Caribbean Carbon Pricing Initiative (CCPI)
The Caribbean nation states are well positioned to make a transformational shift toward low-carbon development, but lack the investment capital required to do so. Carbonergy BCS, Cornland International and CADA are collaborating on the development of the Caribbean Carbon Pricing Initiative (CCPI), which is intended to put a price on carbon emissions in the Caribbean in order to transform the region's energy sector by generating capital for renewable-energy and methane-emissions-reducing investments. The CCPI envisages the development of a voluntary market-based mechanism that aims to provide finance for investment in climate mitigation activities in the region and carbon offset opportunities for investors; i.e. it will be a new cooperative approach that facilitates upfront ‘carbon finance’ for the mitigation efforts rather than paying for carbon credits after the fact.
By providing finance, technology transfer and capacity-building to Caribbean nations the CCPI will promote investment in renewable energy and methane-reduction measures, thereby strengthening the economies of, and sustainable development in, the Caribbean region. Helping to ‘set a price on carbon’ emissions in the Caribbean will:
• Facilitate transformational change in the way energy services are provided in the Caribbean and the greening of the Caribbean energy sector;
• Generate ITMOs from and link with foreign carbon markets and, potentially, with national and sub-national cap-and-trade carbon markets;
• Strengthen the economies of, and sustainable development in, Caribbean states and dependent territories; and
• Increase the overall mitigation of global greenhouse-gas emissions.
Establishing the Caribbean Carbon Pricing Initiative is intended to provide the capital needed to set the Caribbean solidly on a low-carbon development path.
The CCPI will inter alia build upon two UNFCCC-registered PoAs under the CDM that were developed to generate carbon credits: the Petrotrin Oil Fields Associated Gas Recovery and Utilization PoA and the RE2Grid PoA, the first currently operating in Trinidad and Tobago, the second established in the Philippines but under consideration for use by renewable energy developers in Caribbean countries.