Trinidad & Tobago
Petrol's empty promises
The island nation of Trinidad and Tobago is small in terms of both population and landmass – only 1.3 million people spread over an area half the size of Cyprus – but has grown to become the wealthiest country in the Caribbean. Recognised as a high-income economy by the World Bank, Trinidad and Tobago’s rapid industrialisation since the 1970s has delivered prosperity and well-being to its citizens, and the country scores highly on human and social development indices. But the country faces an uncertain future, especially with tourist revenues in freefall post-COVID.
This affluence is largely based on the islands’ large reserves of oil and gas, delivering billions of dollars of foreign investment and export income for over fifty years. But this windfall has also fostered dependency: the petroleum sector provides 85% of Trinidad and Tobago’s export earnings, 40% of its government revenue and over 35% of its GDP – all while providing only 5% of the country’s jobs.1
This reliance on petrochemicals has left the country at the mercy of international commodity markets: booming growth when prices are high, but recession and stagnation when they fall. The 2008 global financial crisis caused a deep recession, with contracting exports, negative growth rates and increasing debt – projected to rise to 80% of GDP by 2021.2To make matters worse, declining reserves have led to falling output and rising production costs, further hammering income. The national oil refinery Petrotrin was closed in 2018 after years of falling output, with the loss of 5000 jobs.3
So far, green measures have been largely absent from COVID response stimulus and structural recovery plans, although the government's Roadmap to Recovery plan does include explicit commitments to social inclusion and job preservation. A few specific green stimulus measures include the removal of tax concessions on imported motor vehicles, but stimulus to date has largely supported business as usual activities, including new support to the petrochemical industries.
Fossil fuel dependency has affected Trinidadian society in more subtly pernicious ways too. With 99% of electricity produced from domestic natural gas, and big government subsidies for transport fuels, citizens have become accustomed to some of the lowest energy costs outside of the Middle East. Artificially low prices have led to high consumption – Trinidadians have the world’s second highest carbon footprint per capita – and rigged the market against renewable energy, despite the island’s world-class reserves of sun, wind and wave power.4
The short-term promises of oil & gas profits have thus left Trinidad and Tobago in a perilous situation. As a small island state, it is highly vulnerable to rising seas and intensifying storms brought on by climate change – and so pushed for a more ambitious 1.5°C warming limit at the Paris climate negotiations.
But its dependence to oil and gas income, even when that income is erratic at best, has leached ambition from the government’s environment policies, paralysed a potential transition to clean electricity, and left the Treasury stuck with expensive energy subsidies that would be politically nightmarish to remove. Sooner or later, Trinidad & Tobago will need to diversify its economy and find other sources of prosperity beyond petrol. But the longer it continues to shackle itself to the oil industry, the harder that transition will be.
Policy Scores
Last updated 18 Dec 2025
Governance
National Green Economy Planning
The government’s Revised National Development Strategy: Vision 2030 (2024–2028) and the National Climate Change Policy (2023) establish commitments to low-carbon transition and resilience. The Public Sector Investment Programme (PSIP) 2025 includes a “Green Transition Portfolio”. However, these initiatives remain fragmented. The country is actively working to update its Nationally Determined Contribution (NDC). A National Adaptation Plan has been developed, outlining a strategic approach to climate change impacts across key sectors.
The government’s Revised National Development Strategy: Vision 2030 (2024–2028) and the National Climate Change Policy (2023) establish commitments to low-carbon transition and resilience. The Public Sector Investment Programme (PSIP) 2025 includes a “Green Transition Portfolio”. However, these initiatives remain fragmented. The country is actively working to update its Nationally Determined Contribution (NDC). A National Adaptation Plan has been developed, outlining a strategic approach to climate change impacts across key sectors.
Inclusive Corporate Governance
The updated Code of Corporate Governance provides voluntary standards and guidance for companies on integrating ESG and promoting gender diversity on boards. Reliance on voluntary disclosure and best-practice guides means these policies have not yet matured into a comprehensive strategy with clear targets, mandatory requirements and incentives. A 2022 PwC corporate governance survey in T&T finds that only around 30% of boards regularly include ESG on agendas, Many firms lack formal governance processes linking ESG to board oversight.
