#1Barbados Clean Tech Industry Report 2022 - summary Published by the BLOOM Clean Tech Cluster Barbados bloom CLEANTECH CLUSTER BARBADOS Developed with the support of UNIDO, GEF and Export Barbados (formerly BIDC). UNIDO gef EXPORT BARBADOS#2Table of contents 1. Introduction and context 2 Conceptual approach 3 National policy documents 4 Clean tech industry profile Clean tech cluster memberships, 5. partnerships and services 6 Stakeholder views 7. Financing options 8. Clean tech tracking framework Page 2 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) UNIDO gef EXPORT BARBADOS#3Introduction and context Background and broad aim Supporting the implementation of the National Strategic Plan 2006- 2025, which aims to make Barbados the "most environmentally advanced green country in Latin America and the Caribbean" The project aims to strengthen the local supply side of green quality products and services and the creation of an enabling environment for clean tech entrepreneurship and innovation Industry report acts as a knowledge product and in doing so it: UNIDO bloom BARBADOS CLEANTECH CLUSTER gef M.I.B.I. MINISTRY OF INTERNATIONAL BUSINESS & INDUSTRY EXPORT BARBADOS Formerly BIDC Provides National context; Assesses the development of Barbados' clean tech ecosystem; Characterizes the profile of the clean tech industry; Provides an overview of the local, regional and global clusters; Summarizes the key results of the stakeholder consultations; Creates an awareness overview of what is being done, in the highest ranked challenge areas, at a local level; and Provides responses to select indicators as set out in the GEF CEO Endorsement document. Barbados aims to be the "most environmentally advanced green country in Latin America and the Caribbean" Limitations ► Challenges collecting relevant up-to-date data to provide conclusive statically relevant reporting. Hence the findings are more qualitative in nature. ► Participation rate with some stakeholder groups ranged between 31% - 45%. ► Profile data provided by 33% and of that some opted not to respond to questions requesting confidential data. ► Some industry characteristic are inconclusive (eg. annual revenue) Page 3 EY Mind the Bridge 29 November 2022 Non-performing Loans Market Assessment: Dissemination event UNIDO gef EXPORT BARBADOS#4Introduction and context u N N N M M M U I Clean Tech Represents the technologies and business model innovations that enable the transformation to a more resource efficient and low carbon economy. Advanced Materials Biofuels Biochemicals Bio-based Polymers Materials and Chemicals Discovery Composites Mobility and Transportation Engine Efficiency Engine Design Engine Materials Electric Vehicles Micro Mobility e-Mobility Infrastructure Ride Sharing Charging Points Transport Efficiency Autonomous Vehicles Sensor Technologies Predictive Maintenance and Repair Low GHG Heavy Duty Road Transport Water Management Recycling ‣ e-Waste Wastewater Industrial Technologies Circular Economy Circular Design Reuse Secondary Material Markets, Biomass Supply Waste-to-energy Agriculture and Food Food Production Methods Carbon Intensive Food Production Replacement ► Synthetic Proteins Insect Proteins Low GHG Farming Precision Farming Vertical Farming ► Aeroponics A Soil Carbon Emission Reduction Food Supply Chain Management Fertilizers ▸ Agritech Robotics ▸ Agricultural Genomics, ▸ Aquaculture Logistics and supply chain Delivery Tech Safe Transport and ▸ Circular Supply Chains Energy and Power Alternative Fuels Renewable Energy Energy Storage ► Supply-demand ► Balancing Mechanisms ▸ Energy Efficiency Oil and Gas Efficiency Fossil Fuel Energy Generation Efficiency Wind Energy Solar Energy Nuclear Generation Battery Technology Construction and Proptech Urban Planning Urban Design Smart Building ►Building Management Thermal Storage Innovative Construction Methods Lighting, Fixtures, Fittings, Heating ► Cooling Energy Consumption Environmental Technologies CO₂ GHG Capture and Storage GHG Removal GHG Storage Carbon Footprint Monitoring Carbon Capture CCUS Carbon Sequestration Water and Blue Economy Desalination Water Purification Water Distribution Wastewater Treatment Leak Prevention Water Management Systems Ocean technologies Environmental Quality and Safety AAAAA Environmental Management Systems Environmental and Natural Resource Management Environment Health and Safety (EHS) Reforestation Afforestation Land Resource Management Deforestation Prevention Smart Metering Efficient