The United States is stepping in to fill the gap left by Venezuela’s PetroCaribe, providing financial support for Caribbean nations seeking clean energy solutions. The Caribbean boasts significant solar and wind resources that, unlike cheap oil, are expected to be sustainable for millions of years.
Recently, the White House shared an update (credit to Boz for highlighting it on Twitter, where he’s probably drafting a more insightful commentary on the matter):
Today, President Obama met with leaders from the Caribbean at a U.S.-CARICOM Summit in Kingston, Jamaica. The discussions centered around enhancing energy security, lowering energy expenses, and combating climate change. Key initiatives include:
Clean Energy Finance Facility for the Caribbean and Central America (CEFF-CCA): The U.S. is set to introduce a $20 million facility aimed at promoting investment in clean energy projects.
Clean Energy Financing: Earlier this year, OPIC established a specialized finance and insurance team to propel the development of renewable energy in the Caribbean. OPIC is in the later stages of negotiations to fund a 20 MW solar farm in Jamaica and has already pledged support to Jamaica’s largest private wind farm, a 36 MW facility located in Malvern, St. Elizabeth Parish. OPIC is actively seeking new opportunities to back solar and wind projects both in Jamaica and the broader Caribbean region.
Transitioning to a Clean Energy Economy: The Department of Energy has brought together stakeholders from the U.S. and Caribbean regions to explore opportunities in clean energy, efficiency, electricity generation diversification, clean transportation, and energy education at the Caribbean Clean Energy Technology Symposium held in St. Thomas in March.
Greening Tourism: The Caribbean Hotel Energy Efficiency and Renewables (CHEER) initiative aims to support projects that enhance energy and water efficiency and facilitate the sharing of best practices within the hotel and tourism sector. USAID is also launching a complementary project focusing on the Eastern Caribbean to develop new financial instruments for energy efficiency and renewable sources.
I have my doubts about PetroCaribe, as I’m not a fan of initiatives that may inadvertently encourage countries or communities grappling with poverty to deepen their reliance on fossil fuels. Oil prices are likely to rise over time, and even if they don’t, burning fossil fuels exacerbates climate change and increases dependency on global trade, which poses significant risks for small island nations.
While I recognize that the U.S. has its own interests in mind—seeking to gain favor with small nations that hold votes in the UN and OAS, as well as trying to create new markets for large solar and wind corporations—I can’t help but feel that if this is the main critique, then we could be headed in the right direction. A world where such an issue exists would be a world I would be pleased to reside in.
This can be seen as a favorable outcome stemming from PetroCaribe. I can’t prove my theory, yet I suspect that without the competition for regional allegiance from energy-abundant Venezuela, the U.S. wouldn’t be engaging in this effort right now. However, given the competitive landscape, this relatively intriguing initiative has emerged.
This situation underscores the disappointment surrounding the Venezuelan revolution, which was marred by hypocrisy and corruption. The fundamental concept of a “mundo pluripolar” is indeed a worthwhile one.