Barbados

Barbados existing National Strategic Plan 2006-2025 sets out policies and proposals to transform the country into the most environmentally advanced green country in Latin America and the Caribbean, according to a presentation speech given by the Prime Minister. One of the plans six goals is to build a green economy through promoting and facilitating the sustainable use of renewable resources, improved management of non-renewable natural resources, maintaining a safe and reliable water supply, ensuring an efficient energy sector, and developing an efficient land use policy. The plan has subsequently been backed up by Barbados National Energy Policy 2019-2030 which aims to transform the island to 100% renewable energy and carbon-neutrality by 2030. It enlists specific objectives and measures spanning a number of sectors including electricity, transport, agriculture, tourism, construction and international trade, among others. However, greater clarity could be provided regarding the carbon-neutrality commitment, both in terms of whether it encompasses economy-wide emissions and setting out a concrete timeline of steps to meet it. There could also be greater ambition regarding fiscal and monetary policy, such as plans to adopt pricing mechanisms.

While formal national policy consultations are not in place, Barbados has its Social Partnership, a tripartite governance mechanism (comprising representatives of government, labour and the private sector) which provides a platform for consultation and dialogue on policy. For example, during government calls for Annual National Consultation exercises, members of the partnership engage in policy assessment exercises. However, these calls do not form a mandatory part of policy development. There is some specific legislation which has consultation processes embedded within it, such as the Sexual Offences Act 2016, Employment Right Act 2012, Employment of Women Act, and the National Employment Policy 2014. There is no evidence of any coorporate guidance on employee consultation processes.

The government provides guidelines on sustainable development to the private sector, as well as financial incentives to encourage firms to use renewable energy but support for business engagement with the SDGs is generally limited.

There is no evidence of wealth accounting. Barbados submits to the International Public Sector Account Standards.

No engagement with proposals for green financial reform at present. However, the government is aware of the importance of financial sector support for sustainable development, with the National Strategic Plan stating the need to pursue policies of monetary and finanical integration that do not compromise the future wellbeing of Barbadians. Despite the lack of green finance plan, Barbados has signed a preliminary agreement with Guyana and the Green Climate Fund to set up a regional Green Investment Bank.

The government has not established any processes to undertake an environmental sustainability review of fiscal or monetary policy. However, it is highly constrained by a lack of fiscal space, and has attempted to seek debt relief specifically to create space for green spending. In 2018, Barbados commenced a major 4-year programme of fiscal adjustment and reform (supported by the IMFs Extended Fund Facility) to bring its 158% debt-to-GDP ratio back under control and restore macroeconomic stability. A year later, with debt-to-GDP at 125%, the country began negotiations on a maritime Debt-For-Nature swap with The Nature Conservancy, but the arrival of the pandemic led to the rebound in debt back to 2018 levels and the swap was declined due to debt trading too high.

The Central Bank of Barbados conducts annual financial stress tests on the financial sector. The tests focus primarily on credit risk, as well as interest rate and liquidity shocks. The Financial Services Commision also carries out tests specific to the insurance industry and there are signs of further positive developments, with plans to develop a system of annual stress testing of insurance firms of their capacity to absorb natural and man-made disasters as part of Barbados Comprehensive Disaster Management Country Work Program 2019-2023.

There are no tax or trading schemes in place in Barbados for pricing carbon. Barbados claims it plans to eliminate fossil fuel use entirely, both domestically and internationally, under the carbon-neutrality goal of its National Energy Policy but its unclear whether this encompasses economy-wide emissions.

In 2014 the Government of Barbados, in partnership with UNEP, commissioned a Green Economy Scoping Study focusing on five of its most important sectors (agriculture, fisheries, the built environment, transport and tourism). The study considered the steps necessary for those sectors to transition towards a greener economy and the resulting net benefits.

