T&T Faces EU Carbon Border Tax Threat—But Could Wind Energy Be the Answer?

By BATV News

As Trinidad and Tobago’s (T&T) energy sector braces for the economic ripple effects of the European Union’s Carbon Border Adjustment Mechanism (CBAM), set to take full effect in 2026, the country finds itself at a critical juncture. The stakes are high for one of the world’s leading ammonia producers, and a wind energy partnership with the EU has sparked both hope and heated debate.

Understanding the CBAM Threat

The CBAM, a bold piece of EU climate legislation, is designed to curb global carbon emissions by imposing tariffs on carbon-intensive imports. This regulation seeks to prevent “carbon leakage,” which occurs when companies move operations to countries with looser emissions rules. Instead, CBAM aims to drive global adoption of greener production methods by making high-carbon imports less competitive in the European market.

For T&T, a country that exported over 4 million tonnes of ammonia in 2024—21% of which went to the EU and UK—the CBAM presents a direct challenge. Without decarbonizing its production processes, T&T’s ammonia exports face the risk of becoming less economically viable due to carbon penalties.

EU Partnership on Wind Energy: A Strategic Pivot?

Amid these looming challenges, Ivan Ovando-Lacroux, the EU’s International Cooperation Officer for Latin America and the Caribbean, announced a promising development: a joint wind energy project between the EU and T&T. The initiative involves repurposing offshore oil and gas platforms between Trinidad and Venezuela to host wind turbines, with the goal of powering ammonia production with renewable energy.

A key milestone in this transition will be the July 23 workshop, where stakeholders are expected to draft an actionable roadmap. The ambitious goal? Operational wind turbines by 2027, enabling T&T to reduce the carbon footprint of its ammonia exports and align with CBAM compliance.

Ovando-Lacroux emphasized that the successful implementation of wind power could “significantly help” T&T avoid hefty carbon tariffs, representing a rare blend of environmental stewardship and economic pragmatism.

Skepticism from Within: Is Wind Really the Right Fit?

But not all voices are singing the praises of wind turbines.

Anthony Paul, a well-known energy strategy and policy advisor, is urging caution. He questions the economic, geographic, and developmental fit of wind energy for T&T.

“Why are the European Union and the Americans pushing us to biofuels? Because they want to sell us solar and wind?” Paul asked, expressing doubt over the reliability of wind energy and its true benefit to the country.

He advocated for biofuels and biotechnology as more practical, scalable, and economically beneficial alternatives. These alternatives, Paul argued, would allow T&T to utilize existing infrastructure, such as fuel pumps, tankers, and refineries, while generating high-skill employment in sectors like agriculture and biotech research.

His underlying concern? That foreign-led renewable energy initiatives may not always align with T&T’s national interest and could be more about foreign export agendas than genuine local development.

Call for Climate Justice and Skilled Negotiation

Adding another layer to the conversation, climate change expert Steve Maximay has urged the T&T government to ensure the transition is both strategic and fair.

“It is about understanding principles like just transition,” said Maximay, pointing to the importance of climate justice and skilled negotiation.

He argued that countries like T&T, with limited historical responsibility for global emissions, should not be disproportionately penalized. Instead, the government must negotiate favorable terms within mechanisms like CBAM, possibly reducing the financial burden through well-structured climate diplomacy.

Silence from the Energy Ministry

Despite the growing urgency and public debate, Energy Minister Dr. Roodal Moonilal has remained silent, declining to comment on the wind energy partnership or how the government plans to respond to CBAM.

His absence has left a vacuum in the national discourse, with stakeholders across academia, industry, and civil society calling for transparency, consultation, and leadership.

What Lies Ahead?

With the 2026 CBAM deadline fast approaching, Trinidad and Tobago must now balance economic survival, energy security, and climate responsibility.

• Will the EU-backed wind energy initiative deliver the promised transformation?
• Can T&T successfully leverage its existing infrastructure and scientific capacity to pursue biofuel innovation instead?
• And most importantly, who gets to define the country’s energy future—foreign partners or the people of Trinidad and Tobago?

The next few months, beginning with the July 23 workshop, may well set the course for decades to come.

📰 BATV News will continue to monitor this evolving story and bring you updates on the wind energy workshop and further government response.

For feedback: contact the BATV Editorial Division at: info@batvja.com