Seated from (left) Audrey Sewell, permanent secretary in the Ministry of Economic Growth and Job Creation; Milverton Reynold, managing director of the Development Bank of Jamaica; Gillian Hyde, general manager of JN Small Business Loans, and Allison Rangolan McFarlane, chief technical director, Environmental Foundation of Jamaica sign a Memorandum of Understanding (MOU) to facilitate the administration of the Climate Change Adaptation Line of Credit (CCALoC). The CCALoC will provide financing to Micro, Small and Medium Size Enterprises in the tourism and agri-business sectors across Jamaica, to increase resilience to climate change in these sectors. The signing took place at the Office of the Prime Minister in St. Andrew last year. Looking on are Minister with Portfolio in the Office of the Prime Minister with responsibility for Economic Growth and Job Creation, Daryl Vaz and Therese Turner-Jones, general manager of the Inter-American Development Bank Caribbean Department.

Jamaica National Small Business Loans (JNSBL) is looking to vamp up interest in its US$2.5-million adaptation to climate change line of credit, catering exclusively to small and medium size enterprises (SMEs) from the agriculture, tourism and related sectors.

“In the coming months, JNSBL will be strengthening its efforts through collaborations with related parties in the tourism and agro value chain to further promote the special loan facility,” said Jacqueline Shaw Nicholson, JNSBL’s communications and client services manager.

“We will also support the education of persons on matters of climate change as well as adaptive and mitigation techniques available to them,” she told The Gleaner.

So far, SMEs have drawn down on J$19.5 million of the available funds to finance the installation of rainwater harvesting systems, drip irrigation systems, water recirculation systems, solar water heating system, and energy smart system.

The first loan was approved in December, following the official launch of the line of credit earlier in the year.

“JNSBL is pleased with the take up of the loan facility so far, with 51 per cent to the Tourism sector and 49 per cent to the agro sector in disbursements,” said Shaw Nicholson.

For those persons wishing to drawn down on the funds, criteria for selection include not only that they be operating a tourism or agro-related business, but also that proposed projects must enhance their capacity to cope better with the increased changes and effects of climate change.

“Collateral is required and can include machinery and equipment of trade or to be purchased, motor vehicles that can be comprehensively insured or registered titles as well as lien on deposits, guarantors are also acceptable,” revealed Shaw Nicholson.

The maximum loan amount that can be awarded is $5 million, with an interest rate of four per cent per annum on the reducing balance.

However, Shaw Nicholson said, “borrowers can also utilise other loan facilities available at JNSBL to further support project implementation where needed”.

The line of credit is one of two financing mechanisms under the Pilot Programme for Climate Resilience. The other is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica (EFJ).

The SCCAF finances adaptation and disaster risk-reduction projects and cover associated programme management cost.

It is accessible by community-based organisations, other civil-society groups and select public-sector agencies specifically for “clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction”, according to project documents.

The EFJ recently awarded 18 grants to the tune of $84.9 million to undertake projects designed to boost the ability of communities to respond to climate change threats.

Counted among those threats are increased and/or more severe extreme weather events, such as hurricanes and droughts, which destroy agricultural and tourism livelihoods.

Climate change also brings warmer temperatures, which, too, have negative implications for not only human livelihoods but also marine life. This is given, as one example, the negative effects of increased sea surface temperatures on coral reefs.

It is a look at these implications that, at least in part, provides the basis of JNSBL’s decision to pursue administration of the line of credit under the PPCR.

“Increasingly, agro-related activities were experiencing negative changes in production yield, both in quality and quantity, which affected their ability to earn as per usual. We, therefore, wanted to assist with educating our clients and staff on matters of climate change and assist them to obtain the systems and techniques necessary to adequately respond to matters of climatic variability,” Shaw Nicholson said.

“JNSBL is also cognisant of the wider threat climate change poses to food security and as a part of our own mandate to support economic sustainability, JNSBL wanted to provide well needed support to the MSME sector to adequately mitigate and adapt for sustainability,” she added.

Gleaner

Special Climate Change Adaptation Fund administrators from the Environmental Foundation of Jamaica and beneficiaries show off the cheque representing the most recent awards at the signing ceremony last Monday.