The updated Code of Corporate Governance provides voluntary standards and guidance for companies on integrating ESG and promoting gender diversity on boards. Reliance on voluntary disclosure and best-practice guides means these policies have not yet matured into a comprehensive strategy with clear targets, mandatory requirements and incentives. A 2022 PwC corporate governance survey in T&T finds that only around 30% of boards regularly include ESG on agendas, Many firms lack formal governance processes linking ESG to board oversight.
Participatory Policymaking
The government regularly conducts public consultations for proposed legislation, but this practice is not mandatory by law for all policies or legislation. While there is a strong focus on social impact through the Social Sector Investment Programme (SSIP) and the launch of the National Action Plan on Women, Peace, and Security (WPS NAP 2025–2030), which integrates gender-sensitive and evidence-based approaches, a systematic and mandatory legislative requirement for comprehensive impact assessments is still lacking.
The government regularly conducts public consultations for proposed legislation, but this practice is not mandatory by law for all policies or legislation. While there is a strong focus on social impact through the Social Sector Investment Programme (SSIP) and the launch of the National Action Plan on Women, Peace, and Security (WPS NAP 2025–2030), which integrates gender-sensitive and evidence-based approaches, a systematic and mandatory legislative requirement for comprehensive impact assessments is still lacking.
Beyond GDP
The Vision 2030 National Development Strategy (2024–2028 revision) acknowledges the need for more comprehensive measures of progress, including sustainability, equity, and wellbeing indicators aligned with the SDGs. The Central Statistical Office and the Environmental Management Authority, with UNDP and UNEP support, have begun developing natural capital accounts. Traditional macroeconomic metrics continue to dominate national planning.
The Vision 2030 National Development Strategy (2024–2028 revision) acknowledges the need for more comprehensive measures of progress, including sustainability, equity, and wellbeing indicators aligned with the SDGs. The Central Statistical Office and the Environmental Management Authority, with UNDP and UNEP support, have begun developing natural capital accounts. Traditional macroeconomic metrics continue to dominate national planning.
Finance
Green Finance & Banking
The Central Bank of Trinidad and Tobago has maintained its focus on integrating environmental risk, specifically climate change scenario planning, into its financial stability framework, which was evident in the 2017 regulations and confirmed by its continued work on climate risk in its Strategic Plan 2021/22–2025/26. The country continues to rely heavily on its fossil fuel economy. The overall strategy for prioritizing private green investment through mandatory requirements or penalties for high-polluting industries is not robust enough.
The Central Bank of Trinidad and Tobago has maintained its focus on integrating environmental risk, specifically climate change scenario planning, into its financial stability framework, which was evident in the 2017 regulations and confirmed by its continued work on climate risk in its Strategic Plan 2021/22–2025/26. The country continues to rely heavily on its fossil fuel economy. The overall strategy for prioritizing private green investment through mandatory requirements or penalties for high-polluting industries is not robust enough.
Greening Fiscal & Monetary Policy
A major policy shift is the government's active exploration and promotion of green bonds and other green finance instruments. The Central Bank of Trinidad and Tobago (CBTT) has been a key driver in this, reaffirming its commitment to green financing and actively working to develop a climate taxonomy and assess climate risks.
On the fiscal side, the government has continued to require Environmental Impact Assessments for new state projects, and in its 2025 budget, it announced the exemption of all duties and taxes on electric vehicle charging equipment and related accessories, a clear green fiscal incentive. While a proposed increase on diesel levies has not been widely implemented, the country's participation in international forums on green finance and the clear interest in developing a green bond market show a strategic shift toward integrating environmental considerations into its fiscal and monetary policy.
A major policy shift is the government's active exploration and promotion of green bonds and other green finance instruments. The Central Bank of Trinidad and Tobago (CBTT) has been a key driver in this, reaffirming its commitment to green financing and actively working to develop a climate taxonomy and assess climate risks.