Subsequently Barbados released a number of strategies relating to these sectors, including a National Energy Policy 2019-2030 which sets out steps towards meeting Barbados' goal of reaching carbon neutrality by 2030. However, while the goal and plan covers the country's power and transport sectors (which dominate energy demand), it excludes the commerce, household and manufacturing sectors. Other policy plans include a Sustainable Urban Mobility Plan and the 2021 Physical Development Plan which provides the framework for government policy and emphasises green planning decision-making, the shift away from car-centric mobility, sustainable agriculture and green tourism. Barbados Integrated Coastal Zone Management Plan 2020-2030 forms an overaching strategy for sustainably managing competing economic interests and limited natural resources in the marine environment. Taken together, the plans cover Barbados key economic sectors, but they lack integration and there is room for greater clarity on implementation.

Barbados Small Business Development Act 1999 and National Policy Framework for the Development of MSMEs both provide the regulatory framework for support to small businesses but this is not targeted towards green businesses or social enterprises. The Green Business Barbados certificate programme developed in partnership with the Barbados Ministry of Environment, UNDP and American Development Bank and launched in 2010 is the main targeted scheme which provides training opportunities and support for small businesses to adopt eco-friendly, cost-efficient, and sustainable management practices and operating models. The scheme is recognised as a key private sector vehicle for Barbados transition to a green economy.

No carbon budget proposals under discussion. Barbados claims it plans to eliminate fossil fuel use entirely, both domestically and internationally, under the carbon-neutrality goal of its National Energy Policy. However, its unclear whether this encompasses economy-wide emissions or simply electricity generation, and a comprehensive plan and budget strategy for the reductions is outstanding.

Barbados is a small island state with limited natural resources which has led to an almost total dependence on imported oil products (comprising more than 90% of total primary energy supply) to meet energy demands. But exposure to fluctuating oil markets, foreign currency and the insecurity of supply has led the government to opt to move away from oil. In its National Energy Policy 2019-2030 Barbados commited to an economy-wide target of reaching 100% renewable energy electricity generation by 2030, decarbonising its power and transport sectors. While these sectors dominate Barbados energy demand, the goal excludes the commerce, household and manufacturing sectors - ollowing for continued hydrocarbons exports.

From the Prime Ministers March 2020 Budget Speech its clear that the government is actively taking steps to expand solar and wind energy generation and incentivise the purchase of EVs, however a credible long term implementation plan still appears to be lacking. Barbados National Energy Policy reads as a series of broad goals and objectives, while the Integrated Resource and Resiliency Plan analyses a series of energy supply options and provides recommendations. Its clear that a detailed plan which includes consideration of centrally managed, collective financial investment vehicles will be necessary to overcome the lack of local finance for renewables developments and meet the governments commitment to supporting Barbadians to participate up to the level of at least 30% in every major energy investment project.

While there is some recognition of the importance of green jobs in planning and the Human Resources Development Strategy supports the creation of green jobs through specialized education and training in integrated waste management, coastal preservation, water supply management, environmental economics, and related areas, no specific actions or programmes are proposed. There are some isolated support schemes which contain minor green elements, such as the Ministry of Youths Development Programme which includes training in solar PV installation and a clean-tech cluster programme Bloom (funded by the Global Environment Facility) which provides accessible and flexible finance to support sustainable energy technology companies and entrepreneurs.

In general there is limited integration of social and environmental policy evident at the strategic and planning levels. For example, while the National Strategic Plan 2006-2025 recognises the need to support the poorest rural communities by providing opportunities for the development of sustainable agriculture it does not propose or establish any specific policies.

Nevertheless, Barbados is still undertaking some innovative pro-poor projects a primary example being its Roof to Reefs resilience programme (R2RP) which is designed to enhance the ability of low and middle-income families to overcome climate extremities and natural disasters. The programme aims to finance upgrades and improvements to low and middle-income homes to ensure they are resilient to extreme weather events (e.g upgrading water storage and rainwater harvesting, making critical utilities climate resilient, providing roof fortification and retrofitting on homes aimed at withstanding Category 4 hurricanes). It acknowledges the need for locally-led adaptation which addresses structural inequities faced by women, young people and those most socially and economically disadvantaged and seeks to establish a sufficient and stable funding mechanism to enable finance to be accessed by local communties when and where genuine need arises.

