Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Caribbean Development Trends

  • HOME
  • CATEGORIES
    • Agribusiness
    • Antigua and Barbuda
    • Barbados
    • BehaviorChange
    • Belize
    • Bermuda
    • biodiversity
    • Blockchain
    • Caribbean
    • Caribbean Culture and Media
    • Climate Change
    • Creative Economy
    • Crime Prevention and Citizen Security
    • Data and Knowledge
    • De-risking
    • Dominica
    • Dutch
    • Early Childhood Development
    • Economic Growth
    • Education Policy
    • energy
    • entrepreneurship
    • Environmental and Climate Change
    • Events
    • Extractives
    • Finance
    • Fiscal Rules
    • gender
    • Governance and Regulatory Policy Reforms
    • Grenada
    • Guyana
    • Haiti
    • Health
    • Health Policy
    • Hurricane
    • Hurricane Irma
    • infrastructure
    • Innovation and change
    • Intellectual Property
    • IWD
    • Jamaica
    • JumpCaribbean
    • Labor
    • Labour Markets
    • MOOC
    • Music
    • Natural Disasters
    • Nurturing Institutions
    • OECS
    • Podcast
    • Poverty
    • Private Sector and Entrepreneurship
    • Saint Kitts and Nevis
    • Saint Lucia
    • Saint Vincent and Grenadines
    • skills
    • Sports for Development
    • Suriname
    • Technology
    • The Bahamas
    • The Blue Economy
    • Transportation
    • Tourism
    • Trinidad and Tobago
    • Uncategorized
    • VAWG
    • Webinar
    • women
    • Women for Change
    • youth
  • Country Offices
    • Bahamas
    • Barbados
    • Guyana
    • Jamaica
    • Suriname
    • Trinidad and Tobago
  • Press Releases
    • Bahamas
    • Barbados
    • Guyana
    • Jamaica
    • Suriname
    • Trinidad and Tobago
  • Authors

Four Climate-Smart Business Opportunities in Jamaica and the Caribbean

December 19, 2014 by Elizabeth Nicoletti Leave a Comment


 

If we contemplate climate change long enough, it seems like we all lose. However, if you really want to talk about the equivalent of an unfair penalty or missed offside call, look around Jamaica. Ten hurricanes ravaged the country in the last five years, each causing damages of approximately US$100 million.  The rainy season is longer, droughts follow that exacerbate agricultural deficits, and the sea level is rising 3.5 mm year. Climate change affects Jamaica and other Caribbean islands disproportionately. And Jamaicans contribute very little to its causes.

Ports, urban infrastructure, fisheries, public health, tourism, agriculture and more are vulnerable to the extreme weather patterns. Jamaican businesses stand to add value environmentally, socially and financially by embracing sustainability, especially in the following sectors:

  1. Agriculture in Jamaica represents 33 percent of the labor force. If the sector continues with business-as-usual, it will have 25 percent less arable land by 2050, according to University of West Indies Mona. But relatively small investments can bring returns.  Adaptation strategies empower farmers to minimize weather risks and cultivate high-value, weather-resistant crops. Large and multinational companies that depend on supply chains could benefit from raising awareness and providing training to ensure the long-term sustainability of suppliers, most of whom are farmers. Local commercial banks have opportunities to provide financing and guarantees for crop switching, soil conservation, drip irrigation systems and reforestation, to name a few.
  2. Energy efficiency:  Already Jamaica is incubating and fast-tracking lower-emission, lower-cost solutions such as solar control films, cool roofs and more efficient air conditioning. Running Jamaica’s buildings is more expensive than in any other country in the world, so companies and government could save a lot by making infrastructure investments that incorporate energy efficiency from project design.
  3. Renewable energy: Investments in wind, solar, hydro and biomass promise alleviation from Jamaica’s exorbitant electricity costs – a significant barrier to economic growth. Renewables could lower the average electricity costs 67 percent from US$0.22 to US$0.07 per kWh by 2030, says the Jamaica Sustainable Energy Roadmap.  The possibility exists that, with sufficient political will and business interest, Jamaica could meet its electricity demand solely with renewables. For example, the Worldwatch Institute report suggests that ten medium wind farms could supply 50 percent of current power needs. Twenty-five percent could come from seven square kilometers of solar PV panels; and agriculture waste-fueled biomass generation 10 percent more.  Few private energy developers are in Jamaica at present. Multilaterals and donor funds like Climate Investment Funds are well-positioned to partner and take some of the first-mover risks involved.
  4. Tourism in Jamaica makes up 30 percent of GDP, and its expansion is a source of jobs and private sector growth. Climate-friendly investments include sustainable agricultural supply chains, the incorporation of renewable energy and energy efficiency in hotels, restaurants, boats and other tourist establishments. Right now in Kingston, the IDB is financing the country’s first-ever LEED-certified hotel with state-of-the-art insulation and solar panels to heat water and minimize its footprint. The hotel will be less expensive to operate and more inclined to attract eco-conscious travelers. Hopefully this example could raise the bar for new construction in tourism.

The risks of climate change in the Caribbean are clear. So let’s focus on the opportunity for committed and sustainable businesses to enter markets and thrive.  Launching sustainable ventures in agriculture, energy efficiency, renewable energy and tourism offer several ways to come out winners.

IDB’s blog Sustainable business


Filed Under: Climate Change & Environment, Jamaica Tagged With: agriculture, caribbean, Climate change, crop switching, drip irrigation, energy, energy efficiency, hurricane, hydro, Jamaica, renewable energy, soil conservation, solar, tourism, wind

Elizabeth Nicoletti

Elizabeth Nicoletti maneja comunicaciones ejecutivas y participación de partes interesadas en BID Invest, donde cubre proyectos complejos de infraestructura con asuntos de riesgo contextual y reputacional además de liderar las comunicaciones para la Oficina del Gerente General. Antes trabajaba en la Vicepresidencia del Sector Privado y Operaciones sin Garantía Soberana como una redactora de discursos, y en la División de Mercados Financieros del Banco Interamericano de Desarrollo (BID). Antes de llegar al Grupo BID, Elizabeth trabajó en la Corporación Financiera Internacional (IFC, por sus siglas en inglés) en Washington, DC, la Fundación Chol-Chol en Temuco, Chile y el Centro Internacional de Investigación de la Mujer (ICRW, por sus siglas en inglés) en Washington, DC. Elizabeth cuenta con una maestría en economía internacional de Johns Hopkins University, School of Advanced International Studies (SAIS) y es licenciada de Georgetown University de Washington, DC.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

Search

Caribbean Dev Trends

We provide unique and timely insights on the Caribbean and its political, social, and economic development. At the IDB, we strive to improve lives in the Caribbean by creating vibrant and resilient economies where people are safe, productive and happy.

Similar posts

  • Grenada Energy Market
  • Four reasons why the Caribbean private sector must invest in renewables
  • Three Strategies to Transform the Caribbean’s Energy Sector
  • Empowering the Caribbean: A Journey Towards Sustainable Energy
  • Energy Efficiency Promotes Sustainable Development in the Caribbean

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

    Blog posts written by Bank employees:

    Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


    For blogs written by external parties:

    For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

    The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

    Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



    Privacy Policy

    Copyright © 2025 · Magazine Pro on Genesis Framework · WordPress · Log in

    Banco Interamericano de Desarrollo

    Aviso Legal

    Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

    facebook
    twitter
    youtube