On the fiscal side, the government has continued to require Environmental Impact Assessments for new state projects, and in its 2025 budget, it announced the exemption of all duties and taxes on electric vehicle charging equipment and related accessories, a clear green fiscal incentive. While a proposed increase on diesel levies has not been widely implemented, the country's participation in international forums on green finance and the clear interest in developing a green bond market show a strategic shift toward integrating environmental considerations into its fiscal and monetary policy.
Green Trade Practices
Trinidad y Tobago has some sustainability language in its trade agreements, mainly via regional Economic Partnership Agreements (EPAs), but there is little evidence that green priorities are embedded as binding, market-access provisions. The country participates in the EU–CARIFORUM and UK–CARIFORUM EPAs, which include sustainable-development chapters, but these are focused on cooperation and do not provide EGS-specific liberalisation nor taxonomy/carbon-pricing interoperability. At a national level, there is no carbon price and no national green taxonomy in force. The country's approach is reactive, driven by the threat of carbon border adjustment mechanisms from major trading partners like the European Union.
Trinidad y Tobago has some sustainability language in its trade agreements, mainly via regional Economic Partnership Agreements (EPAs), but there is little evidence that green priorities are embedded as binding, market-access provisions. The country participates in the EU–CARIFORUM and UK–CARIFORUM EPAs, which include sustainable-development chapters, but these are focused on cooperation and do not provide EGS-specific liberalisation nor taxonomy/carbon-pricing interoperability. At a national level, there is no carbon price and no national green taxonomy in force. The country's approach is reactive, driven by the threat of carbon border adjustment mechanisms from major trading partners like the European Union.
Pricing Carbon
The government has stated that they are "in the process of finalising a proposal to develop the carbon pricing mechanism" and "hope to build on that to develop a more robust carbon pricing system". So the instrument is not yet in a formal trial phase. The country does not have a carbon budget either, but does have a quantified national emission reduction target (its latest NDC) that serves a high-level commitment.
The government has stated that they are "in the process of finalising a proposal to develop the carbon pricing mechanism" and "hope to build on that to develop a more robust carbon pricing system". So the instrument is not yet in a formal trial phase. The country does not have a carbon budget either, but does have a quantified national emission reduction target (its latest NDC) that serves a high-level commitment.
Sectors
Cross-Sectoral Planning
Trinidad and Tobago has strengthened its approach to green sectoral policy by building on its existing national development strategy. The country's National Green Growth Strategy, currently in development, is set to be the primary framework for driving a low-carbon, resource-efficient, and climate-resilient economy. This new strategy builds on the goals outlined in Vision 2030 and is a key outcome of the new Ministry of Planning and Development's focus on integrating sustainability across sectors. This move signifies a shift from a limited, ad-hoc approach to one with a dedicated, cross-cutting plan. For example, the government's Green Hydrogen Strategy aims to leverage existing expertise in petrochemicals to position the country as a regional hub for green hydrogen, a policy with clear sectoral targets and an implementation roadmap. In the waste sector, the government is actively promoting a circular economy approach through initiatives like the "Catalysing and Connecting the Circular Economy" project, with a focus on waste management and resource efficiency. While a dedicated national-level agency for green policy coordination still doesn't exist, the Ministry of Planning and Development is acting as a central coordinating body. The country's ongoing revision of its National Biodiversity Strategy and Action Plan also demonstrates a commitment to aligning sectoral plans with global sustainability goals.
