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Tradewatch
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The Official E-Newsletter of the Caribbean Export Development Agency • Vol. 8 No. 3 July 2014
INVESTMENT PROMOTION
Caribbean Export and CAIPA Push Green FDI
through UNCTAD Workshop
Green initiatives have been recognized as critical to the
socio-economic and environmental sustainability of the
Caribbean region. An environmentally conscious blueprint is
paramount to the formation of self-sufficient enterprises, which
not only are economically viable but have long term growth
potential. Establishing a relationship with foreign investors can
be a beneficial component in the development of this blueprint.
It was with this in mind, that the United Nations Conference on
Trade and Development (UNCTAD) conceptualised and organised
a workshop to inform regional IPAs on the best means of
attracting this crucial support. Caribbean Export, in partnership
with the Caribbean Association of Investment Promotional
agencies (CAIPA), facilitated the participation of representatives
from the IPAs of Latin America and the Caribbean (LAC) in
this workshop, officially entitled “The Regional Workshop
on Fostering Green FDI Opportunity in Latin America and
the Caribbean (LAC)”. The symposium, which attracted the
participation of 50 representatives from 25 LAC territories, took
place in Bogota, Colombia from May 6-8, 2014.
The region’s IPAs are taking proactive measures to ensure
that they remain relevant and competitively equipped to attract
FDI, which might otherwise go to other regions in the world, for
example to Emirates. The agencies under CAIPA in particular
have been involved in several Caribbean Export interventions
aimed at foreign direct investment promotion.
Agencies represented at the workshop included the
Antigua & Barbuda Investment Authority (ABIA), Investment
and Development Corporation Suriname (IDCS), the Grenada
Industrial Development Corporation (GIDC), Centre for Export
and Investment in the Dominican Republic (CEI-RD), CFI Haiti, St.
Kitts Investment Promotion Agency (SKIPA), the Guyana Office
for Investment (GO-Invest), Jamaica Promotions Corporation
(JAMPRO), the Ministry of Economic Development for Curacao,
Invest in Trinidad and Tobgo (invesTT) and the National
Investment Promotion Agency for St Lucia (Invest Saint Lucia).
According to the Financial Times, in 2013 US$13.3bn was invested
in the LAC region for sustainable resource development; approximately
90% of these projects were based in Latin American. This data, as noted
by Executive Director, Pamela Coke Hamilton, “highlights the significant
room for growth that is available to the Caribbean in this sector.” The
region as a whole possesses remarkable natural resources, which have
the potential for use in renewable energy initiatives. The onus is not only
on the private and public sector entities that design the mechanisms to
take advantage of these resources to market them, but also on the IPAs
of the region to seek financial support for these innovative initiatives.
The sessions proved to be highly informative, remaining relevant
to the Caribbean context and taking into consideration the specific
challenges which investment promotion agencies face. Content included
presentations on the best practices for FDI attraction into the renewable
energy sector. Examples were cited from the operational approaches
of agencies such as CENER, the Renewable Energy Centre in Spain, the
Portland Development Commission of Oregon in the USA and ApexBrasil,
who have attained tremendous financial endorsement for their projects.
In addition, the benchmarks for a successful promotional strategy were
established using examples from renewable energy investors, such as the
Acciona Group and Juwi Energías Renovables. From these presentations,
the participants were able to ascertain the current global trends in low
carbon investment and techniques on shaping the promotion strategy
for an IPA. This new knowledge informed the interactive session and
group exercises in which the participants engaged. The salient points
were then concretized by case studies and discussions with investors
on their decision-making processes. Finally, the participants were made
familiar with the infrastructure of renewable energy centres through site
visits and tours.
Renewable energy and sustainable business models are of priority
focus for the IPAs in the Caribbean given the financial barriers to
establishing renewable energy centres the region due to exorbitant
operational costs. Caribbean Export and CAIPA continue to collaborate
on interventions which will strengthen the capacity of their members
to attract FDI to the region, and also to firmly establish the Caribbean
region as an ideal location for green FDI investments.
(TW)
Participants of the UNCTAD Green FDI Workshop