Investing in Saint Lucia

1. Investing in Saint Lucia The Opportunities for Green Investment

2. Role Mission: “To stimulate, facilitate, and promote investment opportunities for foreign and local investors and to promote the economic development of Saint Lucia.” • Main areas of Facilitation include: • General and sector specific information • Matching investors with sector-specific projects • Business Start-up facilitation • Identifying sites for business development (site visits) • Aftercare Client Support

3. Role • Invest St. Lucia provides facilitation services in all sectors of the economy, that include “green” initiatives, as well as emerging “green sectors” including: • Agro Processing/Manufacturing • Tourism • Green Opportunities : • Waste to Energy • Recycling • Renewable Energy generation e.g. wind, geothermal, solar thermal, bio mass • Government has indicated its commitment to support the exploitation of new and indigenous energy resources in promoting energy conservation and efficiency. This is in addition to encouraging private sector participation in renewable energy technologies that are relevant to St. Lucia*

4. Sector Challenges High costs of inputs, limited access to financing Increased competition from other countries Limited access to livestock feed, volatile livestock production Product supply shortages Business Opportunities Targeting and expansion into niche high end markets. Specialized products e.g. (rare cocoa for chocolate) Increased demand for organically grown fruits, produce and products Agro-Tourism (farm tours), to showcase the agricultural practices and the products that are produced in a eco-friendly and environmentally sustainable way . Product development and Research Institutes to develop energy efficient methods for production Agriculture / Agro Processing

5. Challenges High operating cost due to nature of oil prices Domestic consumption favors imported products Lack of technical capabilities to adjust to growing international demand in non-food and beverage sectors. Business Opportunities Production of energy from waste and other unwanted by products Large scale recycling for conversion into finished goods. Sale of recycled materials to third party consumers In the Medium term: Power Generation for electricity and heating e.g. Wind power generation, Solar thermal, geothermal, biomass etc Manufacturing

6. Challenges Affected by the loss of airlift from the US, UK markets High airfares stemming from the surge in fuel prices Competition from Caribbean and Latin American countries and other tropical countries/territories Business Opportunities Focus on Tourism Services Eco friendly, adventure, heritage and yachting Sectoral linkages – Agro-Tourism products (farm tours) Hotels/other facilities develop of their own co-generation plans located at the site of energy consumption. Any heat waste must be used for productive purposes e.g. water heating, absorption cooling Tourism

7. Green Energy • Challenges • High costs of development of the indigenous energy base • Limited resource inputs • Limited local technical capacity • Business Opportunities • Wind, biomass, solar thermal, geothermal, Waste to energy • Licensing for electricity generation • Energy services companies • Energy efficient or alternative energy in transportation sector

8. Investment Incentive Regime • Trade license Act • Aliens Licensing Act • Special Development Areas Act • The Income Tax Act • The Free Zones Act • The Tourism Development Act • The Fiscal Incentives Act

9. Incentives: an excerpt : • Investment Incentives Regime • Tax Holiday up to a maximum of 15 years • Waiver of Import Duty and Consumption Taxes on imported plant, machinery and equipment including renewable energy equipment and materials* • Waiver of Import Duty and Consumption Taxes on imported raw materials and packaging materials • Export Allowance • Unrestricted repatriation of Profits and Capital • Granting of Licenses will be subject to compliance with all applicable safety regulations including environmental standards and other physical planning requirements, environmental impact assessments etc.

10. Review • The Government of St. Lucia is eager to welcome investments that include green initiatives or generate renewable energy to aid in the sustainable national development of St. Lucia • The Incentive regime supplies investors in emerging green sectors a foundation to build successful businesses in St. Lucia • There is a high demand for green technologies and innovation from the public and private sector • Invest St. Lucia is able to provide facilitation services to investors that wish to enter green sectors in St. Lucia.