Border Carbon Adjustments: Trinidad and Tobago country report

This report examines the potential socio-economic and environmental impacts of Border Carbon Adjustments (BCAs), specifically the EU's Carbon Border Adjustment Mechanism (CBAM), on Trinidad and Tobago. As a hydrocarbon-dependent economy and a major global exporter of ammonia and fertilizers, the country is highly vulnerable to import charges based on carbon emissions. The report analyzes sectoral vulnerabilities, stakeholder responses, and the role of the financial sector in supporting decarbonization, while providing policy recommendations to mitigate economic risks and leverage opportunities for green industrial transformation.

• Trinidad and Tobago is highly susceptible to BCAs due to its reliance on hydrocarbon exports, specifically ammonia, methanol, and fertilizers. Approximately 33% of total exports fall under the emissions-intensive trade-exposed (EITE) sector, representing about 13.5% of GDP. If the scope of affected products expands to other petrochemicals and manufactured goods, the impact could rise to 83% of exports and approximately 34% of GDP.
• The European Union is the country's second-largest trade partner, accounting for 14% of total exports. The value of exports potentially affected by the CBAM is USD 2,320.6 million, which constitutes 90.5% of Trinidad and Tobago's exports to the EU.
• Trinidad and Tobago faces significant competitiveness risks compared to global competitors in inorganic chemicals (ranked 15th) and fertilizers (ranked 23rd). Competitors such as China, the United States, South Korea, Germany, and Canada generally possess more advanced environmental regulations, renewable energy resources, and better access to green finance.
• The industrial sector is the primary source of domestic greenhouse gas emissions, with ammonia production accounting for 74% of those emissions, followed by methanol at 17%. The country aims for a 15% reduction in cumulative GHG emissions from the industrial sector, power generation, and transport by 2030, with an estimated cost of USD 2 billion.
• BCAs could cause severe social disruption, including job losses in extraction, refining, and manufacturing, particularly affecting communities like Point Lisas, Pointe-A-Pierre, and Mayaro. Furthermore, a 20% decline in oil and gas revenue could negatively impact social expenditure, which currently accounts for 41% of such revenue, threatening programs for the elderly, disabled, and students.
• Stakeholders view BCAs as both a risk and an opportunity. While 93% expect BCAs to become a widespread policy tool, concerns exist regarding the EU's CBAM potentially violating WTO non-discrimination principles. However, some see it as a catalyst to diversify the economy toward green hydrogen and climate-resilient sectors.
• The domestic financial sector is currently viewed as playing a neutral role in supporting decarbonization. Obstacles to green finance include regulatory uncertainty (28%), higher perceived risk of green projects (16%), and high transaction costs (13%). Stakeholders emphasize the need for international development finance and FDI, as the local sector may lack the capital and expertise for large-scale green transitions.
• To mitigate BCA impacts, the report recommends a phased strategy: short-term focus on data collection and international advocacy; medium-term implementation of domestic carbon pricing (carbon tax or ETS) and transitioning to green hydrogen production; and long-term economic diversification away from carbon-intensive exports.

APA

Mohan, P., & Jagessar, J. (2024). Border Carbon Adjustments: Trinidad and Tobago country report. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-07/border-carbon-adjustments-trinidad-and-tobago.pdf

Chicago

Mohan, Preeya, and Jaymieon Jagessar. Border Carbon Adjustments: Trinidad and Tobago country report. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-07/border-carbon-adjustments-trinidad-and-tobago.pdf.

Wikipedia

{{cite report |last1=Mohan |first1=Preeya |last2=Jagessar |first2=Jaymieon |title=Border Carbon Adjustments: Trinidad and Tobago country report |publisher=International Institute for Sustainable Development |date=July 2024 |url=https://www.iisd.org/system/files/2024-07/border-carbon-adjustments-trinidad-and-tobago.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mohan2024border, author = {Mohan, Preeya and Jagessar, Jaymieon}, title = {{Border Carbon Adjustments: Trinidad and Tobago country report}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jul, url = {https://www.iisd.org/system/files/2024-07/border-carbon-adjustments-trinidad-and-tobago.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }