Grenada

Grenada ratified the UNFCCC in 1994 and the Kyoto Protocol in 2002 (as a non-Annex I country). It submitted its first National Communication to the UNFCCC in 2000 and the preparation of a second communication has been in progress since 2006. Grenada is not bound by any international GHG emissions reduction targets, but has pledged a 20% reduction in GHG emissions from fossil fuels by 2020, as well as minimum of 20% share of renewable sources in primary energy production by 2020.

Grenada’s economy is primarily based on services and tourism, especially since the 2004 hurricane Ivan destroyed most of the nutmeg and other spices production capacity. The government’s overarching climate policy priority is adaptation to current and future climate change risks, such as rising sea levels, prolonged droughts and higher frequency of extreme events. Other priorities include the transition towards a low-carbon economy and energy security and independence.

The Ministry of Finance and Energy and the Ministry of Agriculture, Lands, Forestry, Fisheries and Environment have the primary responsibility for climate change policy, which is in general connected to environment, energy security, and disaster prevention/adaptation policies. Climate change-related legislation is primarily based on executive policy, such as strategies, policy frameworks and strategy projects, without a single overarching legislation. Grenada has prepared a National Climate Change Policy and Action Plan (draft plan 2007-2011), whose strategic objective is “to lay the foundation for an organised long term response to climate change”, in response to the relative lack of capacity to conduct climate change assessments and plan responses. The strategic objective is to be achieved through eight interdependent strategies, including climate-proofing present and future national development activities; strengthening collection and analysis of climate change data; building local capacity to assess and respond to climate change; reducing GHG emissions through increased energy efficiency and use of renewable energy; eliminating unsustainable livelihood and development practices; raising public awareness and developing climate change-related education; and strengthening international co-operation on Joint Implementation projects. The Plan further sets out specific goals to be achieved over 2007–2011 and proposes a set of specific activities, including a request for detailed sector impact assessments and initial response plans, on which the 2015 update of the Action Plan (2012-2016) is to be based.

Energy supply

The energy sector is characterised by high dependence on fossil fuels, with the electricity sector accounting for 40%, and the transport sector for around 50% of the primary energy use. Grid access is over 99%, with installed generation capacity of around 50 MW and peak demand around 30 MW (2012). Grenada imports almost 94% of its fuel for transport (diesel and gasoline), electricity generation (diesel) and cooking (liquefied petroleum gas), which makes the country vulnerable to energy price volatility. Since Hurricane Ivan in 2004, power sector infrastructure has been severely impacted and infrastructure reliability and distribution concept put into question. On the other hand, Grenada has the potential to develop renewable energy sources, especially solar, wind, and biomass (e.g. sugarcane and nutmeg production wastes). Additionally, the geothermal potential was estimated at around 1,100MW, with about 50 MW that could be reliably produced from inland locations. Some small roof-top PV installations have already been developed, covering around 1% of the peak demand.

In 2011, the government adopted in 2011 the Grenada National Energy Policy (GNEP), which institutionalises Grenada’s transition to a low-carbon, secure, and energy independent economy. The GNEP is under the auspices of the Department of Energy & Sustainable Development, within the Ministry of Finance, Planning, Economy, Energy and Co-operatives. The GNEP lays down two main targets to be achieved by 2020: a minimum of 20% reduction of GHG emissions from fossil fuel combustion below business-as-usual, and a share of a minimum of 20% renewable energy in all domestic energy used for electricity and transport. The GNEP also includes the Energy Development Strategy (2010-2020), which provides for adoption of energy specific legislation such as a Geothermal Bill and the revision of the 1994 Electricity Supply Act. The latter is to be replaced in early 2015, as the government intends to enact legislation for a new Electricity Supply Act that will promote renewables among households, hotels and other businesses. There will be a strong focus on communities’ access to renewables such as solar PV, which should among others help lower the high costs of energy, market opening for independent power producers and purchase obligation by the central utility operator

The Grenada Vision 2030 (2012) sets out an ambitious target of 100% share of renewable energy in electricity generation and transport by 2030 and calls for further studies of how such a target could best be achieved, starting with a showcase study to be conducted in co-operation with the German government and relevant companies.

