Country: BARBADOS Institution: THE DIVISION OF ENERGY AND TELECOMMUNICATIONS

1. IV Regional Expert Group Meeting GRULAC-UNIDOIndustrial policies to promote growth based on resource efficiency (waste and energy)Quito, Ecuador, 24 and 25 September 2012

2. Country: BARBADOS Institution: THE DIVISION OF ENERGY AND TELECOMMUNICATIONS Name of Participant: BRYAN HAYNES Position of Participant: CHIEF PROJECT ANALYST Responsibilities: COORDINATION ENERGY PLANNING AND RESEARCH Industrial energy and/ or waste management policies:

3. TABLE OF CONTENTS: Formulation of policies and regulatory frameworks Institutional management Monitoring systems Sensitization Funding Promotion of national/ local private sectors

4. Formulation of policies and regulatory frameworks (I) • Most of the policy relating to industry is currently documented within the medium term strategy for Barbados (2010-2014) which is a document that outlines policy of all the major sectors. There are also supplemental policies announced during the Budgetary Speech in Parliament annually. • The Government of Barbados is currently in the process of developing an industrial policy. • A Green Economy Scoping Study was completed this year. It is anticipated that the findings of the study will inform the drafting of the industrial policy. This study emerged form Barbados’ desire to establish a Green Economy. • Addtionally Barbados worked with the IADB to develop a National Sustainable Energy Framework to inform its policy on energy which is currently under consideration.

5. Formulation of policies and regulatory frameworks (II) • In Barbados Policy is normally formulated in a sectorwide manner where the process include all the stakeholders. • Policy is managed by the line Ministry/Department that is responsible for the sector under consideration. There may be a situation where more than one entity would have responsibility for managing particular elements of policy. • The Economic Affairs Division of the Ministry of Finance and Economic Affairs is responsible for monitoring and informing the Subcommittee on Economic Policy which is subject to the Cabinet of Barbados.

6. Formulation of policies and regulatory frameworks (III) • Policy is usually integrated at the national level via a national strategic planning process which stretches across both the public and private sectors. All government agencies are involved in the process. • The national plans are approved by the Cabinet of Barbados and may be lodge at the Parliament as a green paper for debate and later progress to a white paper to become law.

7. Formulation of policies and regulatory frameworks (IV) • Barbados is in the process of formulating its industrial policy and it will commence the process on the 10th of October 2012 with a town hall meeting withe stakeholders in the industrial sector.

8. Formulation of policies and regulatory frameworks (V) • During Presentation of the Financial Statement and Budgetary Proposals The Minister of Finance and Economic Affairs identified specific objectives to develope production RE systems • Government will provide financial assistance of BB$100 million in the form of low-interest loans over a eight (8) year period to tool and capitalize the RE and EE industry. • A zero rate of VAT will be applied to all RE and EE systems and products produced in Barbados. • Developers, manufacturers and installers of RE products will be • granted an income tax holiday of 10 years. • Interest earned by financial intermediaries (including banks, credit • unions, and Finance companies) from financing the development, • manufacturing, and installations of RE and EE products and • technologies shall be free of withholding taxes for 10 years. • Household incomes from the sales of electricity from RE sources is free of all taxes.

9. Institutional Management (I) • Barbados has a history of utilising a tripartite approach to policy development which includes government, the private sector and labour. • In terms of competences a sectorwide approach is used which would include skills in policy formulation, economics, environmental planning, natural resources management, international trade, health and safety and the environment.

10. Institutional Management (II) • Limitations in the coordination:– particularly the flow of data and information between the sectors: • Institutional/personal capacity limitations:- limited human resources in specific areas of energy efficiency and waste management. The are some human resources but those resources are stretched thin. • Financial limitations concerning adaptation and adoption of technologies: Like most other small island developing states the accessing of funds to adequately capitalise programmes is significant challenge.

11. Monitoring Systems • All government policy in Barbados is monitored by the Economic Affairs Division of the Ministry of Finance and Economic Affairs. The monitoring system tracks the status, progress, implementation benchmark and indicators, targets, financial resources, and policy initiative. Each government entity is required to report on the work relating to policy being implemented on a quarterly basis. • The reports are submitted to the Division of Economic Affairs who is responsible for communicating the progress of policy to the Cabinet of Barbados and its Committees.

12. Sensitization • Government policies and strategies are available to the public via the internet as they are posted on the websites of government agencies. • Town Hall meetings are held to discuss the policy or strategy with the general public before submitting for approval. • Policy is presented to the public via the Government Information System via television and radio.

13. Funding • Can the policy draw on resources to fund its implementation? If so, please list/describe the main resources for funding. • Funding is limited but traditionally the Government of Barbados provides resources for some aspects of policy. • In the case energy and the environment government received some assistance from the Global Environmental Facility, and IDB for example.

14. Promotion of the national/local private sector(II) • There is some technical and financial assistance support framework in place which are geared toward competitiveness and retooling. At the moment these programmes do not focus specifically on clean technologies. • The Special Technical Assistance Programme is administered by the Barbados Investment and Development Corporation. • Support is needed to improve the infrastructure for solid and liquid waste management. • Observations: There is a still the need to establish an enabling environment to promote investment.

15. Promotion of the national/local private sector(III) • Limited technical knowledge in the application of the technology. There are however a small number of companies in the industrial sector that apply cleaner production technologies and practices. • The cost of the technology is considered to be restrictive by some in the sector. • There are no financial incentives specfically geared towards cleaner production practices. • There is infrastructure for the management of solid waste but limited infrastrucutre to manage gaseous wastes. • Observations: Government have been seeking to educate the public more regarding the use of clean technologies.

16. Promotion of the national/local private sector(IV) • There are no specific incentives to encourage the use of cleaner • Technologies, environmental services, and environmental consultancy services. The Government is in the very early stages of developing a framework for establishing specific incentives.

17. Promotion of the national/local private sector(V) • There are no institutional technical and financial assistance mechanisms in place at this time to the service providers of clean production. • There is some knowledge of appropriate technologies and/or providers of such but demand is low because the cost of the technology is considered to be restrictive. • Observations:- There is opportunity for investment but the appropriate enabling environment needs to be improved.

18. Promotion of the national/local private sector (I) • In Barbados there are no specfic incentives that encourage the use of clean technology. • For instance, the Special Technical Assistance Fund provide technical assistance support to manufacturers that wish to adopt ISO standard for example is geared towards competitiveness. • Under the 1984 Income Tax Amendment, taxpayers may directly and fully deduct solar water systems from their taxes. • More recently some imported renewable energy systems and related equipment (including wind, solar photovoltaic and thermal, biomass, and hydro) free of customs duties.

19. Please, send your presentation to the following address: m.romano-blasco@unido.org Thank you for your colaboration!