Trinidad and Tobago has strengthened its approach to green sectoral policy by building on its existing national development strategy. The country's National Green Growth Strategy, currently in development, is set to be the primary framework for driving a low-carbon, resource-efficient, and climate-resilient economy. This new strategy builds on the goals outlined in Vision 2030 and is a key outcome of the new Ministry of Planning and Development's focus on integrating sustainability across sectors. This move signifies a shift from a limited, ad-hoc approach to one with a dedicated, cross-cutting plan. For example, the government's Green Hydrogen Strategy aims to leverage existing expertise in petrochemicals to position the country as a regional hub for green hydrogen, a policy with clear sectoral targets and an implementation roadmap. In the waste sector, the government is actively promoting a circular economy approach through initiatives like the "Catalysing and Connecting the Circular Economy" project, with a focus on waste management and resource efficiency. While a dedicated national-level agency for green policy coordination still doesn't exist, the Ministry of Planning and Development is acting as a central coordinating body. The country's ongoing revision of its National Biodiversity Strategy and Action Plan also demonstrates a commitment to aligning sectoral plans with global sustainability goals.
Circular Economy
Trinidad & Tobago references circular economy principles in its Vision 2030 and other environmental strategies, for instance the National Integrated Solid Waste/Resource Management Policy 2024, which outlines a strategic framework for managing waste and promoting the 3Rs (reduce, reuse, and recycle). The government has advanced a Draft Beverage Containers Bill (2024) aiming to introduce deposit-return schemes for PET/plastics; as of Aug 2025, it is still pending adoption. Other efforts focus on municipal waste reduction and NGO-driven recycling initiatives. However, there is no national circular economy roadmap, no CMUR targets, and no Sustainable Public Procurement law or action plan mandating circular standards. There are some ad hoc waste-stream measures.
Trinidad & Tobago references circular economy principles in its Vision 2030 and other environmental strategies, for instance the National Integrated Solid Waste/Resource Management Policy 2024, which outlines a strategic framework for managing waste and promoting the 3Rs (reduce, reuse, and recycle). The government has advanced a Draft Beverage Containers Bill (2024) aiming to introduce deposit-return schemes for PET/plastics; as of Aug 2025, it is still pending adoption. Other efforts focus on municipal waste reduction and NGO-driven recycling initiatives. However, there is no national circular economy roadmap, no CMUR targets, and no Sustainable Public Procurement law or action plan mandating circular standards. There are some ad hoc waste-stream measures.
Green Transport & Mobility
Trinidad & Tobago has adopted some initiatives to promote EV adoption, like fiscal incentives for EV imports and pilot electric bus routes. Fewer than 50 public chargers are operational, mostly in Port of Spain and near highways. Overall, limited infrastructure, slow scaling, no policies for freight decarbonisation, and weak regulatory standards for private vehicles. T&T lacks mandatory CO₂ standards or a national phase-out date for ICE vehicles.
Trinidad & Tobago has adopted some initiatives to promote EV adoption, like fiscal incentives for EV imports and pilot electric bus routes. Fewer than 50 public chargers are operational, mostly in Port of Spain and near highways. Overall, limited infrastructure, slow scaling, no policies for freight decarbonisation, and weak regulatory standards for private vehicles. T&T lacks mandatory CO₂ standards or a national phase-out date for ICE vehicles.
Clean Energy
While the country's previous 10% renewable energy target for 2021 was missed, the government has since set a new and more ambitious target of 30% of energy needs via renewable energy by 2030. This new goal is now being pursued through concrete, utility-scale projects. The country's first major renewable energy project, a 112MW solar farm at Brechin Castle, is set to become operational in 2025. This project alone is expected to provide clean power for approximately 31,500 households. Furthermore, the country is exploring other avenues for clean energy, including the potential for wind power, as detailed in a recent roadmap. While these new policies and projects represent a significant step forward, the country's electricity generation remains almost entirely reliant on natural gas, with a minor contribution from renewables, as of mid-2025.
While the country's previous 10% renewable energy target for 2021 was missed, the government has since set a new and more ambitious target of 30% of energy needs via renewable energy by 2030. This new goal is now being pursued through concrete, utility-scale projects. The country's first major renewable energy project, a 112MW solar farm at Brechin Castle, is set to become operational in 2025. This project alone is expected to provide clean power for approximately 31,500 households. Furthermore, the country is exploring other avenues for clean energy, including the potential for wind power, as detailed in a recent roadmap. While these new policies and projects represent a significant step forward, the country's electricity generation remains almost entirely reliant on natural gas, with a minor contribution from renewables, as of mid-2025.
