As countries pursue their climate ambitions towards achieving net zero by 2050, carbon pricing has become a key element on the agenda. While this practice attaches a cost to emissions, it may lead to carbon leakage as companies shift their carbon-intensive production activities abroad to countries with less stringent climate policies than the domestic economy. One mechanism to manage differences in carbon pricing due to a lack of co-ordination and uniformity among implementing countries is the establishment of border carbon adjustments (BCAs).
2026
In July 2024, Curaçao became an Associate Member of the Caribbean Community (CARICOM). As Curaçao deepens regional integration, opportunities for improving intra-regional trade are being explored through, for example, negotiation of a Partial Scope Trade Agreement (PSTA) with Trinidad and Tobago. This paper investigates the potential for boosting trade between Curaçao and Trinidad and Tobago through an empirical analysis of each country’s comparative advantage. Through a suite of international trade-related tools, including the Balassa Revealed Comparative Advantage, Trade Complimentary, and the Trade Competitiveness Analysis of Nations (TradeCAN) methodology, the research highlights products and sectors with the highest potential for expanding trade in goods and services.
Trinidad and Tobago ranked as the highest per capita emitter of carbon dioxide in Latin America and the Caribbean in 2023, with estimated emissions of approximately 22.8 metric tonnes of CO₂‑equivalent per person. In support of the country’s Nationally Determined Contributions (NDCs) and broader climate mitigation efforts, this paper assesses the macroeconomic and environmental implications of introducing a domestic carbon tax. Using the IMF–World Bank Carbon Policy Assessment Tool (CPAT), a set of calibrated policy scenarios are developed to evaluate how carbon pricing (combined with complementary fiscal measures) affects emissions, economic activity, and external balances.