Construction Modular Construction 3D Printing Additive Manufacturing Imagery Computing BIM Sub-technologies / sub-verticals associated with the technology applications Page 4 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) UNIDO gef EXPORT BARBADOS#5Conceptual approach Entrepreneurs Build knowledge capacity Academia 12 PENTAGON MODEL Startups is the first proxy to measure the "innovation economy" Capital Support R&D and transition from incubator to accelerator eco Fuel Interview and workshop participants belong to 41% Energy and Power 29% Circular Economy 11% 4% 4% 41% O 11% Agriculture and Food 11% Mobility and Transportation 4% Advanced Materials 4% Water and Blue Economy 11% 29% Government Corporates Enabling policy framework e Proven IIIII capacities of 800 an eco-system Ag Workshops 3 Workshops conducted 2 Hours in duration for each workshop 2 Break-outs for focus group discussion Interviews A pre-determined array of questions were prepared to facilitate the discussion and to ensure consistency across the interviewees. The intent was to assist in developing a baseline for clean tech in Barbados. 12:29 EY bloom ( Mind the Bridge M.I.B.I. Page 5 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) Surveys From your knowledge and experience, can you tell us which of the following are opportunities or challenges for the Clean Tech industry in Barbados? "Please re-order the he list below (using the drag and drop feature) to indicate which topic you prioritize the most, on a scale of 1-7 (1 being the most important) Finance: Consider access to a wider pool of grants, investors, funds, partners, etc Education and knowledge: 2 "Consider sail availability data inputs for decision making, etc Legislative: Consider permit process, facilitator ecosystem, etc Research and development: Questions 12 Completion time 10-min Survey views 58 Surveys completed 18 12:3 EY bloom 9 MI.B.L Thank you for your valuable time and input P UNIDO get EXPORT BARBADOS#6National policy documents Barbados National Energy Policy 2019-2030 "To provide clear direction to the government in the short, medium and long term, for the development of renewable and non-renewable aspects of energy" BARBADOS NATIONAL ENERGY POLICY 2019-20304 National Strategic Plan of Barbados 2006-2025 Provides the "...blueprint for the realization of Barbados' vision of becoming a fully developed society that is prosperous, socially just and globally competitive by the end of the first quarter of this century." Global Excellence Barbadian Traditions The National Strategic Plan of Barbados 2006-2025 THE BARBAD SUSTAINABLL DEVELOPMENT POLICY BARBADOS 2021 UPDATE OF THE FIRST NATIONALLY DETERMINED CONTRIBUTION Page 6 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) National Sustainable Development Policy An approach to sustainable development "...which aims to deal with individual issues from an integrated and holistic perspective" ENERGY 72% Intended Nationally Determined Contributions To implement policies "...to seek to be, by 2030, the first 100% green and fossil-fuel free island-states in the world" 72% of the GHG emissions in Barbados were generated from energy consumption with energy generation accounting to 67% of that amount and transport accounting for the remaining 33%. WASTE 16% 16% of the GHG emissions in Barbados are generated from waste. UNIDO gef EXPORT BARBADOS#7National Context Diagnosis ENERGY AND POWER sment for lgens aans VAT exemption Import duty exemptong Smart Fund 1: loans, s, grants Green Climate Finance Bank Feed In Tarriffs: up to 10MW VAT exemptions VAT exemptions VAT AT exemptions Zero rating for RE & EE PP&E materials Import duty exemptions Cleaner Fuels & RE Project Smart Fund 1: loans, grants Smert Fund 2 capacity building, training Feed In Tarriffs: up to 10MW VAT exemptions Import duty exemptions Cleaner Fuels & RE Project Smart Fund 1: loans, grants en Cerence Bank Smart Fund 2: capacity building, training Zero rating for RE & EE PP&E materials Import duty exemptions Sant Fund 2 stud es design. Es essesme Smart und loans, grants Enhanced Credit Guarantee Fund Cleaner Fuels & RF Project Feed In Tarriffs up to 10MM Smart Fund 2: studies, design ES assessment VAT exemptions Enhanced Credit Guarantee Fu Feed In Tarriffs: up to 10MW Smart Fund 2 studies, design, ES assesse Fund Enhanced Credit Guarantee Fund Green Climate Finance Bank Zero rating for RE & EE PP&E materials Green Climate Finance Bank Import duty exemptions C&Reject VAT exemptions MOBILITY AND TRANSPORT