Harnessing Energy: A Leadership Challenge for The Caribbean

In a recent article for Forbes , the economist Marla Dukharan talks about the link between climate change, food insecurity and the lasting legacy of colonialism

“There’s a powerful nexus between our colonial past, the climate crisis, our food and fuel insecurity, and the fact that our progress as a people in the Caribbean has largely stagnated,” she declares “Agriculture, in my view, and food security more specifically, is one of the most important avenues available to us to escape the vicious cycle we find ourselves in.”

It got me thinking about how climate change presents an ever-growing threat to Caribbean nations, in particular small island states like Barbados and Grenada, where my parents hail from.

Both countries face significant environmental and economic challenges that could undermine their long-term sustainability if not addressed urgently. I thought about the effects of climate change on these two countries without ignoring the existing political and economic minefields that are needed to address this I wanted to examine the opportunities available for enhancing sustainability and explore for myself what a roadmap for how government and local leaders can take action to reduce debt, improve GDP, and build resilience.

Economic Impact and Debt Levels

Barbados is one of the most water-scarce nations in the world, exacerbated by long-standing water management issues, outdated infrastructure, and over-reliance on energy-intensive desalination plants. The country faces extended periods of drought, threatening agriculture, tourism, and everyday life. Barbados’ economy, heavily dependent on tourism and sugarcane agriculture, is vulnerable to disruptions caused by climate change, especially as global temperatures rise and rainfall becomes less predictable. It is not alone in poor water management across the Caribbeans as seen in the chart below

In addition to water shortages, Barbados faces a high debt-to-GDP ratio, partly due to the substantial costs of importing fossil fuels for electricity generation and the energy-intensive process of desalination. The government is spending a considerable portion of its budget on debt repayment, limiting its ability to invest in infrastructure and climate resilience. As of 2024, Barbados has made some progress in reducing debt, but the threat of climate change could stall these efforts without sustainable solutions.

Grenada faces the frequent devastation caused by tropical storms and hurricanes. Hurricane Beryl, which recently hit Grenada, Carriacou, and Petit Martinique, caused extensive damage to homes, roads, and agricultural lands. The recovery from such events is often slow and costly, leaving the country in a perpetual state of economic vulnerability. Grenada’s economy, like Barbados’, relies heavily on agriculture and tourism, both of which are highly susceptible to climate-related disasters.

The challenge for Grenada is further complicated like Barbados by its national debt levels. High costs associated with disaster recovery, coupled with the island’s reliance on imported energy, drain the country’s financial resources. Without proactive measures, Grenada risks facing a cycle of escalating debt and economic stagnation as climate change worsens.

Opportunities for Sustainability

Despite the challenges, Barbados and Grenada have tremendous opportunities to address their environmental vulnerabilities through sustainability initiatives. By focusing on water efficiency, and renewable energy, and leveraging public-private partnerships (PPIs), these nations can reduce their environmental footprint and improve their economies and reduce debt.

Water conservation and management present immediate opportunities for Barbados. Notwithstanding the current conflict in the Levant, it can learn from Israel, which faces similar arid conditions. They have pioneered water-saving technologies that Barbados can adopt which include drip irrigation , greywater recycling , and smart irrigation systems that have revolutionised Israel’s agriculture, allowing it to thrive despite limited water resources. Barbados can implement these technologies to enhance agricultural productivity while conserving precious water supplies. The introduction of water-efficient technologies can also be incentivised by government policies that provide financial support to farmers and homeowners who adopt these practices.

Grenada, which faces water supply challenges after hurricanes, could also benefit from decentralised water systems, including rainwater harvesting and solar-powered desalination units. These systems provide resilience in times of emergency, ensuring that communities have access to clean water even when central infrastructure is damaged. In addition to Israel, Grenada and Barbados could look to Aruba , which has successfully implemented water recycling and desalination systems to secure a reliable water supply despite its dry climate since 1903.

Renewable Energy

Barbados and Grenada stand to gain from the adoption of renewable energy sources. Barbados has already made strides in solar energy, to achieve 100% renewable energy by 2030 under its National Energy Policy . Scaling up solar farms and incentivising rooftop solar installations on residential and commercial buildings can significantly reduce Barbados’ reliance on expensive fossil fuel imports, freeing up financial resources for other economic initiatives. Public-private partnerships (PPIs), like Jamaica’s BMR Energy project in wind and solar energy, offer an opportunity to accelerate Barbados’ transition to clean energy through private sector investment.

Grenada, still recovering from the damage of Hurricane Beryl could prioritise building a decentralised energy grid using solar microgrids and community-based renewable energy projects. The island also has significant geothermal potential, which could be harnessed to provide a stable and reliable source of energy. Costa Rica , which generates over 98% of its electricity from renewable sources, serve as an example of how these states can thrive on sustainable energy.

Public-Private Partnerships and Startups

Startups focusing on climate sustainability and public-private partnerships (PPIs) are critical to driving innovation in the renewable energy and water sectors. The Caribbean Climate-Smart Accelerator , for example, fosters collaboration between governments, private sector companies, and startups to develop solutions for climate resilience. Island states can partner with regional organisations, international investors and green climate bonds to tap into these entrepreneurial ventures, accelerating the development of renewable energy and water efficiency technologies.

PPIs are also crucial for large-scale infrastructure projects, particularly in the renewable energy sector. Costa Rica as mentioned before has successfully used PPIs to develop geothermal and hydroelectric plants. Leveraging PPIs enables governments to share financial risk with private investors, making projects more viable and attractive to foreign investment.

A Roadmap for Government and Local Leadership

To secure long-term sustainability and economic resilience, a comprehensive strategy that addresses both the environmental challenges they face and the economic vulnerabilities exacerbated by climate change not only on individual islands but across the state is a powerful narrative for collective change.

The roadmap below outlines steps that governments and local leaders can take to build on existing policies and create new initiatives.

Establish Strong Policy Frameworks

Barbados can continue to advance its Barbados National Energy Policy (BNEP) by setting clearer milestones and expanding incentives for households and businesses to adopt solar energy. Grenada can develop a national renewable energy policy focused on diversifying its energy sources, especially by tapping into geothermal power. Both countries should also establish national water efficiency policies that encourage the adoption of smart irrigation, rainwater harvesting, and greywater recycling.

Engage in Regional and International Collaboration

Regional collaboration among Caribbean nations is essential for addressing climate change. Barbados and Grenada can work, or continue to work if already doing so, with regional organisations like the Caribbean Development Bank ( CDB) and the Caribbean Climate-Smart Accelerator to secure funding for large-scale renewable energy and water infrastructure projects. Internationally, both countries should seek partnerships with nations that have successfully implemented climate-resilient technologies, such as Israel or Aruba for water efficiency and Costa Rica and Jamaica for renewable energy.

Foster Public-Private Partnerships

Governments must actively engage the private sector in the development of renewable energy projects. PPIs can help fund the expansion of solar farms, wind turbines, and geothermal power plants, while also providing a platform for startups focused on sustainability. Creating a conducive business environment through tax incentives, streamlined regulatory processes, and government-backed guarantees can attract private-sector investment in these areas.

Invest in Climate-Resilient Infrastructure

One of the most pressing needs for both islands is to invest in infrastructure that can withstand the impacts of climate change. Governments should prioritise rebuilding roads, bridges, and homes with sustainable materials that are better equipped to handle extreme weather conditions. In Grenada, where hurricanes pose a major threat, implementing disaster-resilient building codes will help reduce future recovery costs. Barbados, meanwhile, can focus on upgrading its water supply infrastructure, including expanding water storage capacity and modernising its pipeline network.

Encourage Innovation and Entrepreneurship

By fostering innovation, Barbados and Grenada can become hubs for sustainability-focused startups. Governments can build on existing incubators and provide grants for entrepreneurs working on renewable energy, water conservation, and climate resilience. Collaborating with international organisations and universities can also spur research and development, allowing these islands to become leaders in sustainability innovation.

Promote Sustainable Tourism and Agriculture

Tourism and agriculture are key sectors in Barbados and Grenada, but they must evolve to become more sustainable. Eco-tourism initiatives, such as solar-powered resorts and nature-based experiences, can attract a new demographic of tourists while reducing environmental impact. Tough but necessary conversations with hotels about water conservation would also be in order. Adopting sustainable practices like crop diversification, organic farming, and smart irrigation will improve resilience and reduce water use.

Secure Financing for Large-Scale Projects

Financing is critical for the successful implementation of water and energy infrastructure projects. It would be wise to explore a mix of funding sources, including international climate funds like the Green Climate Fund (GCF), multilateral development banks, and private investment. By tapping into these resources, the islands can secure the capital needed for long-term projects that will improve sustainability and reduce vulnerability to climate change.

The path forward for Barbados and Grenada requires a multifaceted approach that combines sound policy frameworks, innovative partnerships, and climate-resilient infrastructure. Both islands face significant climate-related challenges, but by leveraging renewable energy, improving water efficiency, and embracing public-private partnerships, they can reduce their economic vulnerabilities and enhance long-term sustainability. By implementing this roadmap, the governments and local leaders of Barbados and Grenada can not only mitigate the impacts of climate change but also transform their economies, reduce national debt, and improve GDP.