Economic Transformation Strategy

CHAPTER 1 / INTRODUCTION from natural gas. Preliminary discussions have started for a project to build a liquefied natural gas power plant to gen- erate electricity locally. The project was approved by the Cabinet of Ministers in June 2018 and is aiming to replace the use of heavy fuel oil with liquefied natural gas (LNG), as it is more scalable and less damaging to the environment, taking into account the growing electricity consumption in the country. Electricity consumption in Seychelles is expected to keep on growing in line with expansion of human settlement and economic activity. This growth is likely to be driven by increased use of air conditioning, refrigeration, computers and other related appliances. To manage this rise in energy consumption, more sustainable building codes can be adopt- ed which include requirements for savings in cooling and electricity consumption and the installation of solar water heaters. Substantial, long-term savings in cooling needs and electricity consumption for hot water can be achieved with minor additional costs if buildings are constructed according to an appropriate building code developed for Sey- chelles' tropical climate. Waste-to-energy conversion could potentially be considered in the Seychelles context, allowing for effective and strategic use of waste generated domestically. This could potentially represent a sustainable pathway for combined reductions in greenhouse gas emissions as well a clean-up of waste from the environment. In cities around the world, governments are attempting to turn waste into energy as a means to curb the expansion of landfills. Wind is seasonal in the country and occurs mainly during the five months of the southeast monsoon period. For the rest of the year, wind speeds are low. There is presently a keen drive to grow the solar energy sector, - particularly using the roof space of existing buildings -, allowing for "green" and cost-effective power generation. This represents a step in the right direction to increasingly reduce our dependency on the import of costly fossil fuels. Climate change Over the past decades, global climate change has already led to a rise in temperature and higher sea levels around the Seychelles islands. This trend of global warming will continue, which may lead to adverse climatic phenomena such as flooding, coastal erosion, severe storms and heat waves. In addition, the ecosystems that provide natural protection from such extreme events, most notably the sensitive coral reefs, are likely to suffer further damage due to rising ocean temperatures. However, climate change also offers opportunities. Investing strategically in clean energy, ecosystem restoration and resilience can create new jobs and sustain growth, especially as innovative, 'climate-smart' investments raise the overall quality of Seychelles' capital stock and realize the vision of sustainable, shared prosperity centred around the blue economy. 22 32

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