2. The Sustainable Blue Economy in Trinidad and Tobago

2.1 Country context

Trinidad and Tobago is a small but high-income country, particularly when compared to other island nations in the Caribbean. The current ocean-based economy is dominated by the oil and gas sector. This dependence on a single sector has led to a ‘boom-and-bust’ economic cycle that is heavily reactive to, and dependent on, external market conditions and foreign exchange rates, with little resilience to global fluctuations. Given the increasing global shift towards renewable energy and the transition away from fossil fuel use, there is an increasing need for economic diversification. Other key ocean sectors, including tourism, fisheries, and ports and shipping, make significantly lower contributions to gross domestic product (GDP) but provide disproportionately higher levels of employment when compared with the oil and gas sector (see section 2.2). 

Trinidad and Tobago is a twin-island state, each with very different characteristics which must be considered in understanding the development of an SBE. The Tobago House of Assembly (THA), the devolved legislative body responsible for the island of Tobago, handles many of the governance responsibilities and plays a critical role. Tobago is much smaller than Trinidad, and relies on an annual fiscal allocation from central government to support development in the island. Regarding the blue economy, tourism is a much more prominent blue economy sector in Tobago, with the majority of international visitors travelling to the island along with domestic visitors from Trinidad. This places greater reliance on the health of marine ecosystems in Tobago where sensitive development alongside ecosystem protection measures are required. The artisanal fishing industry is also of greater significance to the communities in Tobago, with less reliance on the oil and gas sector although exploration is underway just off the coast of Tobago with an electromagnetic survey over 60 per cent complete at time of writing. The Government of the Republic of Trinidad and Tobago (GORTT), including the THA, have recognised the need to diversify the national economy and to increase economic resilience, particularly since the Covid-19 pandemic. National strategies including Vision 2030,^[1] Roadmap for Trinidad and Tobago Post Covid-19 Pandemic^[2] and the Tobago Roadmap to Recovery,^[3] highlight the opportunity for economic reformation to enhance social and environmental sustainability, aligned with the UN SDGs and other international commitments. However, economic diversification will place additional pressure on the marine area where space and resources are already subject to considerable demand and competition. This is further complicated by unregulated or illegal activities. Transitioning to an SBE will require addressing complex trade-offs in decision-making across policy areas and sectors, and a robust and coherent framework for management, regulation, enforcement and monitoring.

Trinidad and Tobago is party to the key international conventions relating to the marine environment, including the Convention for Biological Diversity (CBD), the Paris Agreement, and the UN Convention on the Law of the Sea (UNCLOS) as well as being signatories to the High Ambition Coalition (HAC) for Nature and People and the Global Ocean Alliance for ‘30by30’, demonstrating commitments to ocean sustainability. Trinidad and Tobago also maintains a range of regional and other supra-national co-operative alliances relevant to the SBE (see Appendix 1).

The coastal zone of Trinidad and Tobago features biologically diverse ecosystems, including coral reefs, seagrass beds, rocky shores, beaches, mudflats and mangrove swamps. These provide a range of provisioning, regulating, cultural and supporting services that include erosion control, storm protection, floodwater retention, water quality maintenance and climate regulation. However, there are environmental challenges that also have economic and social impact, threatening water and food security, livelihoods and coastal settlements. Issues identified via stakeholder consultation undertaken as part of the Draft ICZM Policy Framework 2020 development, included (see Appendix 3 for a complete list):

• habitat damage and loss from development or unsustainable practices;
• unplanned and unregulated development;
• pollution (from land, ships, and oil and gas leakage);
• over exploitation (e.g. fisheries);
• conflicts over use/competition for space; and
• loss of public access to the coast.

Trinidad and Tobago’s coastal ecosystems play a critical role in protecting the shorelines of both islands. A 2013 study estimated that the average annual loss due to floods and storms was US$55.7 million.^[4] The Trinidad and Tobago Draft ICZM Policy Framework 2020 states that coastal protection services provided by coral reefs, mangroves and marshes are valued at US$49.6 million annually, providing natural disaster protection especially in the context of climate change, and also supporting recreation and tourism-based activities valued at up to US$390,428 per hectare per year.^[5]

Despite Trinidad and Tobago’s dependency on healthy marine ecosystems, and the services and resources they provide, there is only one legally gazetted marine protected area (MPA), with a second proposed, both of which are found in Tobago: the Buccoo Reef/Bon Accord Lagoon (also a Ramsar site) (1,287 hectares), and a proposed North-East Tobago MPA (59,280 hectares). Tobago’s North-East region, a ridge-to-reef ecosystem including a marine area of 68,384 hectares, was also declared a biosphere reserve by the UNESCO Man and the Biosphere Programme in 2020.

