Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024.
Nissan Chief Executive Makoto Uchida, left, and Honda President Toshihiro Mibe attend a joint news conference in Tokyo, Friday, March 15, 2024.

Nissan and Honda announced that they will work together in developing electric vehicles and auto intelligence technology, sectors where Japanese automakers have fallen behind.

The chief executives of Nissan Motor Company and Honda Motor Company appeared together at a news conference in Tokyo to announce that Japan’s second and third biggest automakers will look into areas with a potential for collaboration.

The details of the non-binding agreement are still being worked out, both sides said. The executives said the companies will develop core technologies together, but their products will remain different.

Nissan Chief Executive Makoto Uchida stressed that speed is crucial for the companies in developing technological solutions.

“We don’t have time,” he said. “It is significant that we have reached this agreement based on a mutual understanding that Honda and Nissan face common challenges.”

Honda President Toshihiro Mibe said the companies share common values and could create “synergies” in facing their formidable rivals.

The world’s automakers are rapidly shifting toward electric vehicles, focusing on batteries and motors instead of gas engines, as concerns grow about emissions and climate change.

But Japanese automakers have fallen behind rivals such as Tesla of the United States and BYD of China in developing EVs, partly because they have historically been so successful with combustion engine vehicles.

Toyota Motor Corp, the world’s largest automaker, has often said the world is not ready for a complete shift to EVs, in part because of the lack of a charging infrastructure, and instead has pushed hybrids, which have a gas engine in addition to an electric motor.

But Toyota is also expected to aggressively deliver on an EV push in coming years.

Nissan is relatively ahead in EVs among Japanese automakers because it was among the first to come out with an EV with its Leaf, which went on sale in late 2010.

High expectations for the Nissan-Honda agreement were reflected in sharp increases in the stock prices of both companies on Thursday after a Japanese media report said such a deal might be in the works.

Their shares continued to rise Friday, with Nissan finishing 3.2 per cent higher Friday and Honda rising 1.7 per cent. The agreement was announced after trading closed in Tokyo.

The executives said no mutual capital ownership is involved in the agreement for now, but the companies may look into the possibility down the road.

“How we can raise our competitiveness is what we are determined to pursue,” Uchida said.

Gleaner

The Biden administration on Wednesday finalized one of the most significant pieces of its ambitious climate agenda: the strongest new tailpipe rules for passenger cars and trucks that will decisively push the US auto market toward electric vehicles and hybrids.

But in a concession to automakers and labor unions, the rules will be phased in more slowly than originally proposed and will give automakers more choices for how to comply.

Nearly a year ago, the Environmental Protection Agency proposed a fast ramp-up into EVs — a rule that would have ensured two-thirds of all vehicles sold were electric by the end of this decade. The EPA pumped the brakes on that plan Wednesday.

Instead of pushing automakers to sell more EVs to meet stringent pollution targets, the administration is allowing plug-in hybrids — vehicles that combine gas engines and EV-like batteries — to play a much bigger role in the electric transition.

In 2023, EVs made up just 7.6% of new car sales, according to Kelley Blue Book. The new rule is targeting 35% to 56% for EVs in 2032, and 13% to 36% for plug-in hybrids.

Transportation has an outsized climate impact, making up nearly a third of all US climate pollution, so even small steps can lead to significant change. Margo Oge, who previously headed the agency’s office of Transportation and Air Quality, called the new standard “the single most important climate regulation in the history of the country.”

In a statement Wednesday, President Joe Biden vowed the cars would be made by American workers. “US workers will lead the world on autos making clean cars and trucks, each stamped ‘Made in America,’” Biden said. “You have my word.”

Federal officials said the rule doesn’t favor electric vehicles over other types of vehicles, and will reduce nearly as much pollution as the original proposal — more than 7 billion metric tons of planet-warming emissions, along with other pollution that is detrimental to human health. By 2032, the new rule is expected to slash passenger car pollution nearly in half from 2026 levels.

“Within those ranges, we got to the same place” as the standard proposed last year, said Joe Goffman, who leads the agency’s Office of Air and Radiation.

Goffman said the agency considered different ways automakers could “mix and match” new vehicle models to meet the standard — by using more efficient gasoline engines, hybrids, plug-in hybrids and battery electric vehicles.

