 2 eq

7 Jamaica s NDC will result in emissions of the equivalent of 4.7 metric tons of carbon dioxide per person by 2030 versus the equivalent of 5.1 metric tons of carbon dioxide per person under the BAU scenario. Global emissions of 4.8 equivalent metric tons of carbon dioxide per person by 2030 are consistent with 1.5 C of warming. This target is more ambitious than the global goal of 2 C, and consistent with Jamaica s longstanding negotiating position.

8 National Development Plan (Vision 2030): Goal 14 Climate Change Policy Framework and Action Plan (2015) Energy Policy National Forestry Policy 2017 Watershed Policy National Transport Policy Draft National Water Sector Policy and Implementation Plan Draft Carbon Emissions Trading Policy Draft National Renewable Energy Policy Draft National Energy-From-Waste Policy ; Draft Energy Conservation and Efficiency Policy Draft Biofuels Policy Draft Comprehensive Disaster Risk Management Policy National Strategy and Action Plan on Biological Diversity in Jamaica Draft National Policy on Ocean and Coastal Zone Management Protected Areas System Master Plan Policy Guideline on Rainwater Harvesting National Building Code

9 For instances: Are there any policies promoting or discouraging coal use? Are there any policies targeting natural gas use? Are there any policies targeting electricity demand-side management? Are there any policies targeting the upgrading of inefficient power plants? Are there any policies targeting digitalization of power sector? Are there any policies targeting GHG emission reduction in non-electricity sectors?

10 Carbon Tax : introduced in early 2017 (IMF conditionality) FUNDING MECHANISMS: RE IPPs through RFP response (115 MW) Energy Efficiency Programme for government through IDB and World Bank Loans Carbon tax on all petroleum products What is the likely GDP cost of meeting NDC targets :????

11 A specific tax was applied based on the CO 2 emission per litre of the fuel type (see Table 2). Example, HFO emits of CO 2 per litre. The tax applied would be J$7.36 per litre of HFO. Tax = (0.003*7.36*litre of HFO consumed) Table 2: Emission factors and the associated Carbon Tax by fuel Type. Fuels Emission Factors Tax Rate Liquefied Natural Gas [LNG] J$0.43 Ultra-Low Sulphur Diesel [ULSD] J$1.07 [LPG] - (Butane & Propane) J$3.90 Gasoline (Unleaded) J$5.67 Automotive Diesel Oil [ADO] J$6.70 Heavy Fuel Oil (HFO) J$7.36

12 How is the institutional framework for emission reduction policies? Which government entity/entities is/are responsible for climate and alternative energy policies, and how influential are they in government decision making? Ministry of Economic Growth and Job Creation (Office of the Prime Minister): Climate Change Division Ministry of Science, Energy and Technology What other stakeholders play a role in the formation and implementation of climate and alternative energy policies, and how influential are they? Ministry of Transport and Mining Ministry of Commerce, Agriculture and Fisheries Forestry Department National Environment and Planning Agency

13 On what legal mandate(s) can the government adopt climate/alternative energy policies and measures, how robust is/are these, and what legal or judicial obstacles does relevant action face? Are there any near-term political developments, e.g. elections, that could affect the continued implementation of current or envisioned policies? Where and what are the greatest areas of challenge in meeting NDC targets in the energy, esp. electricity sector? Are there areas (improving utilization, integrating renewables) where ideas about policy innovations would be useful

14 Thanks for your attention CONTACT INFORMATION Website: Tel: Mobile: