From energy to a circular economy

THE EDITOR: For decades, our energy sector has driven national development – generating foreign exchange, driving exports, and supporting public services. Yet, the world is shifting. Global energy markets are rapidly pivoting toward sustainability and renewable sources.

The consequences of failing to diversify can cause economic stagnation, rising unemployment, and exposure to price shocks we cannot predict or prevent. Now is the time for TT to redefine its economic strategy – and the circular economy presents a bold and viable path forward.

A circular economy is designed to minimise waste and make the most of available resources. It stands in contrast to the traditional linear model of "take, make, dispose," by focusing instead on regeneration, reuse, recycling, and sustainability throughout the production cycle.

Around the world, the concept is gaining traction – but progress remains slow. The Circularity Gap Report 2024 highlights that only 7.2 per cent of the global economy currently operates on circular principles – a decline from 9.1 per cent in 2018.

In TT, efforts are underway to move the needle. One such initiative is the "Catalysing and Connecting the Circular Economy" project, supported by the Inter-American Development Bank and led by The Cropper Foundation.

This initiative brings together government agencies, civil society, and the private sector to promote circular practices across industries such as agriculture, waste management, energy, and manufacturing. It lays the foundation for systemic change by embedding sustainability into economic planning.

Additionally, the Circular City exhibition at the 2024 Trade and Investment Convention (TIC) offered a glimpse into the potential of circularity at work. Over 20 local organisations showcased real-world solutions – from upcycled consumer goods to biodegradable packaging and innovative waste-to-resource technology.

These examples demonstrate that the principles of a circular economy are not abstract ideals – they are already being realised by local innovators.

Beyond the environmental benefits, circularity presents a clear economic advantage. According to the World Economic Forum, transitioning to a global circular economy could unlock US$1 trillion annually by 2025, generate over 100,000 jobs, and prevent 100 million tons of waste each year.

For TT, this could mean new industries, reduced dependence on imports, and a more resilient workforce – especially for youth and rural communities.

Importantly, embracing a circular model can address multiple national priorities simultaneously: it tackles waste management, improves resource efficiency, fosters entrepreneurship, and enhances climate resilience. It also presents opportunities for micro, small, and medium enterprises (MSMEs), which are often excluded from traditional industrial models but can thrive in a circular framework through local sourcing, repair services, creative reuse, and innovation.

Economic diversification must become a strategic imperative. Incentivising circular innovation, updating waste management policies, funding green infrastructure, and integrating sustainability into education and skills training are essential steps.

We also need regulatory reform to support product life-cycle accountability, ban harmful single-use plastics, and reward companies that embed circular principles into their operations.

While the energy sector will remain part of our economy for the foreseeable future, the uncertainties surrounding our geopolitical dynamics prove that it is no longer strategic. The circular economy is not merely a policy option; it is a necessary evolution.

TT has the creativity, talent, and institutional capacity to lead the Caribbean in sustainable development. We must now muster the political will and collective vision to do so.

With the United Nations recently celebrating World Environment Day, this is about shaping a future that is environmentally responsible, socially inclusive, and economically secure. Let us move forward, boldly, and intentionally, toward a diversified, circular economy that benefits all our people.

DEOCHAND RAMJIT SINGH

via e-mail