“By taking seriously the concerns of workers and communities, the EPA has created a more feasible emissions rule that protects workers building (traditional, gas-powered) vehicles, while providing a path forward for automakers to implement the full range of automotive technologies to reduce emissions,” the United Auto Workers union said in a statement.

White House national climate adviser Ali Zaidi said that “one of the really strong features” of the new rule was its flexibility.

“Different automakers are going to approach this in different ways,” Zaidi said. “You’ll have some automakers that maybe have a third of their fleet be plug-in hybrid electric vehicles.” Zaidi argued that would “translate into a lot of consumer choice.”

Carmakers get flexibility

Automakers like Toyota, who are favoring hybrids and plug-in hybrids and moving slowly on EVs, could be big benefactors of EPA’s new rule.

Toyota, the world’s largest automaker, is among the companies that aggressively pushed back against the Biden administration’s original proposal.

In a memo sent in the fall of 2023 to car dealers across the US, Toyota Motor North America group vice president of government affairs Stephen Ciccone described the EPA’s original EV proposal as a “mandate” and “draconian,” CNN recently reported. Ciccone wrote the proposal had caused an “existential crisis” in the industry and suggested an option giving automakers more choice.

“Toyota’s position is that the best way to reduce carbon is by giving consumers a choice of powertrain options, including hybrids, plug-in hybrids, fuel cells, fuel efficient ICE vehicles, and BEVs,” Ciccone wrote.

That flexibility is what the EPA finalized on Wednesday. But Toyota continued to characterize EPA’s rule as a “regulatory mandate” that will force it further into the EV game than it’s currently positioned.

The rule “requires a precipitous shift from around 8% market share of battery electric vehicles today to more than half by 2032 – an aggressive, sixfold increase over just eight years,” said Toyota spokesperson Edward Lewis in a statement. “Toyota will continue to lead the industry and comply with regulations, but serious challenges around affordability, charging infrastructure, and supply chain will need to be addressed before this mandate is realized.”

President Joe Biden has made the transition to EVs a signature issue of his presidency, stressing the economic impacts, in addition to the climate benefits, of cutting pollution. In August 2021, after the president announced an ambitious target that half of vehicles sold in the country by 2030 would be either battery electric, fuel-cell electric or plug-in hybrid, Biden test-drove a hybrid-electric Jeep on the White House grounds.

But political battle lines are being drawn around the EV transition. Former President Donald Trump, the Republican nominee for the 2024 presidential election, has railed against EVs in his speeches. He recently characterized EVs as “all” being made in China, even though Democrats’ Inflation Reduction Act has pushed a new EV manufacturing and assembly to the United States.

With the new standard giving automakers more flexibility, EPA administrator Michael Regan denounced the characterization that the agency was setting an EV “mandate.”

“When you look at the differences between the proposal and final, you will see that there is absolutely no mandate,” Regan told reporters, adding his agency was staying “well within the confines of the law.”

It’s not just Trump; the jump to EVs has some of Biden’s political allies worried, too. The United Auto Workers, a powerful union that has endorsed Biden, has also expressed concerns about what the shift to EVs could mean for their workers, who believe battery-powered cars require less labor to build.

But the demand for fully electric cars is growing in the US. The nation crossed a key threshold at the end of last year: 1.2 million electric vehicles were sold — a 46.3% jump from 2022.

EV adoption rates are likely to slow down this year, which is to be expected, said Trevor Houser, partner at the nonpartisan Rhodium Group. He’s looking for two main signs of EV success in the coming years: whether automakers can make a wide enough variety of the vehicles Americans want to drive, and whether the cost can come down to a more affordable range of $20,000 to $30,000.

“We won’t really know before (2025) how successfully we’re making that transition because the next generation of more affordable EVs won’t be on the market,” Houser told CNN.

Zaidi agreed it would take time to see whether more Americans move to fully electric cars.

“That’s something we’ll see over time,” Zaidi said. “But this rule is very flexible and allows for all of those pathways to emerge, and for (automakers) to pursue those in a manner that’s consistent with their strategies.”

Climate and health impacts

While the climate impact of the tailpipe rules have drawn the most attention, there is a big public-health component, as well.

