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Prospects for the Oil-Importing Countries of the Caribbean

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Prospects for the Oil-Importing Countries of the Caribbean ( prospects-oil-importing-countries-caribbean )

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region.17 Petrocaribe may help provide lower prices on average to member countries, although Trinidad and Tobago and Barbados have not joined the initiative, stating that it would have a negative impact on their petroleum exports to the Caribbean.18 Production of Biofuels. The Inter-American Development Bank (IDB) recently commissioned a comprehensive study of the global potential for biofuels production with an emphasis on the Americas.19 This publication represents a worldwide initiative to increase usage of biofuels and emphasizes the prospects of the Caribbean to enhance its competitiveness by improving energy security, environmental preservation, and socioeconomic conditions through production of biofuels. There are several initiatives currently underway in the Caribbean region. The Caribbean Basin Initiative (and Dominican Republic-CAFTA, in the case of the Dominican Republic) offers duty-free access to the U.S. markets for ethanol for up to 7 percent of U.S. ethanol production. In another effort, CARICOM, the Caribbean Development Bank, and the IDB have begun working together to promote the development of biofuels through technical cooperation to expand biofuels potential through carbon finance in Barbados, Guyana, and Jamaica. The IDB has also provided the Mesoamerican Biofuels Group, which includes Belize and the Dominican Republic, with support through technical cooperation and funding for feasibility studies. Finally, Brazil has signed biofuels and bioenergy cooperation agreements with France to promote the development of biofuels in the Caribbean and Africa. Focus Countries The study concentrates on four countries in the region: the Dominican Republic, Haiti, Jamaica, and Trinidad and Tobago. The Dominican Republic has great potential for production and consumption of biodiesel and ethanol. In addition to the aforementioned regional initiatives, the government has established an enabling environment through its legal and regulatory framework. Most recently, 2005 legislation provides key tax incentives for production of biofuels.20 The country has the potential to increase its ethanol production, according to a study from the Dominican Republic’s National Competitiveness Center, which recommends the creation of three biodiesel plants.21 The Dominican Republic’s consumption of biofuels is also expected to 11

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