Many national laws and policies relating to marine management need updating, with several new legislative and policy instruments in draft, and/or pending cabinet and parliamentary approval (see Appendix 2). A lack of policy coherence or framework for integrated marine management means that the wealth of ocean resources in the EEZ are overexploited or subject to unsustainable practices that threaten economic, social and environmental resilience. Transitioning to an SBE will help Trinidad and Tobago steer national and local economic development towards sustainable and equitable ocean wealth.

2.2 Key ocean-based sectors in Trinidad and Tobago

Oil and gas

Trinidad and Tobago is the largest producer of oil and natural gas (including petrochemicals) in the Caribbean, and the sector represents around 40 per cent of the country’s GDP and over 80 per cent of export revenues.^[6] Given that sector’s dominance, less emphasis is given to ocean-based sectors, particularly fisheries and tourism. Notably, the dominance of the oil and gas sector in terms of revenue is disproportionate to its contribution to employment, representing less than 5 per cent of national employment (approximately 10,600 people)^[7] Economic reliance on this sector presents challenges for SBE transition, particularly as it represents a sector in long-term decline with disproportionate benefits across society. However, the revenue it generates presents Trinidad and Tobago with short- to mid-term opportunities to support the funding of initiatives which could accelerate progress to an SBE and drive economic diversification in the long-term. The skills and infrastructure associated with the sector also provide an asset for development of other sectors such as offshore renewable energy.

Maritime and ports

The maritime and ports sector in Trinidad and Tobago includes diverse activities, including port operations, ship repair and dry docking, and marine services (offshore bulk trans-shipment, bunkering, cold stacking,^[8] maritime logistics and open ship registry). Trinidad and Tobago has two major cargo ports, both in Trinidad: Point Lisas and Port of Spain. The country also has liquid and dry bulk handling facilities, as well as liquefied natural gas (LNG) handling facilities. Due to its geography, Trinidad’s ports are well positioned for trans-shipment and cargo routes, sitting 2,200km from the Panama Canal. However, a lack of investment in infrastructure, equipment and technology, as well as slow processing and customs procedures, means that these ports may be less competitive than others in the region. They also lack sufficient infrastructure to cope with future shipping needs, such as the capacity for larger ships or the provision of adequate waste management facilities at ports and marinas. There are also concerns over environmental performance and the impact of piracy on port activities. Investing in digitisation and automation, as with the Single Economic Window^[9] initiative, represents a key opportunity for the nation, with other opportunities including the creation of a regional hub for bunkering (for example, alternative fuels such as LNG, ammonia and hydrogen, which would support a transition away from oil and gas dependency).

Tourism

Unusually for a Caribbean island, tourism represents just 7.9 per cent of total national GDP^[10] generating around US$2.4bn each year. Tobago has a higher dependence on tourism revenues than its neighbour (around 10 per cent of the national GDP raised by Tobago alone)^[11] and receives around 60–70 per cent of all cruise ship arrivals to Trinidad and Tobago.^[12] Given the relatively low contribution to GDP, employment from tourism is high, estimated at 62,100 people in 2019,^[13] making the industry and dependent livelihoods particularly vulnerable to external market forces and shocks. This is especially true for Tobago where tourism accounts for approximately 25 per cent of employment.^[14] The tourism sector was hugely affected by Covid-19. Challenges remain in growing the sector including a lack of differentiation within the Caribbean destination market, changing customer preferences, and a slow transition to digitisation. Sargassum blooms are a considerable threat, with rotting vegetation off-putting to potential visitors as well as bringing high clean-up costs. Ecotourism and community tourism present a significant opportunity for both islands, though these rely heavily on appropriate management to ensure a healthy and thriving marine environment. The coral reefs, pristine beaches and one of the largest leatherback turtle breeding sites are significant attractions for visitors, national and international. There is potential for expansion of yachting services as well as sustainable expansion of the cruise sector (particularly in Tobago).

Fisheries

The fisheries sector accounted for 0.6 per cent GDP in 2018,^[15] although this is perceived as an under-valuation due to a lack of consistent catch data, particularly since landings and exports from locally flagged vessels only are reported. There are many foreign-flagged vessels landing catch in Trinidad that is then exported to the US. Although profits return to the respective countries, Trinidad and Tobago benefit from associated processing fees and taxes. Trinidad and Tobago is a net importer of fish: in 2019, estimated exports amounted to US$26.1 million, while imports were US$43.6 million.^[16] This is largely driven by consumer taste for species beyond national fish stock and, as with oil and gas, places a dependency on external market forces. Fisheries also represent a disproportionately large employment sector given direct economic contribution, estimated at 50,000 people.^[17] The contribution to subsistence is also not reflected in current economic valuations of the sector.

