Green Economy In the Caribbean: Challenges and Opportunities

Transcription

1 Green Economy In the Caribbean: Challenges and Opportunities Regional Brief Samantha Farrell, Andrea M. Bassi KnowlEdge Srl November 2015 KnowlEdge Srl Growing winning ideas out of complexity 1

2 Copyright KnowlEdge Srl, 2015 This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided acknowledgement of the source is made. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from KnowlEdge Srl. Citation: Farrell S., Bassi A.M., Green Economy in the Caribbean: Challenges and Opportunities. KnowlEdge Srl (KE), Olgiate Olona, Italy, November Prepared by: KnowlEdge Srl 2, via San Giovanni Battista , Olgiate Olona (VA), Italy andrea.bassi@ke-srl.com Web: 2

3 Green Economy Transition in the Caribbean: Challenges and Opportunities Table of Contents 1. Introduction Climate Change in the Caribbean Renewable Energy Tourism Waste Water Waste Management Conclusions References

4 1. Introduction Caribbean states are comprised mainly of islands with the exceptions of Guyana, Suriname and Belize. The region includes 16 Caribbean Small Island Developing States (SIDS) that are on the United Nations official list of SIDS. Many Caribbean territories are faced with a multitude of socioeconomic challenges. These include: lack of economies of scale; vulnerability to natural disasters; marine and coastal degradation; strong reliance on natural resources (e.g. tourism, agriculture, forestry, fishing) and elevated costs associated with transportation and communication systems (UNEP 2008). Caribbean Green Economy Discussions on the Green Economy and The Caribbean Community (CARICOM) first began in preparation for RIO +20. This has lead to a number of countries (e.g. Jamaica, Barbados, Grenada, St. Lucia) in the region implementing national green economy initiatives. In addition to national initiatives there have also been several regional and national dialogues on the green economy by the Caribbean Natural Resources Institute (CANARI), The Caribbean Green Economy Forum and The Caribbean Green Economy Initiative. The Caribbean Green Economy Action Learning Group (GE ALG) is part of a program by CANARI to implement a program on the green economy in the Caribbean. CARICOM is leading several programs that are included in the work of the GE ALG. These include the CARICOM Investment policy initiative, the CARICOM renewable energy policy, and the Council for Trade and Economic Development (COTED). Although these initiatives may not be green they do involve policy areas where change is necessary to a transition to a green economy. Thomas (2015) notes some further existing policies that are being collaborated on throughout the region. These include: - Community Agriculture Policy - Common Fisheries Policy - Regional Energy Policy - Community Environment and Natural Resources Policy (Ongoing) - Community Industrial Policy (Draft) - Community Biotechnology Policy (Draft) - Common Water Framework (to commence) - CARICOM GE Framework (to commence) - Regional Climate Change Policy and Action Programme 1.1. Challenges to a Green Economy The Caribbean region, traditionally dependent on natural resources, now faces the problem of serious resource depletion and degradation, leading to growing economic risks. The Caribbean is one of the most indebted regions. From the list of the top 10 indebted regions in the world, three states are located in the Caribbean (Geoghegan et al 2014). There are additional pressing problems. Tourism along with other key economic sectors is experiencing declining incomes. There is the presence of increasing poverty rates, widening inequality and social instability. These social issues are exacerbated by public indebtedness that governments are struggling to contain because of the small size of national economies (Geoghegan et al. 2014). In order for there to be economic growth and job creation, governments will have to devise strategies to manage the debt. The 4

5 region also loses technical skills through outmigration. This review focuses on certain aspects of the energy, tourism, water and waste management sectors in the Caribbean. It highlights challenges faced by these sectors and opportunities in the context of a green economy. 2. Climate Change in the Caribbean Climate change is having and will continue to have an impact on the Caribbean. The Caribbean climate consists of wet and dry seasons which are increasingly becoming less defined. Data from the late 1950s to 2000 show that extreme inter-annual temperature is decreasing. In the last century the temperature of the Caribbean Sea has increased by 1.5 degrees Celsius (UNEP 2008). On the whole there is a trend of a decrease in precipitation with extended dry spells occurring over the past few decades (UNFCCC 2007a in UNEP 2008). Projections for the region put forward the case of permanent climate shocks. These shocks include: higher surface air and sea temperatures; sea level rise; extreme weather events (hurricanes and tropical storms); increased frequency and/or severity of El Nino-like conditions; increased rain intensity which can lead to more severe flooding (World Bank 2003 in UNEP 2008). Climate change, by extension, threatens to have severe impacts on the economies and livelihoods of Caribbean communities. Tourism, one of the main economic drivers in the Caribbean, is being affected by the primary and secondary impacts of climate change. The tourism industry is particular vulnerable because sea level rise will affect coastal infrastructure, damage coral reefs and contaminate water. A UNDP study projected that a sea level rise of one meter may compromise the activity at 26 out of 73 airports and 266 out of 906 tourism resorts (Taibi et al., 2014). The same study also stated that coastal erosion and acute weather events would damage 49% of Caribbean tourism lodgings (Taibi et al., 2014). Climate Change is also having an impact on agriculture, water resources and biodiversity. The changing climate will affect fresh water availability by reducing precipitation and increasing evaporation and saline intrusion from sea-level rise. This will affect agriculture, water resources and forests which in turn will negatively impact economic activity. With the chance of increased extreme events associated with precipitation, droughts and storms there will be an increased cost associated with natural disasters. The livelihood of the Caribbean s population will be affected by frequent flooding and more droughts; sea level rise and beach erosion which will add further pressure to the limited natural resources available locally (UNEP 2008). Studies on probable impacts of climate change in the Caribbean indicate that there is potential for a decline in food production and fisheries as well. Governments are being prompted to research and develop new technologies and plant varieties that can cope with the changing climate (higher temperatures and longer dry spells. 5

