Achieving a rapid decarbonization of the energy sector in Saint Kitts and Nevis Accelerate the transition towards 100% renewable electricity generation and 100% high energy efficiency public buildings in Saint Kitts and Nevis. Note: Disbursement data provided is cumulative and covers disbursement made by the project Agency. According to the ‘Global Energy Transformation: Roadmap to 2050’ report by the International Renewable Energy Agency (IRENA)[1], the transition to renewable energy will significantly improve the global socio-economic footprint of the energy system. The report forecasted that globally by 2050, the decarbonization of the energy system will generate a 15% increase in welfare, one percent increase in gross domestic product (GDP), and 0.1% in employment. Impacts on specific economies may differ based on potentials, national endowment, and current economic output. In St. Kitts and Nevis, a tourism-based economy that relies on petroleum imports, a positive impact can be expected for the balance of payments and the GDP if the tourism sector capitalizes the benefits of a country with 100% green electricity. Moreover, gains in welfare from the energy transition will further emphasize the impact in GDP in the long run. Social benefitsIn terms of social benefits, through the introduction and expansion of sustainable energy sources, the project will contribute to St. Kitts and Nevis` transition to a low-carbon environment, reducing air pollution and CO2 emissions and thus improving air quality for the citizens of the country. This has the co-benefit of improving citizen’s health and lowering associated health care costs and potential death rates. For employment, the energy transition as the one proposed in this project is also expected to generate positive impact in almost all regions and countries, although it will fluctuate over time. The expected impact of the measures to be proposed by this project will be assessed in a dedicated deliverable, where redistributional aspects of the transition will be considered (see output 1.2).Economic benefitsIn terms of economic benefits, Saint Kitts and Nevis currently spends around 5% of its GDP on fuel imports annually, and it highly depending on energy imports with the risks of high volatility and external price shocks (as currently seen in 2022 due to the war in Ukraine). St. Kitts and Nevis have an abundance of renewable energy resources. Investing into renewable energy sources opens new opportunities for the local economy and job seekers. Although the introduction renewable energy technologies and energy efficiency measures requires imports and thus also substantial infrastructure investments, in the medium- to long-term the transition will make the country less dependent on global oil prices and external price fluctuations and crises. Over time this will support the fiscal health of the Government of Saint Kitt and Nevis, as it won’t have to provide such significant fuel subsidies. A reduced dependency on fossil fuel imports will slowly reduce investment uncertainties, which in turn should lead to a more favourable investment environment, lowering interest rates and expected short-term returns, and making long-term investments more attractive. In addition, the transition to clean energy is likely to create a new market for electro-mobility (and the associated charging infrastructure) in Saint Kitts and Nevis.Environmental benefitsIn terms of environmental benefits, use of fossil fuel-based energy generation is reduced and shifts to sustainable energy solutions, including renewable energies, which decreases the demand for fossil fuels, mainly diesel and fuel oil in St. Kitts and Nevis. Eventually, this leads to a reduced environmental footprint of electricity sector, which is expressed in mitigated GHG emissions (tCO2e/a) and renewable energy capacity installed (MW). At the same time a shift to sustainable energy solutions furthers resource efficiency and circular economy practices. This includes reduced levels of key pollution, e.g., air pollutants stemming from combusting diesel and fuel oil such as SO2, PM, CO, and VOCs, due to more efficient use of resources, which can have co-benefits for residents’ health and the preservation and protection of the local biodiversity.                        [1] IRENA, Global energy transformation: A roadmap to 2050 (2019). Available here.