There are challenges related to out-of-date fisheries legislation, resulting in a lack of effective regulation or management. Illegal, unregulated and unreported (IUU) fishing  is problematic, as well as the use of inappropriate equipment and a highly industrialised coastal area causing environmental damage, and high bycatch rates and waste. Artisanal fishers, the largest fisheries subsector, are particularly vulnerable to these challenges and are increasingly squeezed out of the marine space. The internal market for fish is dominated by seven species which are currently overexploited. With 100 species in national waters, there is an opportunity to reduce pressure on key fish stocks and to enhance the national market by diversifying consumer preference, including through public campaigns.

2.3 Emerging sectors and opportunities

A number of emerging sectors and opportunities for growth in existing sectors could play a role in the transition to an SBE in Trinidad and Tobago, including the following.

• Offshore renewables, particularly offshore wind – a recent assessment conducted by the University of West Indies (UWI) found the potential to generate 25GW from offshore wind in the Trinidad and Tobago EEZ.^[18]
• The development of the ecotourism sector –  the Ministry of Tourism is already drafting new policies for community tourism and ecotourism. Castara Retreats in Tobago demonstrates the huge potential for the community ecotourism model as part of a sustainable tourism sector in Trinidad and Tobago.
• Yachting and other recreational boating activities. The once burgeoning yachting sector has declined since its prime in the early-2000s, outcompeted by neighbours such as Grenada, subjected to onerous bureaucracy (there are over a dozen forms to enter Trinidad and Tobago), and heavily impacted by crime. There has been a significant increase in recreational boating activities but they are poorly regulated and not co-ordinated. There has been no clear policy nor development of infrastructure to support growth in the sector, such as wastewater facilities or appropriate management of the use of anti-fouling paints.
• Diversification of the fisheries sector, including campaigns to change consumer tastes to expand the number of species or diversifying use of fish products such as fish oil or silage for agricultural purposes; and targeting new stocks, such as the invasive lionfish.
• Mariculture is in the very early stages of development, and the IMA is currently trialling mariculture for snapper.
• Offshore infrastructure decommissioning as oil and gas facilities come to the end of their operational life, including the dismantling and recycling of materials, which will require additional regulations.
• Carbon capture and storage (CCS) – Ministry of Energy and Energy Industries, the UWI and the University of Trinidad and Tobago (UTT) are to identify reservoirs both on land and in marine areas to accelerate the implementation of CCS in reservoirs and depleted oil fields.^[19]
• Research and innovation, such as the Maritime Blue Innovation Technology Parks being considered in Tobago.

While there is plenty of potential for diversification within the ocean-based economy, expanding activities in the marine area will increase competition for space, which is already the source of conflicting priorities across multiple sectors. Emerging sectors also require new legislation and regulatory frameworks that complement an integrated marine management approach, as well as consistent monitoring and reporting, to ensure sustainability.

2.4 Existing support for the SBE transition

In his 2019 address to the Caribbean Development Bank’s board of governors, the Honourable Dr Keith Christopher Rowley MP, Prime Minister of the Republic of Trinidad and Tobago, called on the region to ‘harness the true potential of the blue economy’, highlighting the Caribbean’s need to ‘leverage its coastal and marine resources to generate sustained growth, unlocking the great potential of fishing, tourism and shipping industries’. More broadly, national policies and strategies recognise the need for economic diversification and development that are aligned with UN SDGs and deliver economic, social and environmental sustainability.

There are legislative and policy instruments in draft, and/or pending cabinet and parliament approval, that would support and promote the transition to an SBE for Trinidad and Tobago and indicate the country’s commitment to improving integrated marine management (see Appendix 2 for a list of key laws and policies relevant to an SBE, and section 3.3 for more detail about related challenges and opportunities). However, these initiatives are not given priority, leaving critical gaps in the governance framework.

There have been several recent consultations and resulting reports that aim to articulate opportunities and recommendations for Trinidad and Tobago to transition to an SBE, notably the Blue Economy Innovation Action Plan,^[20] A Sustainable Blue Economy: Trinidad and Tobago,^[21] and Tobago Blue Economy Roadmap.^[22] There is, however, no unified vision for the SBE across Trinidad and Tobago. So, forthcoming legislation and strategies may lack the coherence needed to deliver sustainability across these sectors and to manage competing priorities efficiently and effectively.

Footnotes

^{[1]          Government of the Republic of Trinidad and Tobago (2016). Vision 2030: The National Development Strategy of Trinidad and Tobago 2016-2030. Ministry of Planning and Development.}

^{[2]          Government of the Republic of Trinidad and Tobago (2020). Roadmap for Trinidad and Tobago Post Covid-19 Pandemic. Ministry of Planning and Development.}

^{[3]          Tobago House of Assembly (THA) (2020). Tobago Roadmap to Recovery: Recommendations for rebuilding the Tobago Society in 2020.}

^{[4]          Inter-American Development Bank (IDB) (2013). Country disaster risk evaluation of Trinidad and Tobago (ATN/OC-12349-TT): Draft report assets exposure model for risk analysis exposition model proxy, prepared for Ministry of National Security, Office of Disaster Preparedness and Management (OPDM), April, 2013, IDB.}

^{[5]         Government of the Republic of Trinidad and Tobago (2016). Fifth National Report to the United Nations Convention on Biological Diversity. Port of Spain, Trinidad.}

^{[6]          Ogeer, N. (2020). Covid-19 Impact on the Oil and Gas Sector. Commonwealth Secretariat.}

^{[7]          Central Bank of Trinidad and Tobago (2022). Summary of economic indicators report. https://www.central-bank.org.tt/sites/default/files/reports/summary-economic-indicators-bulletin-june-2022-20220310.pdf}

^{[8]          ‘Cold stacking’ is when an oil rig is shut down, with the crew reduced to zero or a few key individuals. The rig is then ‘stored’ in a harbour, shipyard or designated area offshore until it needs to be activated. This is as opposed to ‘warm’ or ‘hot’ stacking, when a rig is idle but remains manned and deployable while stored.}

^{[9]          The Single Electronic Window (SEW) for Trade and Business Facilitation Project, branded as TTBizLink, is an IT-based trade solution to streamline and digitise import, export and transit-related regulatory requirements.}

^{[10]        World Travel and Tourism Council (2022). Travel and Tourism in the Caribbean: Prospects for Growth. https://wttc.org/Portals/0/Documents/Reports/2022/Travel-and-tourism-in-the-caribbean.pdf}

^{[11]        Tobago House of Assembly (THA) (2022). Tobago House of Assembly Budget Statement for Fiscal – 2023.}

^{[12]        Inter-American Development Bank (IDB) (2021). Trinidad and Tobago: A blue economy innovation action plan v1.0.}

^{[13]        Knoema (no date). ‘Trinidad and Tobago – Contribution of travel and tourism to employment’, webpage. https://knoema.com/atlas/Trinidad-and-Tobago/topics/Tourism/Travel-and-Tourism-Total-Contribution-to-Employment/Contribution-of-travel-and-tourism-to-employment}

^{[14]        James, C. (2020, October 15). Tobago’s tourism needs more incentive to realise full potential. Trinidad and Tobago Newsday. https://newsday.co.tt/2020/10/15/tobagos-tourism-needs-more-incentive-to-realise-full-potential/}

^{[15]        Food and Agriculture Organisation of the United Nations (FAO) (2018). Fisheries and aquaculture country profiles: The Republic of Trinidad and Tobago.}

^{[16]        Food and Agriculture Organisation of the United Nations (FAO) (2019). Globefish market profile – 2019.}

^{[17]        Food and Agriculture Organisation of the United Nations (FAO) (2019). Fishery and Aquaculture Country Profiles: Trinidad and Tobago, 2018. https://www.fao.org/fishery/en/facp/tto}

^{[18]        Government of the Republic of Trinidad and Tobago (GORTT) (2022, November 29). ‘Launch of The Roadmap for a Green Hydrogen Economy in Trinidad and Tobago’. Press release. https://www.energy.gov.tt/wp-content/uploads/2022/11/Media-Release-Launch-of-The-Roadmap-for-a-Green-Hydrogen-Economy-in-Trinidad-and-Tobago.pdf}

^{[19]        Khan, F. (2021, February 1) Address by Senator the Honourable Franklin Khan, Minister of Energy and Energy Industries. Speech delivered at Energy Chamber’s Energy Efficiency and Renewables Virtual Conference 2021. www.energy.gov.tt/wp-content/uploads/2021/02/Address-by-Senator-the-Honourable-Franklin-Khan-at-the-energy-chambers-enegy-efficiency-and-renewables-virtual-conference-2021.pdf}

^{[20]        Inter-American Development Bank (IDB) (2021). Trinidad and Tobago: A Blue Economy Innovation Action Plan v1.0.}

^{[21]        UNESCO-IOC, IMA (2021). A Sustainable Blue Economy for Trinidad and Tobago. UNESCO (IOC Technical Series 166/ICAM Dossier no 16).}

^{[22]        McCue, J (2022). Tobago blue economy roadmap: Study for the Inter-American Development Bank. Unpublished report for the Inter-American Development Bank.}