6 3. Renewable Energy 3.1. Context Caribbean countries, with the exception of Trinidad and Tobago, are heavily dependent on imported oil for electricity and transport. Its reliance on oil for over 90% of energy requirements has left the region exposed to oil price fluctuations (The World Bank 2015). According to the World Bank (2015) oil imports in the region, in recent years, account for up to 10% of the GDP in terms of expenditure for some countries. Oil importation also occurs in US$ and the cost of importing fossil fuels hinders economic development, as financial resources are channeled towards purchasing energy. Among others, energy conservation and diversification into renewable energy are long-term sustainable solutions for managing the impact of increasing fossil fuel prices. The Caribbean has a large economic disparity and has a total installed electricity capacity of 20 GW (IDB 2014). The Dominican Republic and Trinidad and Tobago account for one third of this capacity (IDB 2014). Access to electricity varies across the region. For instance Haiti has 15% electricity coverage and 8.6 million people without access (IDB 2014). This is one of the lowest electrification rates in the region. There are several energy challenges throughout the Caribbean. Auth et al (2013) shed light on some of these challenges that include isolated grid networks, small generation capacity, outdated equipment and lack of financial capital for improvements. There is also the provision of fossil fuel subsidies in many Caribbean countries which leads to price distortions. Whilst these subsidies are beneficial to low-income communities, they can burden national economies. The Caribbean lacks policies and incentives to promote energy efficiency and conservation Moving towards a GE Energy assessments have shown great potential for renewable energy (RE) in the region with regards to geothermal energy, biomass, hydropower, ocean energy, wind and solar. Renewables are an economic option especially for countries that depend on oil for power. According to an IDB (2014) Working Paper, renewable energy in the Caribbean has the potential to compete, in terms of cost, with all other energy options taking into consideration the high local electricity tariffs. Despite this, there has been little investment towards renewable energy in the region. Since 2006 a combined total of US $0.8 billion dollars have been received (IDB 2014) and invested. Most of this money has been given to the Dominican Republic. There is regional interest in RE but there are a number of challenges for its implementation. These include: policy and regulatory frameworks that are not appealing to investment; limited financial resources and difficulty in sourcing financing with such small economies; need for capacity building, insufficient political incentives and regulation and the fact that being relatively small the costs may be higher than in a larger country. Also the development of grid interconnectedness regulations has been slow, which is a deterrent for international investors. For renewable energy to be successful in the Caribbean there needs to be strong policies, legislation, economic incentives and regional collaboration. CARICOM is making a push towards sustainable energy including renewable energy. CARICOM is comprised of 15 member states. These are: Trinidad 6

7 and Tobago; St. Vincent and the Grenadines; Suriname; St Kitts and Nevis; Jamaica; Grenada; Dominica; The Bahamas; Montserrat; Barbados; Belize; Guyana; St. Lucia; Haiti; Antigua and Barbuda. CARICOM adopted a Regional Energy Policy in To develop the policy further the CARICOM Secretariat commissioned the first stage of the Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS) which provides guidance in moving towards sustainable energy. Some countries in the Caribbean have sanctioned targets for renewable energy technologies. These countries include Barbados (29% of consumption by 2029), Dominican Republic (10% of generation by 2015, 20% by 2025), and Jamaica 20% of capacity by 2030) (IDB 2014). Over the past decades the costs associated with alternative energy sources have been significantly reduced. In some places they have become the most cost effective option for power generation. Throughout the Caribbean there are a number of examples of renewable energy projects (wind farms, solar PV and solar water heaters) being established. For example in Barbados, households use solar water heaters. Energy efficiency is another method towards achieving sustainable energy. Using more products designed to be energy efficient such as light bulbs, air conditioners and appliances is an option. Some alternative energy options are geothermal energy, hydropower, biomass, ocean energy, solar energy, and wind power. Geothermal Energy The islands of the Lesser Antilles are known to have geothermal resources. In terms of geothermal energy, no CARICOM state has developed it. Hydropower According to Auth et al (2013), hydropower makes up the majority of renewable energy power generation in CARICOM. Guyana has plans for a large-scale hydro-power facility the 165 MW Amalia Falls. Hydro-power has the potential to develop and integrate regional energy markets especially with countries on the mainland like Guyana and Suriname. There are also opportunities for small-scale hydropower especially in remote areas where populations have limited access to electricity such as in Haiti. Of Haiti s 23% renewables, all are from hydropower, half of Surname s installed capacity is hydro and Jamaica has two percent small hydro (IDB 2014). Biomass There is the potential for biomass on the larger islands of CARICOM. Waste-to-energy has been discussed but it can be a challenge in islands with small populations and small waste generation. Guyana is the only country in the sub-region to have developed biomass resources at 0.02GW (IDB 2014). Ocean Energy Ocean energy (wave, tidal and ocean thermal energy conversion (OTEC)), has potential throughout the region. It can be used for power generation and can be used in the tourism industry for cooling. CARICOM states are currently taking steps to advance pilot projects in OTEC, although the technology s long-term potential in the region is restricted by factors including uncertain technology development and project scale (Auth et al 2013). Solar Energy 7

8 All CARICOM states have strong solar energy potential for power generation, heating, cooling. However, solar power is underused. Costs of solar energy have declined with solar PV module costs falling nearly 50% in 2011 (Auth et al 2013). Under certain conditions, this makes solar cost-competitive with fossil fuels. Several Caribbean islands have had success using solar such as Barbados with solar water heating. Wind Power There is also a strong regional potential for wind power. Various experts consider wind the most viable renewable energy technology for rapid expansion in the region over the next two decades (Auth et al 2013). Jamaica and St. Kitts & Nevis have developed wind. According to the Worldwatch Institute there are advantages to regional coordination on energy. These include (Auth et al 2013): - A common vision. - The sharing of best practices and expertise. - Leverage shared economic resources and use cost-effective energy supply by creating a regional energy market. - Bundle projects to attract finance. - Build regional supply chains. To address the problem of out of date grid storage new grid infrastructure is needed for integration of complementary renewable energy sources into transmission and distribution networks to supply reliable power (Auth et al 2013). The development of inter-country infrastructure enabling some degree of electrical integration and/or regional energy trade could be a potential game changer for CARICOM s power sector. Already some CARICOM member states use submarine interconnection cables to link individual islands and a number of preliminary studies have been conducted that confirm the feasibility and access the implications of electricity interconnection in various parts of the Caribbean (Auth et al 2013). A regional policy approach to a green economy is an important approach to sustainable energy development including aggregate purchasing, collective approaches to technology developers, collective approaches to seeking investment financing, coordinated strategies in research and development will decrease investment costs and achieve economies of scale (UNEP, UN DESA & FAO 2012). The IDB suggests that the formation of regional power markets may possibly increase the size of the electricity market which would make available economies of scale to attract investment and permit the incorporation of different generation sources Taxes can also be used as an alternative or in combination with subsidies. For example governments can provide tax relief to homeowners for the purchase of renewable energy systems as is the case with solar water heaters in Barbados. 4. Tourism 4.1. Context The Caribbean is the most tourism dependent region in the world. After the public service, tourism is the second largest employer in the Caribbean and it is a key economic driver. In some countries of the Caribbean, tourism accounts for over 80% of economic activity. This dependency on tourism has made the region vulnerable with global economic downturns. The sector provides several benefits 8

9 outside of revenue. These are job creation, linkages with other sectors and socio-cultural development. The tourism industry can take a lead in promoting green initiatives as it is dependent on natural resources. In general, there are a number of challenges that the tourism sector faces with regards to sustainability. These challenges are related to water consumption, energy consumption, waste management, effective management of cultural heritage and loss of biological diversity. In several markets there is diminished economic growth and competition from other global tourist destinations with changing consumer patterns and increased leisure and travel options. Changing consumer patterns see tourists becoming more environmentally conscious and wanting more than sun, sea and sand. Climate change is also having an indirect impact on the sector. Most tourism facilities are located in coastal areas where there is sea level rise. With seawater affecting coastal infrastructure there will be need for the diversification of the industry to expand beyond just coastal tourism. The industry s success, in part, will depend on managing the impacts of climate change. Accommodation is second to transport in terms of energy use in the tourism industry. The need for heating, cooling, lighting etc. requires energy. In some areas tourism can be a heavy if not the main factor in water use. Tourism can also affect water quality through improper discharge or water abstraction. Tourism can also negatively impact biodiversity such as coral reefs, coastal wetlands etc. This can happen through runoff from golf courses and improper waste disposal. High energy prices have direct and indirect impacts on the profitability of the tourism sector. The industry needs a supply of energy that is inexpensive and reliable. The dependency on imported fossil fuels for island nations makes by extension the tourism sector vulnerable to volatile prices. Tourism accommodations are dependent on lighting, air conditioning, cooking and water heating. The price of diesel fuel for power generation is high. It is higher than the global average. In the Caribbean, in 2012, the average price of electricity was USD 0.33/kWh compared to USD 0.26/kwh in the European Union (Taibi et al. 2014). The high price of energy is linked with tourism prices. A high price of electricity means that the industry has to raise prices of accommodation and transport. This often results in a declining demand for tourism and thus a drop in revenue Moving towards a GE Tourism is one of the world s largest growing business sectors. It grew by 90% between 1995 to 2010 (UNEP, UN DESA & FAO 2012). Tourism in SIDS is the largest earner of foreign exchange. Environmental performance, as well as the socioeconomic well-being of many SIDS are tied with the sector. Although the tourism industry in SIDS is determined by the private sector, most key attractions are public, such as beaches. The tourism industry has linkages with the energy and water sector due to its heavy energy dependency and demand for potable water for tourists and water-based tourism activities (UNEP, UN DESA & FAO 2012). For the islands of the Caribbean they import their energy supplies and have challenges facing water availability and these need to be addressed. 9