Reducing pollution from cars and trucks could help Americans’ health on multiple levels, since the EPA’s multi-pollutant standards will tackle greenhouse gases that cause climate change, smog and particle emissions.

No amount of air pollution is safe, and according to the World Health Organization, it’s one of the greatest environmental risks to human health.

Vehicle exhaust is made up of all sorts of pollutants, including carbon monoxide, particulate matter, nitrogen oxides, sulfur dioxide and carbon emissions that contribute to a warming world, which is also itself a major threat to health.

Exposure to particle pollution ages and reduces lung function, and it can lead to cancer, stroke, heart problems, COPD and other lung and vascular issues. It can aggravate asthma and is linked to neurodegenerative diseases like Alzheimer’s, Parkinson’s and other types of dementia, studies have found. People exposed to higher amounts of this pollution for longer periods also have an increased risk of depression and anxiety. Exposure can even contribute to problems thinking clearly.

Particle pollution led to more than 107,000 premature deaths in the US in just one year, one 2019 study found. That’s more than the number of people killed each year in homicides and traffic accidents combined, researchers said.

“These standards really provide significant relief that communities across America need from vehicle exhaust,” said  Will Barrett, the American Lung Association’s senior director of advocacy for clean air. “It’s very much setting a strong direction to ensuring the auto industry cleans up harmful pollutants and communities are better protected from traffic emissions.”

CNN

The escalating expenses associated with electricity in Jamaica have significantly driven the expansion of solar energy usage. Notwithstanding this challenge, substantial initiatives have been implemented by both the government and CARICOM to foster the growth of renewables, enhancing affordability for Jamaica and other Caribbean nations. A notable exemption involves the elimination of taxes on the importation of solar lithium batteries. Given that solar batteries constitute a significant proportion of the overall expenses in a solar energy system, the removal of the common external tariff on solar lithium batteries has played a pivotal role. Consequently, this policy adjustment has empowered more homeowners to not only curtail energy costs but also to avail themselves of robust backup power options during extended blackouts, a scenario often induced by hurricanes or other natural disasters.

In a recent turn of events, the Council for Trade and Economic Development (COTED) made a decision that sent shockwaves through Jamaica’s renewable energy sector: not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean which means lithium batteries would now be taxed 20% on importation. This decision, which could have had dire consequences for the burgeoning renewable energy industry, was met with rightful objection from the Jamaican Government. However, the disappointment lies not only in the initial decision but also in the government’s delayed response and lack of transparency in addressing the issue.

As an active participant in the renewable energy sector, I was deeply concerned when news broke of COTED’s decision to remove the suspension of the lithium battery tariff. This decision threatened to undermine Jamaica’s progress towards achieving its Vision 2030 goal of sourcing 50% of electricity from renewable resources by 2030. With lithium batteries playing a crucial role in renewable energy storage, the imposition of tariffs would have undoubtedly hindered the growth of the industry.

The situation was further compounded by the silence from key government officials. Despite Jamaica’s attendance at the COTED meeting in Barbados, there was no public acknowledgment for a staggering 30 days of the decision to reinstate the tariff. A TV news report that aired on January 30, 2024 was what prompted the government to release a press statement on January 31, 2024 addressing the issue.

The lag in the government’s response forced stakeholders of the (renewable) industry to pay the 20% tax for the entire month of January associated with the purchase of Lithium batteries thus undermining confidence in the commitment to champion the renewable energy agenda. Stakeholders of the renewable energy industry are now left questioning if their best interests are truly being represented.

The refusal of the government to disclose the name of the company in Barbados responsible for the tariff imposition adds another layer of opacity to the situation. Why not publicly state the name of the company that all were being forced to purchase tax free Lithium batteries from if the tax exemption had not been reinstated. This lack of transparency appears tone deaf particularly considering the significant financial implications incurred by Jamaican solar companies as a result of the unexpected duties.

The proactive move from the Jamaican government should have been an immediate response followed by full disclosure and that it is making every effort to refund solar companies the taxes paid by them during the month of January. While we acknowledge the reinstatement of the tariff exemption for 2024 and the relief it provides, the absence of accountability from the government and a plan to reimburse impacted industry players undermines their stated support for the renewable energy sector.