Barbados has a proud history of social partnership consultation mechanisms that are more advanced than other Caribbean countries, but its impact procedures are lacking. The subcommittee of the Social Partnership, a tripartite governance mechanism, comprises the Government, Employers Representatives, and Workers Representatives, which provides the main framework on policy consultation matters. During the formulation of policies (such as the National Sustainable Development Policy or the National Strategic Plan 2006-2025) the government calls for Annual National Consultation policy assessment exercises. Official calls for these are published on the Government Information Service website. However, these exercises are not mandatory.

Barbados innovative Roof to Reefs resilience programme (R2RP) is designed to enhance the ability of low and middle-income families to overcome climate extremities and natural disasters. The programme aims to make significant upgrades and improvements to low and middle-income homes to ensure they are resilient to extreme weather events (e.g upgrading water storage and rainwater harvesting, making critical utilities climate resilient, providing roof fortification and retrofitting on homes aimed at withstanding Category 4 hurricanes). It also acknowledges the need for locally-led adaptation which addresses structural inequities faced by women, young people and those socially and economically disadvantaged and seeks to establish a sufficient and stable funding mechanism to enable finance to be accessed when and where genuine need arises. Barbados has received readiness support from the Green Climate Fund for R2RP development and is establishing a framework to mobilise ongoing public and private investment. Although this is an isolated programme, it is particularly impressive - setting an overarching framework which takes an integrated approach to addressing climate, nature and social challenges, drawing on and operationalising Barbados 2021 Physical Development Plan, and at the same time adopting a structure which allows flexibility for projects to be prepared at the sector-level and driven by local priorities.

As the tourism industry accounts for over 40% of employment and GDP in Barbados, the country has in place several pieces of legislation to ensure the protection of water resources, the maritime environment and its coastal zone. Under the Ministry of Maritime Affairs and Blue Economy, the Coastal Zone Management Unit (CZMU) have designated a newly defined Coastal Zone Management Area and developed an Integrated Coastal Zone Management Plan 2020-2030 which has been approved by Cabinet. A supporting Policy Framework 2020-2030 aims to build capacity within developmental planning decision-making through the provision of supporting guidelines, principles, and tools on what constitutes sustainable and resilient coastal activities. While comprehensive in terms of setting out goals, suggested actions and performance indicators, the approach to national implementation and enforcement of the ICZMP remains unclear and under development with plans to draw up a national procedural guidance document. Elsewhere, there is room for greater ambition on SDG 15, with no strategy specifically focused on terrestrial ecosystems. Barbados Physical Development Plan 2021 sets out the countrys conservation priorities largely implemented through managing designated National Parks and Natural Heritage Conservation Areas.

There have been some limited discussion of the development of natural capital accounts in Barbados, but no initial steps underway. In 2016, the Inter-American Development Bank (IDB) collaborated with the Government of Barbados to strengthen the capacity of its Coastal Zone Management Unit to map and value the countrys ecosystem services and identify climate-resilient pathways for coastal investment. More recently, Barbados attended discussions at the IDBs virtual High Level Plenary on Natural Capital Mainstreaming and Finance and in its revised NDC states that it aims to incorporate natural capital categories in national assets accounting.

While there is no formal body, the Coastal Zone Management Unit does provide technical input and advice to government on marine ecosystem services and their economic value, the implementation of its Marine Coastal Zone Management Plan 2020-2030 and management of Barbados Marine Exclusive Economic Zone.

No discussion or plans evident for environmental fiscal reform. Barbados is highly constrained by its lack of fiscal space, and in 2018 commenced a major 4-year programme of fiscal adjustment and structural reform supported by the IMFs Extended Fund Facility. The measures (outlined in the Barbados Economic Recovery and Transformation Plan) focused primarily on domestic and external debt restructuring and changes to revenue and expenditure models to restore macroeconomic stability - and did not consider green taxation or spending policies. With the pandemic hitting in early 2020, and debt levels rebounding, the country also missed out on a posible marine Debt-for-Nature swap with The Nature Conservancy.