Just Transition
Green Job Creation
The government is now actively developing a Just Transition Policy and a National Green Growth Strategy.
The government is now actively developing a Just Transition Policy and a National Green Growth Strategy.
Just Transition Frameworks
A single roadmap is not yet institutionalized. The country is guided by existing plans like Vision 2030 and is integrating social justice in its climate strategy, with green skills training in renewable energy being implemented by institutions like NESC-Technical Institute, and community-based eco-enterprise projects supported by the UNDP's GEF Small Grants Programme and the Green Fund. A Draft National Just Transition of the Workforce Policy is being developed with support from international partners.
A single roadmap is not yet institutionalized. The country is guided by existing plans like Vision 2030 and is integrating social justice in its climate strategy, with green skills training in renewable energy being implemented by institutions like NESC-Technical Institute, and community-based eco-enterprise projects supported by the UNDP's GEF Small Grants Programme and the Green Fund. A Draft National Just Transition of the Workforce Policy is being developed with support from international partners.
Greening MSMEs & Social Enterprise
The government offers an SME Listing & Mentorship Programme providing equity, incentives and access to capital for SMEs wishing to scale. There is no distinct legal form for social enterprise, no mandatory regulatory support for greening MSMEs, and the incentives are largely applied through generic SME programmes.
The government offers an SME Listing & Mentorship Programme providing equity, incentives and access to capital for SMEs wishing to scale. There is no distinct legal form for social enterprise, no mandatory regulatory support for greening MSMEs, and the incentives are largely applied through generic SME programmes.
Inclusive Social Protection
Trinidad and Tobago has initiated a significant push to modernize its social protection system under the Social Sector Investment Programme (SSIP) 2025. The government's focus has shifted to improving program efficiency and targeting vulnerable populations more effectively. A key innovation is the ongoing implementation of the National Register of Vulnerable Persons (NRVP), which aims to create a centralized database to streamline the delivery of social services and make policy decisions more informed. This move addresses the previous concern about a lack of coordination. Additionally, the government, with support from the United Nations Development Programme (UNDP), is working to strengthen the country's social protection system to make it shock-responsive.
Trinidad and Tobago has initiated a significant push to modernize its social protection system under the Social Sector Investment Programme (SSIP) 2025. The government's focus has shifted to improving program efficiency and targeting vulnerable populations more effectively. A key innovation is the ongoing implementation of the National Register of Vulnerable Persons (NRVP), which aims to create a centralized database to streamline the delivery of social services and make policy decisions more informed. This move addresses the previous concern about a lack of coordination. Additionally, the government, with support from the United Nations Development Programme (UNDP), is working to strengthen the country's social protection system to make it shock-responsive.
Nature
Ocean & Land Conservation
The National Biodiversity Strategy and Action Plan (NBSAP) 2017–2022 includes targets and indicators aligned with the SDGs, and the Ministry of Planning has initiated the development of a third, updated NBSAP expected to strengthen alignment with the GBF. Many protected areas still lack operational management plans, data collection remains inconsistent, and progress assessments are not published regularly.
The National Biodiversity Strategy and Action Plan (NBSAP) 2017–2022 includes targets and indicators aligned with the SDGs, and the Ministry of Planning has initiated the development of a third, updated NBSAP expected to strengthen alignment with the GBF. Many protected areas still lack operational management plans, data collection remains inconsistent, and progress assessments are not published regularly.
Natural Capital Accounting
The government compiles environmental statistics via its CSO and publishes a First Compendium of Environmental Statistics, reflecting basic data collection. However, the discussion is focused on general ESG/sustainability, not the integration of natural capital accounting data into financial decision-making by an independent body.
The government compiles environmental statistics via its CSO and publishes a First Compendium of Environmental Statistics, reflecting basic data collection. However, the discussion is focused on general ESG/sustainability, not the integration of natural capital accounting data into financial decision-making by an independent body.