In the absence of a concrete plan from the government to prevent a recurrence of such events, uncertainty looms at large as to what will happen when the exemption expires February 2025. The lack of proactive measures to safeguard industry players against a repeat of events or similar cost impacting instances in the future will only erode trust and heighten skepticism in Vision 2030 and the government to fulfill its commitments. Stakeholders are now left to speculate on the future of the renewable energy industry in Jamaica.

As the need and demand for renewable energy continues, it is imperative that the Jamaican government takes swift and decisive action to address these grievances and secure the renewable energy sector and its stakeholders. Without accountability, transparent communication and engagement with stakeholders of the industry, and a strategic plan by the government, the reality of a sustainable energy future for Jamaica remains at risk of being derailed by bureaucratic inefficiencies or political apathy. 

Jason Robinson
Chief Executive Officer
SolarBuzz

The CARICOM Secretariat has finally given approval for the suspension of the Common External Tariff (CET) on the importation of lithium-ion batteries into Jamaica.

The suspension of the CET took effect on February 2, 2024. It will last until February 1, 2025, speciifically for the importation of 240,000 Lithium-ion batteries.

Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will examine the scope for a renewal of the CET suspension.

In expressing satisfaction with the decision, Minister of Industry, Investment and Commerce (MIIC) Senator Aubyn Hill stated that the approval is a testament to the Government’s commitment to creating a sustainable and innovative future for citizens.

“The discussions with CARICOM and the successful negotiation of the CET suspension underscores our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future,” said Hill in a release issued by the MIIC today.

It was previously reported by the Opposition spokesperson on investment, trade and global logistics, Anthony Hylton, that CARICOM had denied Jamaica’s request for the suspension of the CET following an 11th-hour response by another member state at the meeting with the CARICOM Council on Trade and Economic Development (COTED).

However, the MIIC said that approval was granted following intervention by Hill at the 57th Meeting of the CARICOM Council for Trade and Economic Development (COTED) on November 27, 2023.

The MIIC added that there were subsequent bilateral consultations between Jamaica and Barbados, which seemingly confirms the island as the member state that delivered the 11th-hour response to block Jamaica’s request.

According to the Amended Article 83 of the Revised Treaty of Chaguaramas, which refers to the application of the CE , any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in CARICOM, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard.

The MIIC said that every effort was made to expedite the assessment of Barbados’s capacity to supply the product and to engage the CARICOM Secretariat for a speedy resolution.

The collaborative efforts of representatives from the Ministry of Industry, Investment and Commerce (MIIC), Ministry of Science, Energy, Telecommunications and Transport (MSETT), Ministry of Foreign Affairs and Foreign Trade (MFAFT), and Ministry of Finance and the Public Service (MOFPS), were integral to the successful negotiations. The CARICOM Secretariat also played a vital role as a facilitator. In addition, guidance was sought from the Attorney General’s Chambers (AGC) and the Jamaica Customs Agency (JCA).

OUR

JAMAICA’s Ministry of Industry, Investment and Commerce (MIIC) on Monday announced that the Caricom Secretariat has authorised the suspension of the Common External Tariff (CET) in respect of the importation of lithium-ion batteries into Jamaica.

This decision follows an intervention made by Senator Aubyn Hill, the minister of industry, investment and commerce, at the 57th meeting of the Caricom Council for Trade and Economic Development (COTED) on November 27, 2023, in addition to subsequent bilateral consultations between Jamaica and Barbados. It marks a pivotal development in fostering a conducive environment for investments in Jamaica’s renewable energy sector.

“The suspension of the CET is effective from February 2, 2024 to February 1, 2025, for a quantity of 240,000 lithium-ion batteries. Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will be an important factor in examining the scope critical for a renewal of the CET suspension,” according to a release from the MIIC on Monday.

The release said the collaborative efforts of representatives from MIIC; Ministry of Science, Energy, Telecommunications and Transport; Ministry of Foreign Affairs and Foreign Trade; and Ministry of Finance and the Public Service were integral to the successful negotiations.

“The Caricom Secretariat also played a vital role as facilitator. In addition, guidance was sought from the Attorney General’s Chambers and the Jamaica Customs Agency. These collective actions align with the provisions outlined in the Amended Article 83 of the Revised Treaty of Chaguaramas, regarding the operation of the Common External Tariff. This article stipulates that any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in the [Caribbean] Community, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard,” said the release.

