Development of a fiscal pathway to achieving energy efficiency in RAC in Trinidad and Tobago through tax incentives

The main objective of the project was to develop financial incentives for Trinidad and Tobago to support the transition towards a low-carbon and energy-efficient state, with a particular focus on the refrigeration and air conditioning (RAC) sector. The project also analysed the environmental and socioeconomic impacts associated with this transition, particularly regarding CO₂, HCFC and HFC emissions, in alignment with the National Cooling Action Strategy.

The main activities of the project included the analysis of the existing tax system -including import, value-added and sales taxes- and current incentives for infrastructure retrofitting and electro-mechanical reconversion in the commercial and industrial sectors. The work also involved an assessment of the effectiveness and optimisation of existing fiscal incentives.

In addition, the project developed a tax incentive proposal containing a compendium of fiscal incentives aimed at promoting low-carbon and low-global warming potential (GWP) RAC markets. The technical assistance also included consultations, workshops and meetings with the National Ozone Unit and national stakeholders as part of the data collection process and the review of project outputs and recommendations.