Sustainable Agriculture & Food Systems
The Vision 2030 National Development Strategy identifies food and nutrition security as a priority and calls for sustainable production systems but provides no measurable 2030 indicators. The regional CARICOM "25 by 2025" initiative aims to reduce the region's food import by 25% by the year 2025. This has prompted national commitments to increase local production and promote food security, and Trinidad y Tobago has put in place subsidies and incentives to farmers, like the Agricultural Finance Support Programme. There is no plan for phasing out harmful subsidies or for implementing regenerative agriculture practices. The focus remains on boosting production to address food security concerns.
The Vision 2030 National Development Strategy identifies food and nutrition security as a priority and calls for sustainable production systems but provides no measurable 2030 indicators. The regional CARICOM "25 by 2025" initiative aims to reduce the region's food import by 25% by the year 2025. This has prompted national commitments to increase local production and promote food security, and Trinidad y Tobago has put in place subsidies and incentives to farmers, like the Agricultural Finance Support Programme. There is no plan for phasing out harmful subsidies or for implementing regenerative agriculture practices. The focus remains on boosting production to address food security concerns.
Nature Finance
Trinidad & Tobago, over the last years, has shown evidence of prioritising nature finance through existing fiscal tools and new investments. The BIOREACH Project (2025–2029), co-financed by the EU and GEF, targets biodiversity restoration and sustainable livelihoods in rural communities. The government’s Public Sector Investment Programme (2025) continues to integrate environmental priorities under Vision 2030, while discussions on domestic carbon pricing, induced by exposure to the EU’s CBAM, indicate movement toward improving fiscal alignment with climate and biodiversity goals. The Green Fund levy (0.3 % of gross income for companies) is still the main mechanism supporting conservation. Despite these advances, the country lacks systemic reform of environmental taxation, and there are no explicit finance mechanisms targeting directly Indigenous Peoples and Local Communities.
Trinidad & Tobago, over the last years, has shown evidence of prioritising nature finance through existing fiscal tools and new investments. The BIOREACH Project (2025–2029), co-financed by the EU and GEF, targets biodiversity restoration and sustainable livelihoods in rural communities. The government’s Public Sector Investment Programme (2025) continues to integrate environmental priorities under Vision 2030, while discussions on domestic carbon pricing, induced by exposure to the EU’s CBAM, indicate movement toward improving fiscal alignment with climate and biodiversity goals. The Green Fund levy (0.3 % of gross income for companies) is still the main mechanism supporting conservation. Despite these advances, the country lacks systemic reform of environmental taxation, and there are no explicit finance mechanisms targeting directly Indigenous Peoples and Local Communities.
Green Recovery
Green Recovery Measures
Green measures are modest and non-central to the overall recovery policy. Specific initiatives, such as the $5 million Green Manufacturing Initiative, the 2024 Marine Spatial Plan cooperation agreement for the Gulf of Paria, and securing Green Climate Fund support for CCS readiness, are project-level and lack the necessary scale or strong conditionality for broad stimulus. The long-standing Green Fund, while accumulating over $11 billion, remains largely ineffective due to its historically minimal disbursement rate.
Green measures are modest and non-central to the overall recovery policy. Specific initiatives, such as the $5 million Green Manufacturing Initiative, the 2024 Marine Spatial Plan cooperation agreement for the Gulf of Paria, and securing Green Climate Fund support for CCS readiness, are project-level and lack the necessary scale or strong conditionality for broad stimulus. The long-standing Green Fund, while accumulating over $11 billion, remains largely ineffective due to its historically minimal disbursement rate.
References
- https://www.cia.gov/library/publications/the-world-factbook/geos/td.html
- https://www.imf.org/en/Publications/CR/Issues/2016/12/31/Trinidad-and-Tobago-2016-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-44034
- https://energy-analytics-institute.org/2018/08/30/shut-down-of-historic-petrotrin-refinery/
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