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General Recommendations The Caribbean’s energy policies at the regional and national levels suggest that countries are aware of the consequences of the current dependence on oil imports and have taken many steps toward addressing the drivers of the problem. Countries therefore need to continue focusing on diversifying energy sources, improving energy efficiency, reducing reliance on imported petroleum products, and using innovative financial instruments, such as carbon finance. The current global attention to biofuels and renewable energy cannot draw attention away from the important gains that can be made in the region through increased regional integration in the oil and gas market. Regional integration is essential for mitigating the impact of high oil prices on these small island states. A central component of integration is the supply of natural gas throughout the Caribbean. In the past, technology in natural gas transport and regasification infrastructure has allowed for only large-scale trading, leaving most countries of the region unable to take advantage of Trinidad and Tobago’s supply. However, recent technological advances in compressed natural gas maritime transport and smaller regasification terminals are rapidly reducing the costs of small-scale supply of natural gas in the region. Biofuels production in the region is also an integral element of any energy policy for the Caribbean region, as it can reduce domestic consumption of hydrocarbons and enable the region to become a competitive biofuels supplier in the international market. Other national efforts toward energy conservation and the development of renewable energy sources must also continue to be pursued. Recommendations for Further IDB Research The IDB has stated its aim to increase engagement and its loan portfolio with the six Member states in the Caribbean and to continue working in collaboration with the Caribbean Development Bank and CARICOM to maximize their collective impact in the region. In a speech in September 2006, President Moreno emphasized four key areas in which the IDB is helping the Caribbean Region confront its energy challenges.31 The IDB is: • Funding two Caribbean-focused technical cooperation programs with the objectives of developing renewable energy and energy efficiency 16PDF Image | Prospects for the Oil-Importing Countries of the Caribbean
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