Grenada benefits from a number of international financial assistance programmes, such as the Global Environment Facility (GEF). Grenada, along with other Caribbean Community and Common Market members, secured funding through the GEF for the Energy for Sustainable Development in Caribbean Buildings project. Grenada has also drawn funds from the EU Energy Facility and secured external grants for exploration of geothermal resources and the Carriacou wind energy project.

Energy demand

Grenada’s energy demand is expected to almost double by 2030 (IRENA 2012). This is why, besides provisions for transition to alternative sources of energy, the Grenada National Energy Policy also lays down measures to encourage energy efficiency and conservation, although it does not provide specific targets. It further calls for adoption of an Energy Efficiency Act, which should include provisions for energy efficiency standards (appliances, transport, buildings), regular energy audits and financial incentives to be offered by commercial banks for investments in energy efficiency.

The government provides a tax incentive (exemption of the 15% VAT) for investment in renewable energy and energy efficiency technologies. The Ministry of Finance has also published a list of energy efficient equipment, including energy saving bulbs and renewable energy technologies, which are also exempt from VAT. A draft version of Grenada’s building code (2001) offers a framework for sustainable use of buildings. It also aims at improving standards of building construction, taking into account among others the recommendations of the Caribbean Disaster Mitigation Project of the Organization of American States. However, the code has not yet been officially adopted.

REDD+ and LULUCF

Although Grenada does not have an overarching land use and management legislation, projects recognising the importance of climate change and potential climate regulative function of land use are developed in co-operation with the UNCCD (includes preparation of the National Action Programme to Elaborate the UNCCD). The recently-revised National Biodiversity Strategy and Action Plan (NBSAP, 5th report submitted in September 2014), also considers land use impacts on climate change. It incorporates the updated Aichi Biodiversity Targets, of which the following targets directly refer to climate change: Target 5 (reduce forest degradation by 50-100% by 2020); Target 10 (reduce anthropogenic pressures on vulnerable ecosystems impacted by climate change by 2015 to safeguard their function); and Target 15 (restore at least 15% of degraded ecosystems to contribute to climate change mitigation and adaptation by 2020).

Transportation

The transport sector represents around 50% of the primary energy/fossil fuel use. Although there is currently no specific policy to encourage the use of alternative fuels for the transport sector, the Grenada National Energy Policy (2011) proposes to introduce electric vehicles into the market, with the electricity grid supplied by renewable energy such as geothermal. The government, in collaboration with Grenada Electricity Services, is preparing a pilot electric vehicle programme for large vehicle fleets.

Adaptation

Grenada is especially vulnerable to climate change impacts, such as rising sea levels and increased temperatures. In response, it has developed a set of strategic adaptation programmes and projects: Grenada Strategic Programme for Climate Resilience, Grenada Disaster Vulnerability Reduction Project and Resettlement Policy Framework. Most of these documents have been prepared in co-operation with external actors providing financial means or technical support, in particular the World Bank, UNDP, UNCCD, and the German government. The adaptation measures range from coastal zones rehabilitation, and flood and landslides mitigation, to potential resettlement of inhabitants of zones at risk. In November 2014, Grenada completed its UNISDR (United Nations Office for Disaster Risk Reduction) country profile, which provides a comprehensive overview of the state of disaster risk reduction, including climate change resilience.

The integration and mainstreaming of adaptation measures into national planning takes place under the Grenada Integrated Climate Change Adaptation Strategies Project (ICCAS – funded by the German government’s International Climate Initiative). The project aims at raising awareness about climate change adaptation and aims at shifting public behaviour towards more sustainable habits. Initiatives developed under the ICCAS project include drafting of a Coastal Zone Policy and Coastal Zone Management Roadmap. The ICCAS Project has also adapted for Grenada the ‘Caribbean Climate Online Risk and Adaptation Tool’, which allows public and private sector entrepreneurs to estimate whether climate change will have a negative impact on their proposed activities, projects or policies. Finally, a National Adaptation Plan is to be prepared under the ICCAS Project in 2015.