It also said that the Ministry of Industry, Investment and Commerce, acting as the authorised body responsible for engaging with COTED on Jamaica’s behalf, played a pivotal role in securing the favourable outcome. Every effort was made by the MIIC and other GOJ representatives to expedite the assessment of Barbados’s capacity to supply the product and to engage the Caricom Secretariat for a speedy resolution.

In expressing his satisfaction with the decision, Hill said: “This approval is not just a win for the renewable energy sector but a testament to our commitment to creating a sustainable and innovative future. The discussions with Caricom and the successful negotiation of the CET suspension underscore our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future.”

Jamaica Observer

Minister of Industry, Investment and Commerce Senator Aubyn Hill has shot back at claims that a delegation he led to the last meeting of the Caribbean Community (Caricom) Council on Trade and Economic Development (COTED) did little to preserve a common external tariff (CET) waiver on the importation of lithium-ion batteries. Lithium-ion batteries are used to store the excess power produced by solar photovoltaic systems.

Speaking to the Jamaica Observer last Friday following a press briefing held at Kingston Wharves Limited in conjunction with the European Union, Hill said he challenged COTED’s decision when he attended the meeting.

“I was there; I pushed back when Minister [of State in Foreign Trade and Business Sandra] Husbands from Barbados raised the issue. I raised the issue that the technical team representing Barbados…did not raise the issue. I raised the issue and objected,” he asserted.

Documents submitted to the Business Observer reveal that at the COTED meeting held November 27-28, 2023, in Georgetown, Guyana, the Jamaican delegation submitted a “Request for Approval of the Suspension of the CET on a Priority List of Renewable Energy and Energy Efficient Technologies”, citing the need to increase the penetration of renewable energy sources and greater adoption of energy efficiency measures in order to reduce the country’s carbon emissions.

The application for the roll-back on the 20 per cent charge would apply to compact fluorescent lamps, vapour absorption refrigeration systems, thermal storage air conditioning systems, rechargeable batteries for renewable energy systems (photovoltaic systems), among others. The council however refused to approve the suspension of CET on lithium-ion batteries, nothing that “Barbados indicated its ability to supply 240,000 lithium-ion batteries… as requested by Jamaica, for the period 1 January 2024 to 31 December 2025”.

The documents did not identify the name of the Bajan company that has offered to supply the Caricom Single Market with the batteries, but checks have revealed that Meritsun Power is the only supplier of that type of energy storage unit in the Eastern Caribbean island.

However, according to Alex Hill, president of the Jamaica Renewable Energy Association (JREA), “The Ministry of Science, Energy, Telecommunications and Transportation (MSETT) is choosing to protect the name of the company in Barbados instead of sharing it with stakeholders in the sector. This company formally approached COTED and stopped our local tax incentives and therefore should not be protected by our Government. Their name should be publicly available so that importers in Jamaica can contact them and make orders from them. After all, they are now the preferred supplier for the region.”

 

Questions arising

The decision of COTED and what was deemed the inaction of Minister Hill and his team have been met with ire by both the JREA and the Opposition People’s National Party.

Noting concerns being raised in the renewable energy industry, Opposition spokesman on investment trade and global logistics Anthony Hylton questioned why a last-minute submission by Barbados was allowed to block Jamaica’s request for CET exemption.

Moreover, he underscored, “It is the practice that a request for suspension is not denied without prior evidence resulting from an investigation by the Secretariat technical staff that the Caricom producer satisfies at least 75 per cent of the product demand in Caricom.”

In an e-mail to the
Business Observer, JREA President Hill, who is the son of Minister Aubyn Hill, argued, “We know that this company cannot do what they purport to do because Barbados does not have known lithium deposits, industrial lithium processing or commercial manufacturing facilities for lithium batteries. As a point of reference, Jamaica imported approximately 11,000 lithium-ion batteries for renewable energy purposes between 2021 to 2022.”

He added: “The Jamaican delegation that attended this past COTED meeting should have vehemently rejected any suggestion by the Barbadian delegation that a single company could supply the needs of Jamaica without first reviewing the technical aspects of their product offerings, their manufacturing capability and standards. That is what the stakeholders in the renewable energy sector expect from their Government, to protect our local industry players and the Jamaican citizens who have spoken with their wallets and are purchasing lithium-based battery energy storage systems en masse. These taxpaying citizens should not bear the brunt of a 20 per cent tax because a no-name company, without a track record, or even a website, makes an erroneous claim that they can supply the needs of the Jamaican market.”

The JREA president further pointed out, “It has been reported that the Trinidadian Government has chosen not to implement the 20 per cent tax as the company in Barbados has not yet been able to substantiate their claims.”

With this is mind, he questioned why the Government has quickly implemented the CET in an “unplanned manner” and what timeline MSETT has in mind to request a revocation of the CET. This question was posed on Friday to Minister Hill.

 

Next steps

In his response, the minister said his portfolio ministry has alongside MSETT investigated the claim made by the Barbados company of its capacity to supply lithium-ion batteries to the region.

“A position is coming out very shortly,” he told the
Business Observer, adding: “What we were arguing is that they’re not manufacturers of [lithium-ion] batteries.”

Based on COTED rules, a company’s market share can be protected with the application of a CET on similar products imported from outside the region once it can prove that it can adequately supply the Caricom Single Market. Additionally, the entity must show that it is engaged in the manufacturing of the product with most of the raw materials originating from the region.

Highlighting that he has written to the Caricom Secretariat to object to the CET, Minister Hill explained that the objection is accompanied by a request for the exemption to the tariff to be reinstated for the period January 1, 2024 to December 31, 2025. Additionally, he said that his ministry will present its findings to the Caricom Secretariat by latest next week.

Notwithstanding, the younger Hill, who is the managing director of IREE Solar, noted what he called a “condescending lack of communication” from MSETT.

“It is only exacerbated because the JREA was preemptive in requesting planning meetings with the MSETT team and, as such, the MSETT team had clear data and a plan going into this last COTED meeting to have the incentives extended. Furthermore, this decision was arrived at during the November 2023 meeting of COTED, but all stakeholders were informed of the decision by a newspaper article on the 28th December, 2023; a mere three days before the tax was to be applied. There was no proper communication with investors, project developers, importers or purchasers, and no planning period given to the industry. This cannot be the proper manner in which to conduct business in the energy sector in [2024],” he stated.

He continued: “In conclusion, it is evident that whatever regulations and rules that are currently being used to govern objections to incentives at COTED, and the application of CET to energy, efficient and renewable energy items is flawed, ineffective, and needs to be overhauled immediately. No company from any Caricom nation should be allowed to object without formally submitting specific data surrounding their ability to manufacture on scale, their product/s’ technical specifications and other pertinent business details. There must also be punitive measures applied against that single company and/or the government representing said company if their claims are untrue and fall short of their stated intent. Millions of Caricom citizens should not be expected to bear the burden of a tax during the deliberation stage of these incentive negotiations. That is unfair and illogical.”

In June 2022, after much agitation from the JREA, Jamaica’s Minister of Finance and the Public Service Dr Nigel Clarke announced the removal of both GCT and CET on lithium-ion batteries – the latter being due to an approval from COTED. However, when contacted by the
Business Observer last week, he clarified that matters under COTED are handled by the Ministry of Industry, Investment and Commerce. Additionally, he outlined that once COTED has reached a decision, it is binding on all Caricom member states and so the tariff on lithium-ion batteries will have to be reinstated.

Another insider from the JREA has indicated that the Ministry of Foreign Affairs and Foreign Trade will also submit a request to COTED for the reversal of the decision to impose the tariff.

Jamaica Observer

The government says it’s seeking a revision of the Council for Trade and Economic Development, COTED’s, decision not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean.

COTED is the organisation responsible for the promotion of trade and economic development within CARICOM.

At a meeting held by COTED in November last year, the Ministry of Science and Energy requested that the suspension of the tariff on Jamaica’s importation of nine renewable and energy efficient technologies be extended until December 2025.

Among the technologies listed were lithium-ion batteries.

The previous two-year suspension ended December 31 last year.

