GREEN STIMULUS IN THE CARIBBEAN

This report by the Rocky Mountain Institute (RMI) argues that Caribbean nations can use COVID-19 recovery stimulus to accelerate the transition to distributed energy resources (DERs). By focusing on solar PV, wind, electric vehicles (EVs), and energy efficiency, islands can create immediate jobs to offset pandemic losses while enhancing long-term resilience against climate-related shocks and diversifying economies heavily dependent on tourism.

• Distributed energy resources (DERs) offer a pathway to immediate job creation in the Caribbean to offset pandemic-related unemployment. RMI estimates that for a representative island with a population of 100,000 and a 10% increase in unemployment, specific DER targets could create significant employment: 750 jobs over five years from 50 megawatts of solar PV, 300 jobs over five years from 30 megawatts of wind, 300 jobs over three to four years from converting 10,000 vehicles to electric, 300 jobs for charging infrastructure for those 10,000 vehicles, and 100 jobs from a $10 million investment in energy efficiency.
• The Caribbean's unique geography and economic conditions make electric vehicle (EV) conversion and used imports more viable than new EV purchases. Because of small island sizes and short commutes, 'range anxiety' is not a significant barrier. For lower-income islands where new EVs (costing $30,000 to $40,000) are unaffordable, the report suggests converting existing internal combustion vehicles—particularly used Japanese imports—to electric, which can cost as little as $7,000 to $10,000.
• Transitioning to DERs enhances resilience against both climate-related and economic shocks. Unlike centralized systems, DERs can be designed as microgrids at critical infrastructure (hospitals, schools, water treatment facilities) to maintain essential services during grid outages caused by hurricanes. Economically, utilizing local renewable resources reduces the risk associated with the price volatility of imported fossil fuels.
• Undergrounding electricity grids is recommended as a high-employment strategy to mitigate the 'astronomical risk' of Category 5 hurricanes. The report notes that in 2017, Hurricanes Irma, Jose, and Maria caused extensive damage, with the UN Economic Commission for Latin America and the Caribbean (ECLAC) estimating $1 billion in direct infrastructure damage across five islands. Undergrounding is estimated to create 200 full-time jobs for every 100 miles of infrastructure.
• DERs can support economic diversification by lowering energy costs for the agro-industrial sector, which currently imports over 80% of its food from North America and Europe. High electricity costs currently make desalination-based irrigation unviable; reducing these costs through DERs could allow small-scale farms to expand their workforce and increase local food security.
• To implement these transitions, RMI recommends three immediate stimulus actions: backstopping electric utility credit to attract independent power producers, creating clean energy lines of credit to replace the need for sovereign guarantees, and enacting policy measures such as setting dates to ban internal combustion engine imports and waiving duty fees on clean energy components.

APA

Bunker, K., Gumbs, D., Locke, J., & Torbert, R. (2020). GREEN STIMULUS IN THE CARIBBEAN. RMI. https://rmi.org/app/uploads/2020/06/Green-Stimulus-in-the-Caribbean-June-2020.pdf

Chicago

Bunker, Kaitlyn, David Gumbs, Justin Locke, and Roy Torbert. GREEN STIMULUS IN THE CARIBBEAN. RMI, 2020. https://rmi.org/app/uploads/2020/06/Green-Stimulus-in-the-Caribbean-June-2020.pdf.

Wikipedia

{{cite report |last1=Bunker |first1=Kaitlyn |last2=Gumbs |first2=David |last3=Locke |first3=Justin |last4=Torbert |first4=Roy |title=GREEN STIMULUS IN THE CARIBBEAN |publisher=RMI |date=June 2020 |url=https://rmi.org/app/uploads/2020/06/Green-Stimulus-in-the-Caribbean-June-2020.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bunker2020green, author = {Bunker, Kaitlyn and Gumbs, David and Locke, Justin and Torbert, Roy}, title = {{GREEN STIMULUS IN THE CARIBBEAN}}, institution = {RMI}, year = {2020}, month = jun, url = {https://rmi.org/app/uploads/2020/06/Green-Stimulus-in-the-Caribbean-June-2020.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }