Fighting Poverty With Renewable Energy in Grenada – The Borgen Project

Report on Grenada’s Socio-Economic Challenges and Renewable Energy Transition

1.0 Introduction: Poverty and Economic Vulnerability

Grenada, a Small Island Developing State (SIDS) in the Eastern Caribbean, faces significant socio-economic challenges that impede its progress toward achieving the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty). With a population of approximately 113,000, nearly half of whom are under 30, the nation has experienced a rise in extreme poverty from 2.4% to 3.5% between 2015 and 2019. This issue disproportionately affects the youth, who constitute two-thirds of this demographic.

The nation’s economic structure presents a primary obstacle to sustainable development. Key vulnerabilities include:

• A small, service-based economy heavily reliant on tourism and agriculture.
• High susceptibility to external shocks, such as the COVID-19 pandemic and climate-related disasters, which directly impacts progress on SDG 8 (Decent Work and Economic Growth) and SDG 13 (Climate Action).
• A prevalence of low-skilled labor, offering limited income prospects and perpetuating economic instability for a large portion of the population.

2.0 Energy Sector Analysis and Impact on Sustainable Development

2.1 Dependency on Imported Fossil Fuels

Grenada’s energy sector is a critical barrier to sustainable development. Over 98% of the nation’s energy is derived from imported fossil fuels. This dependency directly undermines the achievement of SDG 7 (Affordable and Clean Energy) and creates a cascade of negative socio-economic impacts.

2.2 Consequences for SDG Achievement

The reliance on foreign fossil fuels creates systemic challenges that hinder progress across multiple SDGs:

• Impact on SDG 1 (No Poverty): High and volatile energy costs, driven by international market fluctuations and import taxes, reduce disposable income for households. This limits spending on essential services like healthcare (SDG 3) and education (SDG 4) and traps families in a cycle of poverty.
• Impact on SDG 8 (Decent Work and Economic Growth): Supply chain disruptions and high operational costs create structural barriers for small and family-owned businesses, which are crucial for local economies.
• Impact on SDG 13 (Climate Action): The continued use of fossil fuels exacerbates climate change, increasing the frequency and intensity of climate-related disasters to which Grenada is highly vulnerable.

3.0 Strategic Transition to Renewable Energy for SDG Achievement

3.1 National Policy and Vision

The Government of Grenada has identified the transition to renewable energy as a core strategy for national development. The “Grenada Vision 2030” initiative and its associated “National Energy Policy” establish a target of achieving 100% renewable energy by 2030. The policy’s vision is to “build a competitive green economy that will be affordable and provide universal access to resources to improve the living standards for current and future generations.” This ambition directly aligns with the principles of SDG 7, SDG 9 (Industry, Innovation and Infrastructure), and SDG 11 (Sustainable Cities and Communities).

3.2 International Support and Finance

Grenada’s transition is supported by access to international climate finance mechanisms, such as the Green Climate Fund (GCF). These resources are critical for accelerating investment in renewable energy systems and energy efficiency infrastructure, fostering progress toward SDG 17 (Partnerships for the Goals).

4.0 Socio-Economic Benefits of Renewable Energy Aligned with SDGs

Investing in the renewable energy sector offers a multi-faceted approach to achieving sustainable development in Grenada. The anticipated benefits are directly linked to several SDGs:

1. Decent Work and Economic Growth (SDG 8): The development of a domestic renewable energy industry creates sustainable, skilled jobs in technology, installation, and maintenance, thereby improving income capacity and diversifying the economy.
2. Affordable and Clean Energy (SDG 7): Local energy production promotes self-sufficiency, stabilizes costs by eliminating import taxes and foreign market dependency, and ensures wider access to affordable energy for all citizens.
3. No Poverty (SDG 1): Lower energy costs increase household disposable income, enabling greater investment in health, nutrition, and education. It also reduces operational costs for local businesses, supporting community-level entrepreneurship.
4. Industry, Innovation and Infrastructure (SDG 9): The transition requires building modern, resilient energy infrastructure, which attracts foreign investment and stimulates technological advancement within the nation.

5.0 The Role of Regional Institutions in Advancing SDGs

5.1 Case Study: The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE)

The Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE) serves as a key implementation partner in the region’s energy transition. As an intergovernmental institution, CCREEE’s mission is to promote sustainability and reduce fossil fuel dependency, directly supporting the achievement of SDG 7 and SDG 13.

CCREEE’s initiatives demonstrate a holistic approach to sustainable development:

• Education and Skills Development: The organization provides professional training for green-skill jobs, contributing to SDG 4 (Quality Education) and SDG 8 (Decent Work and Economic Growth).
• Policy and Strategy: It functions as an advisory body to regional governments, helping them formulate effective energy policies to meet targets such as “Grenada Vision 2030.”
• Partnerships and Advocacy: By collaborating with governments and regional bodies like CARICOM, CCREEE exemplifies the importance of SDG 17 (Partnerships for the Goals) in driving systemic change.

6.0 Conclusion: Renewable Energy as a Catalyst for Sustainable Development

The transition to renewable energy represents a fundamental tool for Grenada to achieve comprehensive and sustainable poverty reduction. This strategic shift is not merely an environmental objective but a central pillar for economic resilience and social equity. By focusing on renewable energy, Grenada can simultaneously address the interconnected challenges of poverty (SDG 1), energy access (SDG 7), economic stagnation (SDG 8), and climate vulnerability (SDG 13), thereby creating a more sustainable and prosperous future for its citizens.

Analysis of SDGs in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty

  The article directly addresses poverty in Grenada, noting that extreme poverty has worsened, particularly among the youth. It links poverty to the nation’s economic structure, energy costs, and vulnerability to external shocks, and presents renewable energy as a tool for “sustainable poverty reduction.”

• SDG 7: Affordable and Clean Energy

  This is the central theme of the article. It highlights Grenada’s over-reliance on imported fossil fuels (over 98%) and the resulting high and unstable living costs. The solution proposed is a transition to 100% renewable energy by 2030, focusing on affordability, universal access, and energy efficiency.

• SDG 8: Decent Work and Economic Growth

  The article connects the development of a renewable energy sector to economic diversification and job creation. It states that the industry creates “sustainable, skilled jobs” and “green-skill jobs,” which can improve income prospects and move the economy away from its vulnerable reliance on tourism and agriculture.

• SDG 13: Climate Action

  The article links Grenada’s dependency on fossil fuels to “worsening climate-related challenges” and “environmental devastation.” The transition to renewable energy is presented as a key strategy to mitigate climate-related shocks and integrate climate change measures into national policy, as evidenced by the “Grenada Vision 2030” plan.

• SDG 17: Partnerships for the Goals

  The article mentions several partnerships crucial for Grenada’s energy transition. This includes access to international funds like the Green Climate Fund (GCF) and the role of intergovernmental institutions like the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), which collaborates with Caribbean governments and regional bodies like CARICOM.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 1: No Poverty

   • Target 1.1: By 2030, eradicate extreme poverty for all people everywhere. The article’s focus on the rise of extreme poverty in Grenada from 2.4% to 3.5% directly relates to this target.
   • Target 1.5: By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters. The article discusses how Grenada’s economy is vulnerable to shocks like the COVID-19 pandemic and “increasingly frequent climate-related disasters,” and how renewable energy can mitigate these shocks.

2. SDG 7: Affordable and Clean Energy

   • Target 7.1: By 2030, ensure universal access to affordable, reliable and modern energy services. The “Grenada Vision 2030” initiative aims to “provide universal access to resources,” and the article emphasizes how cheaper energy would benefit impoverished groups.
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. This is the core proposal of the article, highlighted by Grenada’s national policy to establish a “100% renewable energy target by 2030.”
   • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. The article mentions that the “Grenada Vision 2030” project focuses on “enhancing energy efficiency infrastructure.”

3. SDG 8: Decent Work and Economic Growth

   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. The article advocates for diversifying Grenada’s economy by developing the renewable energy industry to reduce reliance on tourism and agriculture.
   • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The article states that the renewable energy industry “creates sustainable, skilled jobs” and supports the creation of “green-skill jobs,” directly contributing to this target.

4. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The “Grenada Vision 2030” and “Grenada’s National Energy Policy” are cited as examples of the government integrating climate action into its long-term planning.

5. SDG 17: Partnerships for the Goals

   • Target 17.7: Promote the development, transfer, dissemination and diffusion of environmentally sound technologies to developing countries. The work of CCREEE, which functions as a “technical hub” for renewable energy and builds “public knowledge in clean energy and related technologies,” directly aligns with this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. SDG 1: No Poverty

   • Indicator 1.1.1: Proportion of the population living below the international poverty line. The article provides specific data points for this indicator, stating that extreme poverty rose from 2.4% in 2015 to 3.5% in 2019.

2. SDG 7: Affordable and Clean Energy

   • Indicator 7.1.1: Proportion of population with access to electricity. This is implied by the goal of “universal access to resources” and the discussion of how energy costs can “exclude remote or impoverished groups from basic resources.”
   • Indicator 7.2.1: Renewable energy share in the total final energy consumption. The article provides a baseline (less than 2%, as over 98% comes from fossil fuels) and a clear target (100% by 2030), making this a key measurable indicator.

3. SDG 8: Decent Work and Economic Growth

   • Implied Indicator: Number of green-skill jobs created. While not a formal UN indicator, the article’s emphasis on creating “sustainable, skilled jobs” and “green-skill jobs” through organizations like CCREEE implies that tracking the number of such jobs would be a relevant measure of progress.

4. SDG 13: Climate Action

   • Indicator 13.2.1: Number of countries that have communicated the establishment or operationalization of an integrated policy/strategy/plan which increases their ability to adapt to the adverse impacts of climate change. The article explicitly mentions “Grenada Vision 2030” and “Grenada’s National Energy Policy” as such plans.

5. SDG 17: Partnerships for the Goals

   • Implied Indicator: Amount of international funding mobilized for renewable energy projects. The mention of access to “international funds and climate finance mechanisms, such as the Green Climate Fund (GCF)” implies that the amount of funding secured would be a key indicator of successful partnerships.

4. Summary Table of SDGs, Targets, and Indicators

Source: borgenproject.org