Lowering of tariffs TAX VAT holiday NEWS Zero mission Interest free loans WASTE MANAGEMENT WASTE GENERATED POLLUTION 1000 Tonnes Top 30 On average, approximately 1,000 tonnes of garbage is generated in Barbados on a daily basis. (Barbados Solid Waste Management Programme) DIVERSION RATE 69% Barbados landfill diversion rate is 69% which is among the highest in the region despite the lack of scale for recycling industries. (July 2021 update to IDNC) Barbados is 1 of 10 Caribbean islands which are in the top 30 global polluters per capita (Forbes, 2019) SEWAGE CONNECTIONS 3% Barbados has amount lowest level of sewerage connections in Caribbean at 3% (IDB Caribbean Water Study, October 2021) Import duty reduction INITIATIVES GOB procure ment policy ENERGY AND POWER ► Diversity of sustainable energy options with a trajectory to achieve 100% renewable energy by 2030. ► Offers significant opportunities for local entrepreneurship and international investment. ► Increase in decentralized solar PV installations ▸ Encourage large-scale use of RE sources ▸ Decrease the costs of energy to the population Liberalize the production of electricity Key goals and/or objectives MOBILITY AND TRANSPORT To eliminate the use of diesel and gasoline transport by 2030 (Barbados National Energy Policy ► GOB procurement policy to prioritize the purchase of electric or hybrid vehicles. The aim is to operate a full fleet of electricpublic transport buses by 2030. ► A reduction of 29% in non-electric energy consumption including transport, compared to Business as Usual ("BAU") scenario in 2029. WASTE MANAGEMENT Achieve an energy mix-target by 2030 from which 15MW installed capacity will be from Biomass and Waste-To-Energy ► Achieve 20% decrease in waste emissions Phase out natural gas and LPG by 2030; natural gas to be replaced by bio-methane produced from renewable biogas sources Page 7 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) UNIDO gef EXPORT BARBADOS#8eco Fuel Barbados Clean tech industry profile Clean Tech Industry Area Concentration (Barbados) 3% Waste Management 5% Advanced Materials Mobility and 8% Transportation 10% Agriculture and Food 10% Water and Blue Economy 17% Circular Economy 3% 5% 8% 47% 10% Energy & Power is the largest concentration of companies in the Clean Tech sector. Together with Circular Economy, Water & Blue Economy and Agriculture & Food, they represent 83% 10% of companies in the industry. 17% 47% Energy and Power י GGNN ww Number of Clean Tech companies 15 25 20 35 Number of Clean Tech Companies Established in a Given Year/Period 27 27 14 14 5 • After 2017 Before 2010 Between 2011-2017 ⚫ No Data No. of companies 12 20 10 Number of Clean Tech Jobs Per Employee Range 8 2 11 5 2 1-10 11-50 101-250 ■ Employee Range US$50k-250k 3% Approximately 85% of the respondents - for which data was available - were operating in the Clean Tech sector before 2017 with the median corporate age being 12 years (i.e. established in 2010). No data 87% Page 8 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) US$0.5k 2.5m 7% US$2.5 - 5m 3% Approximately 444 individuals are employed at the 18 companies that provided details on their work-force, the gender ratio is approximately 69% males to 31% females. US$13.8m is the average annual turnover of the 13% of the clean tech firms which provided responses to the survey question on their annual turnover. One-half of the firms earn annual revenues between US$0.5m - $2.5. UNIDO gef EXPORT BARBADOS#9Clean tech cluster memberships, partnerships and services 16 Startups & SMEs Onboarded 0000 Match-Making Services BLOOM offers the following services Capacity Building Business Intelligence Business Incubation Services Advocacy Services services Services Makerspace Services Project development BLOOM has a network of partnerships Diproinduca Inc. Services Joint Partners with BLOOM Caribbean Circular Economy Accelerator (REGIONAL CLUSTER) The aim of this program is to make participants investment ready for pre- seed and pre-series A investments where IDB is working as an anchor investor. IDB LAB CIRCULATE CAPITAL IDB Lab is the innovation || Circulate Capital is an || investment management I laboratory of the Inter- American Development !! firm dedicated to Bank Group, The leading source of financing for improving lives in Latin America and the Caribbean. || || financing innovation, || companies and ☐ SAGANA ¡¡ Sagana work with !! foundations, development! finance institutions and companies on investing in II