Jamaica’s push for the use of more electric vehicles (EVs) in the country has got a significant boost with the announcement that the Government is developing a fiscal incentive regime to develop the market for these green energy vehicles.

The Ministry of Finance and the Public Service has concluded its review of the fiscal regime to develop Jamaica’s e-mobility architecture and will proceed to seek the input of Ministry of Science, Energy and Technology. Science, Energy and Technology Minister Daryl Vaz. Vaz who made the announcement, expressed confidence that the finance ministry will propose an effective fiscal regime.

Decisions have been taken by the automobile manufacturers to discontinue the manufacture of fossil fuel vehicles by 2030. As such, Jamaica is pushing to have a regime of fiscal incentive in place so that the country doesn’t become the dumping ground of the world for fossil fuel vehicles that will no longer be allowed in other jurisdictions.

Making his contribution to the 2021/2022 Sectoral Debate in Parliament earlier this week, Vaz emphasised that the Andrew Holness-led Administration will continue to lay the foundation for an electro-mobility environment.

EV council already established to regulate the market

The Government has already established an electric vehicle (EV) council to oversee a consultative process on the introduction of electro-mobility. The council is not a decision-making body but, rather, will give oversight and review any policies, legislation and regulations related to the deployment of EVs in Jamaica.

In addition, the council will comment and provide feedback on matters relating to safety and suitability of EV technologies contemplated for Jamaica and will advise the minister with responsibility for energy. The council held its first meeting on May 14, 2021 and approved the e-mobility strategic framework.

The strategic framework, which will include the fiscal regime, will be placed before the Cabinet for its consideration.

Minister Vaz told Parliament that his ministry intends to seek the approval of Cabinet for the overarching policy framework.

In addition, the Office of Utilities Regulation will also be embarking on public consultations to examine proposals on a regulatory framework to facilitate the penetration of EVs. “Jamaica is redefining the energy landscape to allow us to scale up actions to achieve energy security, energy efficiency, energy resilience and greater energy investments in the country,” Vaz said.

charging stations being established across Jamaica

The minister expressed delight at the fact that EV charging stations are being established across the island. He advised his parliamentary colleagues that “the development of the infrastructure is an important pillar in the e-mobility ecosystem. Madam Speaker, the scope and magnitude of the work that is required to implement e-mobility is wide-ranging including policy and legislative framework for sectors such as the financial, transport, energy and environment sectors.”

Vaz noted that Jamaica must consider matters such as fuel economy standards and economic instruments that support the deployment of e-mobility infrastructure noting that if the country can achieve 12 -16 per cent e-mobility of its private and public fleet of vehicles, the savings to Jamaica would be equal to two per cent of gross domestic product (GDP), based on calculations done by the Inter-American Development Bank (IDB).

Vaz indicated that based on a 2020 GDP of US$14.23 billion, savings would amount to approximately US$284 million.