CARICOM’s trade body is set to approve an extension of the suspension of a tax on Jamaica’s importation of nine renewable and energy efficient technologies, including lithium-ion batteries, from outside the region.

A two-year suspension of the Common External Tariff (CET) is due to end December 31.

But Jamaica’s energy ministry has asked the Council for Trade and Economic Development (COTED) to keep the suspension in place for another two years, from January 1, 2024 – December 31, 2025.

That request was given favourable consideration at last week’s meeting of technical officials ahead of the November 27-28 meeting of CARICOM trade ministers under COTED, which has the authority rule on the matter.

The CET is applied by all participating countries on select products. It effectively raises the price of imports from outside of the region, giving internally manufactured products a competitive advantage.

The treaty that governs CARICOM allows for a suspension for a variety reasons, including in instances where there is limited supply of product critical to a country’s economic development.

Jamaica’s justification for the request included reference to the national energy policy, reducing carbon emissions and in particular, the goal to have 50 per cent renewable energy for electricity generation by 2030.

It also pointed to the recent adoption of the electric vehicle and the energy efficiency and conservation policy and guidelines for public facilities, specifically for schools and hospitals.

Jamaica said the waivers would also assist consumers to finance the investment cost and increase the growth rate of installations and further that the targeted technologies are not being produced in Jamaica and the quantity of any of the products being produced does not satisfy the demand of the Jamaican market.

The energy ministry said it consulted with private and public sector stakeholders – the Jamaica Renewable Energy Association, the Consumer Affairs Commission, the Bureau of Standards Jamaica; the Jamaica Customs Agency and the Ministry of Finance and the Public Service.

Jamaica’s electricity sector mix was supplied by 34 per cent fossil fuels, 53 per cent Liquefied Natural Gas and 13 per cent renewable energy in 2022, according to the ministry.

Renewable energy and energy efficient technologies on Jamaica’s priority list

1. Compact fluorescent lamps

2. Air conditioning and chillers with rotary screw compressors

3. (Electric) vapour absorption refrigeration systems

4. Thermal storage air conditioning systems.

5. Ice thermal storage air condition systems

6. Solar water heating mounting accessories

7. Other accumulators – rechargeable batteries for renewable energy systems (photovoltaic systems)

8. Absorption refrigeration equipment and materials utilising solar energy

9. Lithium-ion batteries.

Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.