companies and funds thatl !! infrastructure that prevent!! are solving the world's || || the flow of plastic waste biggest social and ¡¡ into the world's ocean Ij environmental !! while advancing the challenges. || || circular economy. | 16 Cooperating Partners Page 9 EY Royal Academy Of Engineering ("RaEng") Sagana bloom BARBADOS CLEANTECH CLUSTER University Of the West Indies Global Network inal Sustain Global Network For Regional Sustainable Energy Centres Mind the Bridge 29 November 2022 Other BLOOM Cooperating Partners Barbados Chamber Samuel bcc of Commerce and Industry Jackman Prescod Institute TCI Network Caribbean Centre For Caribbean Investment CREE Renewable Energy And Energy Efficiency Forum Climate KIC eit Europe Circulate Capital S ACT Inter- American Development Bank ACT Renewables Hub International Association of Science Parks Caribbean Climate Climate Innovation Centre Barbados Clean Tech Industry Report (Summary) Joint Partners with BLOOM || Leaders in Innovation Fellowship (GLOBAL CLUSTER) The aim of the LIF Global is to connect global startups with UK business ecosystem including international network of peer innovators and mentors, leading business schools, investors and innovation funds. Royal Academy of Engineering RaEng is a charity that delivers public benefit from engineering excellence and technology innovation. Its overarching goal is to harness the power of engineering to build a sustainable i society and an inclusive economy that works I for everyone. LIF is one of its programs in which it helps engineers worldwide to commercialize their j innovations. BLOOM's role bloom BARBADOS CLEANTECH CLUSTER BLOOM is responsible for communications; marketing and I selection and onboarding of the new LIF applicants. UNIDO gef EXPORT BARBADOS |#10Stakeholder' views - key priorities for the clean tech industry to develop Stakeholder views on key priorities for clean tech industry to grow Agriculture and Food Mobility and Transportation 34 25 92 10 107 13 16 8 Water and Blue Economy Energy and Power 37 71 13 13 8 12 93 19 4 Environmental Quality and Safety 23 86 0 17 Waste Management 30 73 13 10 GHG Emissions Management 6 22 23 Construction and Prop-tech 36 39 29 Circular Economy 10 23 53 5 17 Advanced Materials 22 530 30 Logistics and Supply Chain 11 23 42 0 31 20 40 60 80 100 120 140 160 180 200 Tally of scores ■Academia Chambers & Associations Corporate Community Government ■ Startups Quartile 1 ■Quartile 2 ■Quartile 3 Quartile 4 Logistics & Supply Chain Agriculture and Food Advanced Materials Circular Economy Mobility and Transport Water and Blue Economy Construction and Prop-Tech Energy and Power GHG Emissions Management Waste Management Envion. Quality & Safety High cost of food should give rise to exploring options such as containerized agriculture. Reliance on imports and drive towards food security. Provide sustainable food options Diversification of food crops with higher yields. Agriculture and Food Mobility and Transport Water and Blue Economy Contributes towards the reduction of emissions and fuel import bill (particularly at this time given the high and rising fuel prices) The existence and prevalence of alternative energy sources would allow for a cost effective and cleaner system of private and public transport Barbados is a water scarce island Obvious need for systems to catch and filter rain- water; currently Wastewater treatment is an option but is energy intensive therefore, solar and biomass can facilitate balance Approximately (41%) of non-revenue water is pumped by BWA. Page 10 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) UNIDO gef EXPORT BARBADOS#11Stakeholder' views - key challenges Key Challenges identified by all stakeholders Tally of scores 13 Finance 48 89 12 13 Education and Knowledge 40 103 6 8 Legislation 51 87 11 10 Research and Development 6 29 74 8 b Innovation 4 28 85 3 4 Promotion and awareness 2 21 52 3 2 Information availability 26 42 4 20 40 60 80 100 120 140 160 180 ■ Academia Chambers & Associations ■ Corporate ■Community ■Startups Key Challenges identified by Academia Finance Education... Legislation Research.. Innovation Finance Limited financing options available; Lack of seed financing; Conservative lending practices by commercial lenders; Paucity of grants and concessional loans available. Key Challenges identified by Start-ups and Corporates in the Clean Tech Industries Legislation Finance Education.. Research.. Innovation Key Challenges identified by the Community Education.. Finance Legislation Innovation Research.. Promotion... Information.. 