10 According to the UNEP Green Economy Report (2011) green tourism reduce energy use by 44%, reduce water consumption by 18% and cut carbon emissions by 52% compared with the business as usual scenario. Also the report states that under a green economy investment scenario, tourism makes a larger contribution to GDP growth. Investments made towards the greening of tourism can lower costs associated with energy, waste and water. It can also increase the value of cultural heritage and biodiversity. Improvements in waste management is expected to reduce costs, enhance the attractiveness of sites and create jobs. The investment in conservation and restoration is small in comparison to the value of resources such as forests and coral reefs which are draws for tourists. According to a UNEP and WTO (2012) report, Tourism in the Green Economy, tourism within the context of a green economy would contribute more to GDP growth whist adding environmental benefits such reducing water consumption (18%), reducing carbon dioxide emissions (52%) and energy use (14%) when compared to doing business as usual. Governments can leverage private investment in green tourism. Private sector investments in green tourism can be lowered if governments increased their investments in public commodities like water, conservation, waste management, sanitation, renewable energy and protected areas (UNEP & WTO 2012). Governments can also provide subsidies for the purchase of equipment/technology that would improve water efficiency, reduce waste etc. The UNEP and WTO (2012) report lists some key actions that can aid in the development of green tourism. These include: - The development of long-term national tourism development strategies and policies that would enhance socio-economic benefits that can reduce poverty and improve the environment. - The creation of properly planned designated areas for tourism. - The advancement of human capacity to enhance skills in the sector. - Attracting foreign direct investment by the public sector investing in infrastructure like roads, airports etc. In the Caribbean, CARICOM has agreed upon a Regional Energy Policy (2013). It is intended to transform the energy sectors of member states through the provision of secure and sustainable supplies of energy. To hasten the implementation of the Regional Energy Policy a Caribbean Sustainable Energy Roadmap and Strategy (C-SERMS) has been developed. C-SERMS draws attention to the tourism sector. It states that the tourism sector presents unique opportunities for rapid and significant impact because of its high energy consumption and enormous economic importance regionally (Taibi et al 2014). The Caribbean Hotel and Tourism Association has established the Caribbean Alliance for Sustainable Tourism (CAST) to focus on building technical knowledge and capacity in the sector. Furthermore, the Caribbean Hotel Energy Efficiency and Action Programme (CHENACT) was designed to help hotel owners make advancements to energyefficiency improvements and renewable energy installation. One key component of lowering costs for the tourism industry and improving profitability is addressing the high costs of energy. Most island resorts and hotels 10

11 still heavily depend on expensive diesel based electricity. In the Caribbean the main drivers of energy consumption in accommodations are air conditioning (48%), lighting (11.5%), refrigeration (10.6%), guest room equipment (7.4%) and pool pumps (7.4%) (Taibi et al 2014). Of course energy consumption varies depending on the size and location of the hotel. In small hotels water heating accounts for a major chunk of energy consumption. The use of renewable energy is an alternative. There are four types of alternative energy systems that can be used in the hotel industry for power generation. These are referred to as renewable energy technologies (RETs) and include solar water heating (SWH) systems, Solar Air Conditioning (SAC), seawater air conditioning (SWAC) and solar photovoltaic systems (PV). SWH uses solar heat, to warm domestic water. This can be an alternative to electric water heaters. SAC systems use solar heat to for cooling and chilling. SWAC use cold water from the ocean depths to supply air conditioning in tourism facilities. Both SAC and SWAC are alternative to electric chillers. Solar PV use energy from the sun to provide electricity. It also is an alternative to diesel-generated electricity. Hotels are increasing investments in RETs which are cost competitive on many islands. Islands can benefit from using RETs by lessening the effects of pollution from fossil fuels (air and water) and through the creation of employment opportunities that are needed for the installation, operation and maintenance of RETs (Taibi et al 2014). However investment in RETs are not at their potential. According to Taibi et al. (2014) there are three key barriers to RET deployment in the tourism sector. These are related to: - The competitiveness of Renewable Energy options (technical and economic barriers). - Access to capital and cost of financing ownership of financial barriers. - Institutional and technical capability and knowledge gaps. For the places with high and volatile electricity prices, RETs can provide stable operating costs which would help their business model (Taibi et al 2014). SWH systems offset or replace the cost of electric water heaters, SAC and SWAC systems lower or eliminate diesel-based heating and cooling services and PV systems reduce of eliminate the cost of electricity from national utilities of on site generation. In addition RETs provide stable power generation costs that increase resilience and reduce vulnerability of island economies (Taibi et al 2014). RETs improve branding by appealing to consumers that are more environmentally conscious. There are four main policy tools that can be used to facilitate the introduction and overcome the barriers to RETs. These are capital investments, public targets; institutional and technical capacity building and incentives such as tax reductions (Taibi et al 2014). Examples of RETs in the Caribbean exist. There is SWH in Barbados, wind farms in Aruba and a PV system announced for the Dominican Republic. Island hotels are showing greater interest in the use of RETs. According to Taibi et al (2014) solar PV, SWAC and SAC systems in islands range from between USD 0.04 and 0.26/kWH. The average cost of initial investment is dependent on various factors such as how much of the resource is available, type of materials used and the distance of the technology producers from the island (Taibi et al 2014). 11

12 In SWH systems, water is heated by the use of solar heat. This offsets the cost of electric and gas water heaters. For hotels located in places with steady sunshine, the SWH would be cost-effective. The payback period for hotels on islands is estimated to be one year (Taibi et al 2014). The high electricity tariffs when using diesel generators partly accounts for the cost effectiveness of SWH. Table 1: Analysis of RE options in the tourism sector (Taibi et al., 2014) System SAC SWAC Solar PV Payback Timeframe - 5 to 10 years depending on type of technology and hotel s annual energy consumption. -5 to 6 years at sites close to the sea and with A.C. in high demand. -9 to 17 years with sites with a small A.C. load. -Payback depends on electricity cost, technology and solar radiation. Benefits/Description -Offsets the cost of diesel generated heating and cooling. -SAC systems commercially available -System can operate at night and on cloudy days. -Domestic hot water can be provided by using waste heat from cooling circuit. -Has the potential to meet up to 90% of the cooling load with an associated reduction in a hotel s electricity bill. -Can be financed by having investors purchase as a group and install the systems. -Can offset the cost associated with buying electricity from the power company. -On islands with a netmetering policy hotels can offset their electricity bill by 100 percent. -For islands that prohibit private users to feed electricity back into the grid to can offset 10-20% of the electricity bill, Investments in RETs can lead to cost savings. With increasing use of renewable energy costs can be cut by reducing the amount of fossil fuels purchased and by avoiding future costs associated with environmental degradation (Taibi et al 2014). There are three main obstacles for renewable energy on islands. These are, according to Taibi et al (2014), the technical and economic competitiveness of renewable energy options, institutional and technical policy and capacity and access to capital. Taibi et al highlight four policy instruments that can be used by island governments to overcome the barriers and for the purchasing of RETs. These are related to capital investment, public targets mandated by law, incentives and disincentives (e.g. tax rebates) and institutional and technical capacity building. Taibi et al (2014) suggest best practices to overcome barriers. These are: - Net-metering policies and variableaccelerated depreciation, to address the competitiveness of RET options. - Leasing schemes and low interest loans for the purchase of RETs to provide a solution to access to capital and the cost of financing. - Power Purchase Agreements to tackle technical capacity gaps, access to capital and cost of financing. - Awareness raising and training programs to fill institutional and technical capacity gaps. For greening of tourism there needs to be destination planning and coordinating amongst the relevant ministries. These ministries include those associated with the environment, agriculture, labor, transport, finance. Government policies and investments can encourage investments by the private sector. This is as government spending on public goods and service 12

13 such as water conservation, renewable energy, sanitation can reduce the cost of green investments for the private sector in green tourism (UNEP, 2011). Subsidies and tax concessions formulated by governments can also promote private investment in tourism. Subsidies can be given to purchase technology promotes energy and water efficiency, reduces waste etc. Also conservation by payments for environmental services. At some point energy use and resource use need to be priced to reflect their real cost to the society. Investing in sustainable tourism has benefits. The UNEP (2011) report outlines some of these benefits. In terms of energy, hotels and other accommodations can invest in energy efficiency and services. This would include investments in air conditioning, refrigeration and laundry. Increased energy efficiency for tourism translates into a reduction in operational costs along with customer satisfaction. It is thought that investment in energy efficiency can generate significant returns. In terms of water, water efficiency and investment in water saving technologies in facilities can reduce costs. Also in terms of water consumption, irrigation reductions can be achieved through alternative gardening by selecting different plant species on hotel compounds as well as the use of grey water. Golf courses can be designed to use less water. Water consumption can also be reduced by investments in grey water reuse, water-saving systems, rainwater collection and management systems. Many of the Caribbean countries have made heavy investments into their tourism sectors. These sectors need regional cooperation and product enhancement with strategies to broaden their market. 5. Waste Water 5.1. Context The Caribbean faces many challenges with water availability. According to (UNEP, UN DESA & FAO 2012) water availability is affected by seasonal rainfall, deforestation, conflicting land use within water sheds, demands by rapid population growth and economic sectors, inefficient distribution sectors and soil erosion which reduces absorption. The past few years have seen Caribbean states suffer from inadequate water supplies caused by drought conditions. Governments throughout the region have had to impose water restriction measures. The freshwater that is available in Caribbean SIDS is significantly less than in oceanic islands. Many Caribbean islands depend heavily on a single source of water such as rainwater, surface reservoirs, groundwater, rivers and other surface flows and imports (UNEP 2008). According to UNEP (2008), by observing present population levels, water availability in some Caribbean SIDS is considerably lower than the international limit of 1000m3 per capita per year (UNEP 2008). Below this figure a country is classified as water scarce (UNEP 2008). This limit puts three territories in the category of water-scarce countries. These are Barbados (301 m3 per capita), St. Kitts and Nevis (621 m3 per capita) and Antigua and Barbuda (800 m3 per capita) (UNEP 2005 in UNEP 2008). Recent modeling done on several small Caribbean islands of current and future water resources showed that these islands would face severe water stress under all SRES scenarios (UNFCCC 2007a in UNEP 2008). Water loss, 13

14 contamination, population growth and increased usage have increased water shortages. These shortages are of concern to the public and industry. A challenge that the region faces is proper management of wastewater. Sources of land-based pollution from agriculture, industry and municipalities undermine the quality of life and economic development in the region. Research is showing that public health and biodiversity are threatened by untreated sewage. This sewage is from poorly planned development, population growth and inadequate sewage treatment facilities. According to the Caribbean Regional Fund for Wastewater Management, 85% of wastewater entering the Caribbean sea is untreated; no more than 17% of households are connected to suitable collection and treatment systems and 51.5% of households lack sewer connections. The Caribbean Regional Fund for Wastewater Management says that studies have shown that roughly 80% of living Caribbean corals have been vanished over the past 20 years due to sewage. The tourism and fishing industries have also negatively been affected by sewage. Obstacles to proper waste disposal are inadequate policy and legal framework, scarce financing and low priority placed on wastewater treatment. The Caribbean Regional Fund for Wastewater Management highlights that the development of wastewater infrastructure in the region is affected by: - low priority given to the development of wastewater - capacity constraints of many utilities and other service providers - a lack of sufficient and stable long-term funding for utilities - inadequate and poorly enforced policies and laws - poor communication and collaboration amongst involved agencies - limited awareness, knowledge and understanding of alternative and appropriate treatment technologies - limitations in technical capacity for environmental management 5.2. Moving towards a GE A major issue facing small island developing states including the Caribbean region is the degradation and scarcity of freshwater resources. In 1999 recognizing the problem of sewage governments in the Caribbean agreed to the Protocol on the Control of Land Based Sources of Marine Pollution (LBS Protocol). The LBS Protocol forms part of the only legally binding regional agreement for the protection and development of the Caribbean Sea- the Cartegena Convention. One means to address water scarcity is by targeting anthropogenic degradation and the loss of freshwater resources by using technical measures. The UNEP (2014) report: Emerging issues for Small Island Developing States. Results of the UNEP Foresight Process lists several measures that can be taken to combat this. These include: - Increasing the availability and efficiency of waste water treatment facilities - reducing chemical contamination from agricultural chemicals by controlling their use - encouraging the reuse and recycling of wastewater - reducing deforestation 14

15 - reducing losses from storage and delivery systems through regular maintenance and discouraging over-abstraction - another measure for increasing water availability is rainwater harvesting - as an alternative to costly wastewater treatment facilities SIDS can consider low-cost options such as artificial wetlands (e.g. implemented in some islands St. Lucia through the integrated Watershed and Coastal Areas Management Project) - reducing losses from storage and delivery systems through regular maintenance and discouraging over-abstraction. Rainwater harvesting Rainwater harvesting is a low-cost method of capturing water during the dry season in the Caribbean. It can also be used in times where the water supply has become polluted such as after natural disaster events. It can be used for domestic, commercial and agricultural purposes and in the context of climate change. Cisterns and tanks attached to buildings can be used to capture the water. Two main disadvantages to this method are that tanks may not be big enough and rainwater harvesting is dependent on rainfall. An example of rainwater harvesting is in Ghana. In terms of water collection, Ghana has come up with a strategy. They have a system where collection is done by a storage tank to their roofs. These storage tanks come in various sizes depending on precipitation conditions. This collection provides water for various circumstances but needs to be purified before drinking. There is a second system which has a pump, filtration and distribution unit (Science Daily 2015). This can be used with chlorination to provide potable water. The most advanced system contains a UV disinfection system and a filter. This allows water to be drunk straight from the tap. Waste water reuse A UNEP study identified weakness to the promotion of waste waster reuse. Amongst these are the factors of not having financing and the need for policies and regulations that promote reuse. At the Caribbean Water and Wastewater Association s 23 rd Annual CWWA Conference and Exhibition in 2014, principal potential factors were highlighted for the development of a wastewater management policy. This Action plan listed as a guide; wastewater as a resource; diversity of wastewater reuse; awareness and education; improving infrastructure; regulatory enforcement mechanisms; utilization of partners and networks; minimizing health risks; wastewater quality standards; capacity and capabilities building; technology advancement; revenue stream from wastewater; coordination/collaboration; technology advancement and enhance the capacity of R&D and a cross-sectional approach to wastewater. Wastewater can be made into a resource. Caribbean countries are becoming more vulnerable to water scarcity that is being exacerbated by climate change. The potential for using renewable wastewater is being discussed. There are several benefits of wastewater which include: wastewater containing water and nutrients that can be used in agriculture; the generation of methane (clean energy from it) during the processing of wastewater (Corbin et al 2014). In terns of infrastructure, there is a need for wastewater collection infrastructure which would consist of pump stations, force mains and sewers (Corbin et al 2014). Wastewater can be a reliable source of water for 15

16 irrigation, in water scarce areas, in the tourism industry, for drinking and population increase. In these cases there need to be methods to ensure that the water is not contaminated. Wastewater in the Caribbean is mainly in small-scale pilot projects. A contributing factor to its limited use is public concern. There however, is potential to use wastewater for irrigation. For wastewater to be advanced there needs to be training on the issue; collaboration amongst all the parties involved in using wastewater such as health, agriculture, fishing etc; a cross-sectional approach to wastewater that includes, outside of health, other economic sectors such as agriculture, housing tourism etc in the planning; farmer awareness programs; strong formulation and enforcement of legislation and regulation on wastewater and studies done on wastewater and technology advancement. Governments should look for financing for wastewater projects. Watershed interventions can include: reforestation, improved waste water treatment, restricted fertilizer and pesticide application practices, installation of storm water filtering devices, improves building practices to prevent erosion (UNEP, UN DESA & FAO 2012). Other downstream improvements to sewerage and water supply and alternative water supply development can include, ground water recharge and desalination. Ground water recharge allows the safe-collection and transmission of rainwater into the underlying aquifer (UNEP, UN DESA & FAO 2012). This is suitable in areas that depend on shallow rain-fed water supplies. Groundwater recharge is used in Trinidad and Barbados. Desalination is the last resort option because of its high costs for investment and operation. The (UNEP, UN DESA & FAO 2012 report suggests enabling conditions to deal with addressing water concerns. These are related to: -policy: policy formulated to address water resource management within the context of national economic development -Legislative and regulatory reform: introducing progressive billing which has shown to reduce water consumption as low volume users pay a reduced fee up to a certain level after which the tariff increases. -sustainable financing: through a combination of public and private financing for green economy initiatives -capacity building and sharing: to reorganize agencies/ministries and promoting community involvement in water management.. 6. Waste Management 6.1. Context Around 70% of the population in the Caribbean lives in coastal communities. These coastal regions, are polluted by chemical run-off from agriculture, wastes from the transportation sector, industrial effluents and solid waste sewage (UNEP 2008). Despite this, there is limited investment in waste management systems. The World Bank defines municipal solid waste as including non-hazardous waste generated in households, commercial and business establishments, institutions, and non-hazardous industrial process 16

17 wastes, agricultural wastes and sludge. In practice, specific definitions vary across jurisdictions. A recent article Which countries produce the most waste by Paul Muggeridge highlights the top producers of municipal solid waste (MSW) per day. Figures for 2012, the latest year for which there is data, show how much each urban dweller produces per country. Several of the top waste producers are small island nations including those found in the Caribbean. Trinidad and Tobago (14.40 kg/capita/day), St Lucia (4.35kg), Guyana (5.33kg), Antigua and Barbuda (5.5kg), St Kitts and Nevis (5.45kg) and Barbados (4.75kg) made the list. The worldwide average is 1.2kg. In terms of policy importance, waste management is one of the least acknowledged public policy topics addressed in the Caribbean. Social and economic issues that are deemed more pressing such as unemployment and the economy are given more precedence than waste. Despite its low priority, waste management is important to Caribbean states. This is the especially as these economies heavily depend on tourism and natural resources (fishing, agriculture), which can be negatively affected by improper waste disposal. Since the Caribbean is mainly composed of small island developing states (SIDS), waste can have extensive negative effects especially as there is a lack of proper integrated waste management systems. The problems associated with improper waste disposal are extended to degradation of coastal and marine resources (coral reefs, fisheries, wetlands), pollution of surface and groundwater, limited land space for waste disposal facilities and institutional capacity to manage waste disposal (Phillips and Thorne date 2013). There are several challenges that the Caribbean faces in terms of sold waste management. Recent statistics on waste in many states are not easily available. However, it was estimated that in 2005, there was between 27,000 to 945,000 metrics tons of solid waste generation in the Caribbean. (Binger 2011 in Phillips and Thorne 2013). Rates for daily per capita waste generation ranged from 0.7kg to 2.8kg (Binger 2011 in Phillips and Thorne date 2013). Also, it was reported at a 2008 Coastal Cleanup Conference that a total of 6,781,537 items of garbage was gathered from Caribbean coastal areas. Of this, 90% were attributed to land-based sources (Al Binger 2011 in Phillips and Thorne 2013). Limited space, human capacity, access to financial resources, high public debt, weak governance, weak institutions and the unavailability of scale efficient technologies are all obstacles to instituting proper waste management in the Caribbean. These affect implementation and monitoring. In the Caribbean, landfills are the most widely used form of waste disposal. However cost and scarcity of land are obstacles. Landfills near coasts can result in leaching into beaches, reefs, and tourism facilities. The unavailability of scale-efficient technologies for municipal waste management is also a constraint. According to Phillips and Thorne (2013), scale efficiency in waste collection technologies is usually not achieved due high per capita collection costs resulting from fuel and labor. Lack of alternative technologies have also prevented the implementation of other methods of waste-management such as composting, waste-to-energy, incineration and waste recycling (Phillips and Thorne date 2013). This is due to the inability of small populations to generate the 17

