T&T ranks among largest carbon dioxide (CO2) emitters per capita in the world. This is principally attributed to the concentration of heavy industries operating within the nation and its comparatively small population size. Nevertheless, the country’s absolute contribution to global carbon dioxide emissions remains below 0.1 per cent, much smaller than the major emitters such as the China (32 per cent), USA (12 per cent) and India (7 per cent).
In January 2025, the T&T Biennial Transparency Report, was published on the United Nations Framework Convention for Climate Change (UNFCCC) website.
This report outlines the nation’s climate change actions, progress on transparency, and commitment to sustainable development through enhanced resilience to climate impacts and the reduction of greenhouse gas (GHG) emissions across all sectors. The greenhouse gas inventory, included within the report, identifies the principal emitting sectors.
In 2022 the country produced 26,571.66 Gg of CO2. The petrochemical and energy sectors constitute the largest source of carbon dioxide emissions.
Some 87 per cent of T&T’s emissions originate from the production of ammonia, electricity, methanol, liquefied natural gas, iron and steel, and cement manufacturing.
Emissions associated with the production of T&T’s gas-based exports are facing increasing scrutiny. The European Union has initiated the implementation of new tariffs on imports of certain petrochemicals and other products, such as cement, based on the carbon emissions associated with their production. Several other major economies, including the United Kingdom, have indicated their intention to adopt similar mechanisms.
These measures, known as carbon border adjustment mechanisms, aim to address “carbon leakage” by adjusting the prices of commodities. This aims at preventing producers circumventing domestic carbon taxes in the importing market by relocating production to jurisdictions lacking carbon pricing mechanisms.
Consequently, it is imperative that proactive measures be undertaken to mitigate emissions.
Within the electricity sector, three primary strategies can be pursued. Firstly, the conversion of all existing electricity-generating assets to combined cycle technologies would enhance production efficiency by capturing and reutilising waste heat.
Secondly, the introduction of energy efficiency measures by consumers, with air conditioning being a major potential area for increased efficiency.
Thirdly, the integration of renewable energy sources into the national grid. This entails the implementation of utility-scale projects, such as the Brechin Castle initiative and other large-scale solar or wind farms, alongside the promotion of small-scale distributed generation, including rooftop solar installations.
For the petrochemical sector and other heavy industries, the utilisation of green hydrogen presents an opportunity to offset the demand for natural gas. This would involve the use of renewable energy or other carbon-neutral electricity sources for hydrogen generation from water. Traditional production methods for ammonia and methanol rely on natural gas to generate hydrogen, resulting in a significant carbon footprint.
Employing hydrogen produced from renewable energy sources would substantially reduce carbon emissions.
Another viable option for the petrochemical sector involves the adoption of carbon capture and sequestration technologies. This process entails capturing carbon dioxide emissions from industrial processes and subsequently locking them away deep underground.
It is important to set the right policy framework to encourage the acceleration of investment in this type of activity to reduce emissions but also to ensure that our energy exports can access foreign markets.
All of these issue will be discussed at the upcoming Caribbean Sustainable Energy Conference on June 2 to 4, 2025.