50 100 50 100 150 Tally of scores Tally of scores Education and Knowledge Lack of public awareness about clean tech; How to move an idea through to commercialization; Lack of revolutionary training that is bespoke, Low priority given to science and technology; Enhanced clarity about approvals for new RE projects; Centralizing the approval process; Certainty of the impact of unbundling of BL&P's licence and the PPA that will govern large scale projects Communication between the Min. of Energy and BL&P and enhanced logistics to reduce time between RE application approvals grid connections Promotion.. Information.. Information... Promotion... 5 10 15 Tally of scores Page 11 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) Legislation UNIDO gef EXPORT BARBADOS#12Financing options Options Non traditional There are a range on financing options either currently available or imminent and which are outside the traditional commercial banks. 1 Green Climate Finance Bank Investment institution for "good assets" to package ▸ Size and standard Catalyst for mobilizing capital ▸ Climate mitigation and adaptation focus Caribbean Development Bank ► Environmental sustainability Cohort of businesses Projects appraised on the basis of technical feasibility, environmental and social impact, gender analysis, climate vulnerability, etc. Inter-American Development Bank Private sector arm - IDB Invest IDB is 1 of 3 donors to the Compete Caribbean Program ► Direct Firm Support ► Support to Cluster initiatives The Trident Angels Investor Network was an initiative of the Barbados Entrepreneurship Foundation to allow for equity financing of new companies in Barbados. "Team of One" Entrepreneurs operate as "teams of one" rather than as and entrepreneurial team of co-founders 2 Risk Aversion 3 Small funnel Investors in Barbados tend to be more risk averse than their counterparts in larger international markets The quantum of business plans proposed was relatively small Page 12 EY Mind the Bridge 29 November 2022 Barbados Clean Tech Industry Report (Summary) 4 Target market Entrepreneurs in Barbados targeted small markets (i.e. Barbados) with a view of later expansion to even smaller (regional) markets rather than targeting major world markets (US, UK, Canada, etc.). Therefore, revenue growth is stymied. UNIDO gef EXPORT BARBADOS#13PUBLIC POLICY Barbados' positioning in the tracking framework 5 EARLY-MOVER Costa Rica Barbados Dominican Republic LEGACY Positioning Analysis EU27 ADVANCED Israel United States MATURITY Early-Mover Early-Movers have ! already put in place structured strategies and policies, thus having set favourable conditions for the growth of a sustainable Clean Tech i ecosystem of thriving SMEs, startups and |_ scaleups. Legacy | Legacy ecosystems have yet to evaluate and structure a Clean Tech- related strategy and policy orientation, while their private sector ecosystem of SMEs, startups, and scaleups has yet to form. Advanced Advanced ecosystems present the most favourable combination of factors for the sustainable development I of a Clean Tech ecosystem, including a I mix of public institutional efforts Maturity | | | Mature ecosystems host an already thriving Clean! Tech SME, startup and scaleup ecosystem, without the necessary backing of public institutions and policies. | | 0 Policy Indicators Comparison INNOVATION OUTCOME 5 Innovation Outcome Indicators Comparison Country Area Strategy Incentives Score Score Research Score Average Country Area Scaleup Score Scalers Score Capital Raised Score Density Investing Ratio Ratio Cleantech Jobs Average Barbados 3/5 4/5 1/5 2.7 Barbados 0/5 0/1 0/5 2/5 1/5 1/5 0.7 Dominican Republic 3/5 2/5 1/5 2.0 Dominican Republic 0/5 0/1 0/5 0/5 0/5 0/5 0.0 Costa Rica 5/5 3/5 2/5 3.3 Costa Rica 0/5 0/1 1/5 1/5 1/5 1/5 0.7 Israel 3/5 4/5 4/5 3.7 Israel 1/5 1/5 1/5 5/5 5/5 4/5 2.8 EU27 5/5 5/5 5/5 5.0 EU27 4/5 2/5 2/5 2/5 2/5 2/5 2.3 United States 3/5 3/5 4/5 3.3 United States 5/5 5/5 5/5 3/5 4/5 5/5 4.5 Page 13 EY Mind the Bridge 29 November 2022 UNIDO Barbados Clean Tech Industry Report (Summary) Barbados is considered an Early-Mover with favourable conditions for growth and development of a sustainable clean tech ecosystem given its structured strategies and policy-oriented efforts. gef EXPORT BARBADOS#14EY | Building a better working world EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets. 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