18 volume of waste necessary to make it feasible for such technologies. Outside of the waste generation per capita there is that generated by tourists. It has been proclaimed that stop-over tourists generate at least twice the amount of waste as locals (Phillips and Thorne 2013). Squires (2006) outlined the chief institutional challenges for several Caribbean countries during the period : - Poorly located dumps around the country. - Uncontrolled scavenging - Regulator burning - Inadequate management and maintenance of solid waste systems - Weak legal and regulatory frameworks and inadequate institutional capacity - Inappropriate, inadequate vehicular equipment - Inadequate management of hazardous waste - Low public education and limited awareness of solid waste management issues - Inadequately serviced populations (Phillips and Thorne 2013). Despite these concerns, solid waste management has been making small strides in some Caribbean states. Outside funding for improvements to waste management infrastructure and legal and regulatory frameworks has been sourced by Barbados, Jamaica and the Bahamas (Phillips and Thorne 2013). Solid waste management has been developed in St. Kitts, Dominica and St. Lucia (Phillips and Thorne 2013). Several countries have consented to the Caribbean Environmental Health Institute (CEHI) to monitor the environmental frameworks for landfill operations (Phillips and Thorne 2013). There has been the utilization of tipping fees for waste disposal. In Barbados a fee of US $20 per ton is in place on waste disposed in landfills (UNEP 2011 in Phillips and Thorne 2013). Several OECS countries have applied tipping fees ranging from US $40 to US $108 per ton for marine waste and between US $1.90 and US $20.75 per ton for other types of waste (Phillips and Thorne 2013). There has been some hesitation to executing these fees because of the odds of illegal dumping of solid waste (Phillips and Thorne 2013). A properly functioning municipal solid waste management system involves the collection, transportation, processing and disposal of waste. There are examples of recycling projects across the Caribbean. However, it is not widespread or properly developed. Despite this, over the past ten years, scrap metals from landfills have been recovered for trade. This has been a consequence of a trend of increasing global prices in virgin metals (Phillips and Thorne 2013). Low volumes of recyclable materials such as paper, plastics and glass are part of the reason for recycling being on a small-scale. According to the Caribbean Environmental Health Institute one main limitation to the development of a recycling industry is the lack of a market (Phillips and Thorne 2013). Landfills are the most widely used disposal method in the Caribbean. They can cater for the varying population sizes throughout the Caribbean. Ina benefit-cost analysis landfills are the only method agreed upon. Waste management can create direct economic benefits. Municipal waste management activities use local government agencies to retain workers to carry 18

19 out operations. The municipal waste management system can be improved. There are several benefits to proper waste disposal and management. The benefits listed by ISWA (2013) are summarized in the table below: ECONOMIC SOCIAL ENVIRONMENTAL -Economic savings/gains through waste prevention measures. -Value obtained from waste in form of secondary material.energy. -Resource security and availability of less costly substitute materials for production through recycling. Less costs associated with residual waste management. Greater availability and value of land. -Reduced medical costs through improved health and safety. -Job creation/less unemployment. -Poverty alleviation. -Improved employment conditions. -Improved public amenity. -Public engagement/ participation. -Resource efficiency. -Conservation of natural resources and raw materials and fossil fuels energy. -Environmental protection saved environmental costs and flooding, water quality, air quality, land, biodiversity and ecosystem services. -Climate benefits through reduced GHG emissions Moving towards a GE Several methods can be employed for solid waste management. These include composting and recycling. In terms of composting, this method is suitable for waste that is high in organic matter which is the case in developing countries. Composting allows for the biodegradation of organic waste which creates soil-enhancing material which is usable in agriculture (Phillips and Thorne 2013). Basic composting facilities are inexpensive to develop, however centralized facilities have high operating costs combined with low demand for compost (Phillips and Thorne 2013). This is one reason why these types of facilities are unsuccessful in boroughs in developing countries. There can be the implementation of an integrated solid waste management system. Integrated approaches use waste-minimization strategies that are supported by vigorous collection, transportation, processing, and monitoring disposal systems (Phillips and Thorne 2013). An integrated approach should be supported by a widespread public-awareness program. National composting should be promoted. Especially as a lot of the waste in the Caribbean is organic. Composting would reduce waste. A composting scheme would be especially beneficial is it is developed on a domestic and national level to reduce the amount of organic waste reaching landfills. This can be done through composting programs on a community and national level. It will be especially useful as land for landfills is limited on many Caribbean islands. Greening of the waste sector also refers to a shift to the 3 R s: Reduce, Recycle, Reuse. Recycling is a strategy for waste reduction. Recyclable materials include paper, plastics, glass and metals. Recycling can be used as a strategy for waste-minimization, which is currently promoted throughout the Caribbean. Studies show that there is potential for the development of recycling. However, there are the obstacles of the limited scale of operation, absence of a policy framework that facilitates it and market volatility (Phillips and Thorne 2013). A Caribbean trade in recyclables would increase the volume of materials for an industry to develop. Phillips and Thorne (2013) suggest that policy 19