WITH A changing climate that threatens to wash away entire communities and derail livelihoods, local civil society organisations and small businesses are being empowered to respond – with capital.

This is thanks to financing made available through the Pilot Programme for Climate Resilience (PPCR).

There exist two financing mechanisms, according to Dr Winsome Townsend, project manager for the Adaptation Programme and Financing Mechanism under the PPCR.

One is the Special Climate Change Fund (SCCAF) that is being administered by the Environmental Foundation of Jamaica.

The SCCAF, according to project documents, is “to finance adaptation and disaster risk-reduction projects and cover associated programme management costs”.

“Grants from this trust fund will be accessed by community-based organisations, other civil-society groups and selected public-sector agencies, for clearly defined high-priority activities, particularly related to building the resilience of the natural environment and contributing to livelihoods protection and poverty reduction,” the documents revealed.

Last Monday, the first 18 beneficiary organisations were awarded sums to the tune of $84.9 million to undertake projects designed to enhance resilience at the community level.

“There was a call for proposals in October last year and out of that, about 80 proposals were received and about half that amount were shortlisted. They were further assessed and out of that, an initial 18 were approved,” said Townsend.

“Twelve were pending approval. Those 12 have now been approved. So out of that first call, approximately 30 have been approved,” she added.

PROJECTS TO BE PURSUED

Projects to be pursued include water harvesting and greenhouses, aquaponics systems and food processing, as well as various ecosystem restoration initiatives.

Townsend said another call will be issued later this month or early March.

The second mechanism is a line of credit, intended “to provide loan financing to support adaptation measures of farmers and other businesses in the agricultural sector, and small hoteliers and other businesses in the tourism sector”.

Five projects have been approved to the tune of some $25 million, Townsend said. However, the overall level of interest in the line of credit – administered by JN Small Business Loan – is not immediately clear.

“Because it has started soft, we don’t know yet. We can’t at this time make any determination as to the level of enthusiasm,” Townsend said.

Still, she is hopeful for its success, given what is at stake.

“It is not just the Government who needs to put in measures in terms of climate change adaptation, but everybody, including citizens. Of particular interest is the private sector because businesses are under threat from climate change, and so the private sector needs to respond to these threats,” she said.

“The micro, small and medium-size businesses are at greater risk because of their capacity to respond. They are not as resilient as the more established or bigger enterprises,” Townsend noted.

Gleaner

BEGINNING FEBRUARY 7, the USAID-funded Jamaica Rural Economy and Ecosystems Adapting to Climate Change II (Ja REEACH II) project, in collaboration with the Meteorological Service of Jamaica and the Rural Agricultural Development Authority will host a series of agrometeorology farmers’ fora.

The fora are geared at equipping farmers and other stakeholders with climate-smart risk management strategies. The series will explore common terminologies used by weather experts in delivering the weather news, enabling farmers to interpret and use this information. The workshop will also feature presentations on climate outlook for the upcoming six months and how to prepare for any unexpected changes in the weather to reduce exposure of livelihoods.

“The farmers will also benefit from awareness sessions focused on the impact of climate change and variability on agri-business enterprises, the role of insurance products in the management of climate risks, and planning for climate risks at the farm or community level using the participatory integrated climate services for agriculture tool. This will be complemented by an interactive demonstration of the risk associated with disasters and early warning climate service (flooding or drought) by the MSJ,” Ja REEACH II said in a release to the media.

INSURANCE POLICY

GraceKennedy Insurance has partnered with the Ja REEACH II project to provide Livelihood Protection Policy coverage valued at $300,000 which will be presented to selected farmers during the series. The Livelihood Protection Policy offered by GK Insurance is a trigger-based insurance policy which is designed to help especially non-salary income earners to cope with severe impacts on their livelihood following extreme weather events (rain and wind).

This is the third staging of the agrometeorology fora which builds on the engagement of some 575 farmers, extension officers and other stakeholders who have participated.

The Ja REEACH II project is a four-year initiative funded by the USAID and implemented by ACDI/VOCA. Through a range of interventions, Ja REEACH II works with government, private sector, civil society and community- based organisations to increase awareness and application of practical actions that help Jamaicans to become more resilient to the impacts of climate change.

Gleaner

Steadman Fuller, custos of Kingston has described climate change as the single greatest threat to local agriculture and, by extension, the Jamaican economy.

“Sadly, ladies and gentlemen, the food security to which we are traditionally accustomed is under serious threat. Only this time, it is under threat not directly from crop diseases and pests or praedial larceny, but from a more severe, potentially devastating and costly phenomenon called climate change,” Fuller told patrons on Sunday while delivering the keynote address on day two of the annual Denbigh Agricultural, Industrial and Food Show.

Explaining climate change as a “noticeable and sustained variation in weather conditions”, the custos sought to drive home to his audience the impact of climate change.

“The excessive heat that we have experienced; the long, dry season and the disappearance of some of some of our beaches, such as what is taking place at Hellshire in Portmore, are the direct result of climate change. You may even want to account that the heat that you have been feeling today is part of that phenomenon. In relation to agriculture specifically, climate change is a ticking time bomb,” Fuller declared.

VULNERABLE

“Just to give you an example, the destructive forces of flood and bush fires which destroy hundreds of acres of crops and farmland across Jamaica in the process, are reminders of our vulnerability to the intensity of natural disasters due to climate change. If left unchecked, climate change could reduce crop yields and the overall contribution of agriculture to national development. The farming sector could be wiped out if measures to safeguard the industry are not swiftly implemented and vigorously pursued.”

Fuller said that the theme of this year’s show ‘Grow What We Eat … Eat What We Grow Through Climate-smart Agriculture’ is evidence that the Jamaica Agriculture Society is well aware of the imminent danger and is ready to have that important conversation with farmers and other stakeholders in order to avert the potential danger.

He also had a message for policymakers.

“While there is no simple solution to the threat and consequences of climate change, it is a reality that measures and strategies must be implemented to ensure that our farmers can continue to do what they have done for centuries, and that is feed our nation.

“As a nation, we have to introduce measures to embrace climate-smart agricultural practices, so that rural communities can remain economically viable; our tourism and hospitality sector can have a sustained supply of fruits and vegetables and high-quality products; (and) our agro-processing sector can achieve its growth potential.”

Gleaner

KINGSTON, Jamaica –The Ministry of Industry, Commerce, Agriculture, & Fisheries (MICAF) has described Honey Bun’s newly-installed solar-energy system as a positive development for growth, job creation, and competitiveness.

Speaking on behalf of Minister Karl Samuda on Friday, at the official ribbon-cutting ceremony for the system at Retirement Road, Kingston, Director General in the ministry, Vivian Brown, noted that the first phase of the project, with an investment of US$250,000, has already yielded a 14 per cent decrease in the company’s electricity bill.

He pointed out that lower energy prices using solar energy will not only lower the costs of individual manufacturing operations, “but taken on a wider scale, will also reduce expenses for consumers and businesses, while increasing disposable income that can be spent in other ways”.

Brown stated that the high cost of energy has for a long time been placing a strain on the Jamaican economy, and encouraged other Jamaican manufacturers to use solar energy to reduce their costs.

He noted that more Jamaican manufacturers and householders are moving towards the use of solar energy, and that this is not just a Jamaican trend. Globally, he said, there is growing awareness that increased deployment of renewable energy is critical, not just for addressing climate change, but also for creating new economic opportunities.

“As a large user of electricity, Honey Bun has seen solar power as an effective solution to reduce costs, and I believe the steps that you are taking now will position you for a much brighter future,” Brown said.

The Observer

KHAN… what we want is for them to own, as much as possible, what has to be done in each sector

 

From the “historical momentum in favour of brown industries” – those overly dependent on fossil fuels – to “bias in the political system towards short-run and against long-run perspectives”, the deck appears stacked against Jamaica’s efforts towards a green economy.

These factors, according to the recently published Green Economy Scoping Study, in addition to others, include IMF prescriptions that preclude Government providing tax incentives to encourage greening.

Still, the study – done with United Nations Environment Programme and European Union support – notes that in as much as these factors are barriers, they are also justification for the transformation of the economy into one typified by efficient resource management, a low-carbon footprint, and which is socially inclusive.

And it cites a variety of opportunities that can be pursued across key sectors – agriculture, construction, energy, tourism, and water – from the private sector’s demonstrated leadership in some fields to existing policies and programmes.

Elizabeth Emanuel, one of the study’s authors, said the Vision 2030 Jamaica, for which she is programme director, is one such.

“One of the benefits Jamaica has in advancing to a green economy, compared to other states, is that our own national development plan had the foresight to include the green economy as a pathway to prosperity. That plan speaks to the green economy and what a green economy would look like for Jamaica,” she told The Gleaner.

Possibility Indicators

And there are some good indicators of what’s possible, Emanuel added, noting that there have been, for example, advances in the diversification of the island’s energy mix.

“We also have a society that is more aware, companies that are thinking and talking green, and all of these are creating the demand for a green economy,” she noted.

According to Emanuel, there is no question of the need to pursue the transition – whatever the constraints.

“The green economy is not just about environmental protection, but it is our planet, our people, our economy and how we marry those three to create sustainable solutions that will advance the prosperity of our land of wood and water,” she said.

Eleanor Jones, head of Environmental Solutions Limited, agreed.

“When it comes to what we need, we need to look at our resources management because that is also a part of it … . But you can’t just wave a magic wand. It has to be a structured approach with legislation and incentive … ,” she said.

“We like to talk about the IMF putting in all these strictures, and they have, and you have to watch your budget. But not everything has to cost a lot of money… . We have to encourage our suppliers to retool and encourage our consumers to manage their resources,” Jones added.

Colonel Oral Khan, chief technical director in the Ministry of Economic Growth and Job Creation, said the coming months should see a re-engagement of key actors towards the green economy.

“The various sectors were consulted in the preparation stage. We now need to re-engage with these sectors at the highest levels because there have been a number of changes,” he said.

“What we want is for them to own, as much as possible, what has to be done in each sector. We expect that they will go through the list of recommendations that are there and see which ones are to be done in the short to medium term, so they can embrace those and seek to work them into their respective strategic plans. That is the approach we will take,” he added.

Among the recommendations from the study are:

• Sustainable land management and water management systems for agriculture;

• Enforce the new building code, as well as adopt codes and standards that mandate green construction practices for the construction sector; and

• Promote and incentivise renewable energy use and water use reduction, as well as planning for climate change for the tourism sector.

There is, too, the recommendation to develop more extensive sewage recycling, as well as reduce energy cost and diversify sources for the water and sewerage sector.

pwr.gleaner@gmail.com

 

The Gleaner

The Ministry of Agriculture and Fisheries, through the National Irrigation Commission (NIC) is set to introduce the use of solar power to operate the pumping of water for irrigation.

Minister of Agriculture, Labour and Social Security Derrick Kellier says the move will commence shortly with the commissioning into operation of solar power to operate the pumping system at Ebony Park in Clarendon.

In September a $300 million irrigation project will be launched at Spring Plain/Ebony Park bringing the nearly 3,000-acre property at the agro-park into full production.

Kellier, who was speaking at the 63rd Annual Denbigh Agricultural, Industrial and Food Show in Clarendon on Saturday, August 1, said that if Jamaica is to increase its production and productivity and ensure its food security, irrigation systems needed to be significantly improved and expanded.

Noting that the total irrigable land in Jamaica is 187,814 hectares yet only 12,500 hectares or about seven per cent of that land is irrigated, Kellier outlined a number of strategies intended to optimise and expand the country’s irrigation systems.

The imperative to optimise and expand the country’s irrigation systems is not born solely from the scarcity of water, but from the imperative to increase productivity and Jamaica may very well reach the stage where fiscal incentives for investment in irrigation had to be provided, Kellier said.

The agriculture ministry was therefore preparing a comprehensive proposal to be discussed with the appropriate authority, he added.

“I believe we have no alternative since these droughts are the greatest threat to increased production,” said Kellier.

According to the ministry, in addition to various climate-smart and drought mitigation projects, over $5 billion has been spent over the past 10 years to install new irrigation systems to ensure sustainable agriculture and the reduction of dependence on rainfall.

 

Jamaica Observer