BRIEFING: TRINIDAD AND TOBAGO PROSPERITY POST FOSSIL FUELS

Trinidad and Tobago is transitioning from an economy where energy products account for approximately 37% of gross domestic output toward a low-carbon model. The country currently relies on 100% natural gas for power generation but has set a target of 30% renewable energy production by 2030 and a conditional 15% reduction in GHG emissions by 2030 from a 2013 baseline. The briefing argues that integrating renewables would allow the state to divert natural gas to downstream petrochemical production, increasing revenue and lowering the carbon footprint compared to combustion. Key obstacles include low electricity tariffs (0.055 USD/kWh) that deter renewable investment and the risk of punitive measures from the EU's Carbon Border Adjustment Mechanism (CBAM) on petrochemical exports. The authors recommend a comprehensive decarbonisation roadmap incorporating distributional, procedural, and recognitional energy justice to protect vulnerable populations and ensure equitable participation.

• Trinidad and Tobago's economy is heavily dependent on hydrocarbons, with energy products representing approximately 37% of the nominal GDP in 2022 and accounting for 81% of overall exports and 55% of fiscal revenues in the same year.
• The country currently generates 100% of its electricity from natural gas, but it has established a target to achieve 30% renewable energy power production by 2030 and a conditional 15% reduction in GHG emissions by 2030 relative to a 2013 baseline.
• Shifting power generation to renewables offers a financial opportunity: diverting natural gas from combustion to petrochemical production is a lower-carbon process that increases state revenue. For example, a 100 MW solar PV facility could avoid 2,885,184 MMBtu of annual gas use, saving the state USD 12,550,550 annually at prevailing market rates.
• Low electricity tariffs, currently at 0.055 USD/kWh, are among the lowest in the region and act as a deterrent to the deployment of renewable energy technologies.
• The EU's Carbon Border Adjustment Mechanism (CBAM) poses a risk to the economy, as it may levy punitive measures on exported downstream petrochemicals from countries lacking carbon mitigation, potentially reducing state revenues.
• A just energy transition for the country must be based on three pillars of energy justice: distributional justice (equitable distribution of costs and benefits), procedural justice (democratic participation in decision-making), and recognitional justice (addressing the needs of marginalized and vulnerable groups).
• To diversify the national budget away from hydrocarbons, the government intends to establish Special Economic Zones and support sectors including sustainable agriculture, tourism, financial services, telecommunications, and green manufacturing.

APA

Climate Strategies (n.d.). BRIEFING: TRINIDAD AND TOBAGO PROSPERITY POST FOSSIL FUELS. https://climatestrategies.org/wp-content/uploads/2024/11/PPFF-Briefing-Trinidad-and-Tobago-Final-2.pdf

Chicago

Climate Strategies. BRIEFING: TRINIDAD AND TOBAGO PROSPERITY POST FOSSIL FUELS. n.d. https://climatestrategies.org/wp-content/uploads/2024/11/PPFF-Briefing-Trinidad-and-Tobago-Final-2.pdf.

Wikipedia

{{cite report |author=Climate Strategies |title=BRIEFING: TRINIDAD AND TOBAGO PROSPERITY POST FOSSIL FUELS |url=https://climatestrategies.org/wp-content/uploads/2024/11/PPFF-Briefing-Trinidad-and-Tobago-Final-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatestrategiesndbriefing, author = {{Climate Strategies}}, title = {{BRIEFING: TRINIDAD AND TOBAGO PROSPERITY POST FOSSIL FUELS}}, institution = {Climate Strategies}, url = {https://climatestrategies.org/wp-content/uploads/2024/11/PPFF-Briefing-Trinidad-and-Tobago-Final-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }