Trinidad & Tobago urged to consider carbon tax to aid industry
A UK-backed report by a Caribbean scholar says Trinidad & Tobago could create a national carbon tax, drawing on examples from Colombia, Singapore, and Norway. The proposal is framed as a way to support industrial competitiveness in the oil-rich, high per-capita emitting country.
A report backed by the British High Commission in Port of Spain and authored by University of the West Indies senior fellow Preeya Mohan examines how Trinidad & Tobago might price carbon. The country emits under 0.1% of global greenhouse gases but ranks high per person, and roughly 13.5% of its GDP is exposed to the EU’s CBAM.
Mohan argues the government’s preference for a carbon tax over an emissions trading system fits an economy dominated by a few large industrial emitters. She points to Colombia’s offset flexibility, Singapore’s predictable increases, and Norway’s high price to encourage CCS.
A carbon tax could affect Trinidad & Tobago’s households, workers, and energy-intensive firms through higher fuel or input costs, while potentially shielding exporters from EU border charges. Revenue use may shape whether the policy is seen as fair or burdensome. Industrial communities and lower-income groups may be especially sensitive to price changes, though offsets or phased increases could soften impacts. The proposal may also influence regional debates about how small, high-emitting economies balance competitiveness with climate action.