More innovators need to step forward as T&T will seek to explore opportunities for decarbonisation.
In her address on day two of the Energy Conference, Planning and Development Minister Pennelope Beckles noted the limited number of subscribers to a programme being facilitated by the Caribbean Industrial Research Institute called Shaping the Future of Innovation.
The programme is a collaboration between Cariri, the Ministry of Planning and Development, the European Union and the Inter-American Development Bank which intends to address three critical barriers to innovation.
However, at the time of her speech, there had not been enough takers.
“I’m sharing this because I am aware that quite a number of persons are not aware of this project but it is extremely important and I hope that having shared this with you, some of you will actually submit projects in the next few days,” said the minister in her presentation.
She explained: “The project seeks to directly address three critical barriers to innovation, one, innovation financing, particularly in the private sector, two, remedying the absence of dedicated in-house talent, especially in new technologies that can support firm-level innovation; and synchronising an existing uncoordinated ecosystem comprising a wide range of actors working in silos, rendering assistance to enhance the competitiveness and output of T&T’s small to medium enterprises. “
She continued: “The final, and one of the key components of this programme is to support the development of a better coordinated Innovation Ecosystem, by building capacity amongst local innovation stakeholders to better coordinate efforts in implementing the National Innovation Policy of T&T.”
She told the audience in the previous tranches of the programme, out of a field of over 153 eligible SMEs, 15 firms were awarded grant funding totalling US$7.5 million.
She added that a second call for proposals also closed in the fourth quarter of 2022 with another round to open soon.
The Planning Minister said this programme would play a role in T&T’s National Development Strategy, Vision 2030, which also has the target of “Building Globally Competitive Businesses.”
“The instrumental goal of this theme is to facilitate a vibrant business environment and a support system leading to a diverse economy that is innovative, competitive, and sharing the foundations and supports to encourage businesses and entrepreneurs to succeed and become more competitive both locally and internationally,” Beckles said.
She stressed that developing innovation was key to the continued development of the economy, especially as T&T will have to start its navigation away from an energy economy in time.
“We note that to sustain investment beyond the innovation challenge fund, it is necessary to generate interest and appetite of the local investment community in financing innovation.
“Furthermore, an efficient process to collate and report data on key innovation indicators will allow T&T to better assess and monitor its progress in transitioning to an innovation-driven economy,” said Beckles, who reiterated that her ministry was working continuously “on framework to address climate change, ozone depletion, de-carbonisation, and renewable energy, so that T&T will be compliant with international obligations and commitments, and successfully advance the national climate change agenda.”
Beckles added that while the Ukraine war has pushed up commodity prices, it has also shown a hint at the future as the early pivots away from the reliance on fossil fuels were being developed or in some cases implemented.
“While the war in Ukraine has raised fossil fuel prices, the effect of higher energy prices on commodity prices and costs of services are already being felt globally.
“The conflict has highlighted fossil fuel vulnerabilities and catalysed investment in renewable energy, particularly in Europe, as energy security has become a stark and sobering necessity,” said Beckles.
“So, what will the end of the war mean for energy economies? Will we see a reduction in the demand for fossil fuel with increased renewable capacity? The need to diversify through innovation is one way to reduce economic dependency on the sector,” she said.
The need to diversify would serve T&T twofold, she explained, as we needed to find new economic avenues, while also protecting the country from the lasting impacts of climate change.
“T&T is in an anomalous position of being a small island developing state, yet also being a greenhouse gas emitter.
“But this also presents immense opportunities to leverage the characteristics and expertise of our industrial sector to advance the energy transition in T&T, though innovation and bold and transformative thinking,” she said, adding that the country cannot continue to its downfall.
“Combusting fossil fuels for energy has been identified scientifically as the main culprit for human-induced global warming and climate change.
“According to the IPCC, in order to be consistent with global emission pathways, global net human-generated carbon dioxide emissions need to decline by about forty-five per cent from the 2010 level by 2030, reaching net zero around 2050,” she said.
“And so, in our country, a small island developing state with an oil and gas and petrochemical-based economy, the transition to low-carbon development is an imperative, and our government is meeting that challenge by creating the legislative, policy, administrative and enabling environment to incentivise private sector investment in low-carbon technology,” she said.
Beckles said there had been innovations all over the world which suggested there could be significant progress through low-emission innovations, but much of the developing world had so far been late to that party.
“Steady technological advances offer opportunities for significant greenhouse gas abatement.
“The unit costs of several low-emission technologies have fallen continuously since 2010, and renewables are the cheapest form of power today even after the impacts of the (Ukraine war),” she said.
“There have been sustained decreases in the unit costs of solar energy by 85 per cent, wind energy by 55 per cent, and lithium-ion batteries by 85 per cent, with large increases in their deployment; for example, more than ten times for solar and more than one hundred times for electric vehicles (EVs).
“Amid climbing fossil fuel prices, investments in renewables in 2021 saved fifty-five billion US dollars in global energy generation costs in 2022. The numbers speak for themselves. However, innovation has lagged in developing countries due to weaker enabling conditions.”
Minister Beckles’ presentation came one day after Prime Minister Dr Keith Rowley outlined some of the plans, and challenges, facing the government’s goal of achieving 30 per cent use of renewable energy by the year 2030.