However, according to the ministry, COTED decided not to grant the extension as a result of the Barbadian government indicating that a company located in the eastern country was able to supply the quantity of lithium-ion batteries being requested for tax exemption.

The ministry says following an assessment of the company, it was determined that the lithium-ion batteries on Jamaica’s priority list were different from those supplied by the Barbadian company.

It noted that the company’s existing production capacity amounted to only 1.5 per cent of the lithium-ion battery imports, particularly for use in renewable energy systems.

According to the ministry, the decision not to suspend the tax on the batteries did not sufficiently consider the rules of origin under the Revised Treaty of Chaguaramas and the production and export capabilities of the Barbadian company.

The ministry says it requested a revision of the council’s decision in mid-January.

While acknowledging the importance of COTED’s decision to Jamaica’s renewable energy sector, the ministry says it’s committed to working closely with its partner Ministries to have the decision reconsidered.

Abigail Bartley reports.

Nationwide Radio

The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024

 

The Ministry of Science, Energy, Telecommunications and Transport has advised that a 20 per cent tariff will be applicable to the importation of lithium-ion batteries from outside the CARICOM region as of January 1.

A two-year suspension of the common external tariff (CET) is in place until the end of December, and Jamaica requested a further two year extension at a November meeting of the Council for Trade and Economic Development (COTED).

However, the ministry said in a media release on Friday that a Barbados-based company has objected to Jamaica’s application, indicating through the Barbados government that they produce the type of lithium-ion batteries being requested for CET suspension.

The  ministry said the necessary due diligence is now being done by the Jamaican authorities to assess the Barbadian company’s certificate of origin and their ability to meet the specifications and provide the quantities required by Jamaica’s renewable energy sector.

The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024, to allow for the preparation of the Government of Jamaica’s response to COTED.

“Due to the objection raised by the Barbadian company, a 20 per cent CET will be applicable to the importation of lithium-ion batteries from outside the region as of 1st January 2024. While the country’s renewable energy stakeholders should remain guided by the Jamaica Customs Agency, it should be noted that only lithium-ion batteries imported for use in solar applications will be exempt from GCT,” the ministry stated.

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.

Gleaner

Dear Editor,

Jamaica’s energy landscape stands at a crossroads as nuclear power is being considered.

In response to the Jamaican Government’s intention to explore nuclear energy, the expressed concerns of authors like Trevor Noel Blair and Ambassador Byron Blake, Jamaica’s former deputy permanent representative to the United Nations, underscore the potential drawbacks.

Blair elucidates issues concerning radioactive waste disposal, water consumption, and the risk of environmental disasters, while Blake highlights the challenge of finding suitable locations for nuclear power plants and emphasizes the importance of thorough consultation before making irreversible commitments.

Conversely, other contributors, like Haile Dennis, advocate for the potential benefits of nuclear power, focus on the safe management of radioactive waste, water usage, and the potential for reliable energy generation. Their opinions underscore the need for informed decision-making in the pursuit of a sustainable and resilient energy future for Jamaica.

Reforming the Electricity Act of 1995 is still essential. To foster renewable energy adoption, it is plausible to make solar panels and alternative energy generation methods economically more accessible, if not free. This move can ignite a green energy revolution. Simultaneously, registering electricity generation with the Government and introducing sensible taxation mechanisms ensure fair distribution of costs and benefits among Jamaican citizens.

Furthermore, decentralisation is the way forward. Removing houses from the grid and encouraging independent power generation aligns with the growing power needs of electric vehicles (EVs), which have become more commonplace.

A substantial reduction in the oil bill is on the horizon. As battery-swapping stations powered by alternative energy emerge, the transition to cleaner transportation is accelerated. For a sustainable future we recommend a bold step: make all vehicles imported after 2025 electric. This approach complements the evolving green energy grid, aligning with global sustainability goals.

Nuclear energy should be approached with caution, addressing the concerns raised by critics. The alternative is to transform Jamaica’s energy landscape by making renewable energy accessible, promoting decentralised energy generation, reducing the oil bill, and spearheading the transition to electric vehicles. This holistic strategy ensures a more sustainable and independent energy future for Jamaica.

L H Deer

Physics and integrated science teacher

Tivoli Gardens High School

Jamaica Observer

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
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

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. 

Gleaner