• The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and install a solar photovoltaic system at their primary place of residence.
• Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, had informed of the initiative during his 2023/24 Budget presentation. “This Bill seeks to achieve this by setting out the appropriate legal framework that would allow individuals to benefit from this income tax credit,” he added.
• "This measure forms part of a much broader goal of reducing our dependence on fossil fuels and substantially increasing the share of renewable energy in our local energy mix,” Dr. Clarke told the House. The Minister highlighted that Jamaica aims to attain a 50 percent renewable energy share in electricity generation by 2030, emphasising the crucial role of targeted fiscal policies in reaching this goal.
• The Minister said that the major components utilised in the installation of a solar photovoltaic system, such as the solar photovoltaic panels, solar inverters, and solar batteries, including lithium-ion batteries, are also exempt from the payment of General Consumption Tax (GCT). He further highlighted that the fiscal measures are proof of the Government’s commitment to achieve the target of 50% use of renewables by 2030.”
• Additionally, the Bill provides for an income tax credit, among other benefits, at a rate of 30% of the acquisition and installation costs of a solar photovoltaic system for the taxpayer's primary residence, with a cap of $4Mn. According to Clarke, this means that the maximum credit an individual will be allowed to claim is $1.2Mn.

 (Source: JIS)

• Wigton Windfarm Limited (WIG), operating as Wigton Energy, has announced that it was shortlisted in the Generation Procurement Entity’s (GPE) tender for the supply of up to 100 megawatts (MW) of electricity generation from renewables.
• The GPE is the state-led entity that approves companies installing additional grid power.
• This means that WIG’s bid for the supply of 49.83MW was one (1) of two (2) bids, which was successful in the economic evaluation phase of the tender process. It will now proceed to the technical evaluation phase prior to the final award being made to the successful bidders by the GPE.
• This reflects WIG’s strategy to expand its offerings from wind generation to also include solar energy to grow the company further.
• Additionally, if the company succeeds, it will be instrumental in achieving the country’s renewable energy target of 20% by 2030. As of May 2023, about 11% of the country's energy production came from renewable sources.

 (Sources: JSE & NCBCM Research)

• In a milestone advancement for the oil and gas industry in the region, ExxonMobil Guyana commissioned its newly arrived capping stack at the Guyana Shore Base Inc (GYSBI) in Houston, East Bank Demerara.
• This equipment is set to bolster the country’s emergency response and spill containment capabilities, marking a milestone in ExxonMobil’s commitment to safety and environmental stewardship.
• During a media event at GYSBI, President of ExxonMobil Guyana Limited, Alistair Routledge, said that this is in keeping with the company’s commitment to safety and protection of the environment.
• The Exxon official pointed out that the capping stack is a testament to ExxonMobil’s dedication to maintaining robust in-country technological capabilities.
• The newly installed capping stack is a rare and sophisticated piece of equipment, being one of only 13 in existence globally. It is designed to cap a leaking well by creating a seal, much like a bottle cap, to safely stop the flow of oil until engineers can permanently seal the well. This equipment can connect to virtually any subsea wellhead if a well’s built-in blowout protector fails, providing an additional layer of safety.
• The arrival of the capping stack is a significant milestone for Guyana, making it the only oil-producing nation in the region with such equipment readily available. This addition not only meets a condition of ExxonMobil’s Yellowtail production licence but also enhances the country’s ability to mitigate the risk of unplanned hydrocarbon releases into the environment.

(Source: Guyana Chronicle)

• Brazil's Senate Constitution and Justice Committee postponed for a week voting on a constitutional amendment proposal granting the central bank financial autonomy to allow time to draft a new consensus text. The decision followed a suggestion by Senator Jaques Wagner, the government leader in the Upper House.
• After attending a meeting with Finance Minister Fernando Haddad earlier on Wednesday, July 10, Wagner said the government agreed with granting financial autonomy to the monetary authority but did not support turning the institution into a public company, as proposed in the original draft.
• Brazil's Congress granted the central bank operational autonomy in 2021, separating the central bank governor's term from that of the country's president. Financial autonomy would give the bank additional independence from the executive.
• Since taking office in January 2023, President Luiz Inacio Lula da Silva has expressed discomfort with working with a monetary policy chief appointed by his predecessor, Jair Bolsonaro. However, Governor Roberto Campos Neto has publicly defended financial autonomy as a necessary step for the central bank to have its own budget, allowing it to improve staffing and address technological challenges.

 (Source: Reuters)

• U.S. consumer prices fell for the first time in four years in June amid cheaper gasoline and moderating rents, firmly putting disinflation back on track and drawing the Federal Reserve another step closer to cutting interest rates in September. The second straight month of benign consumer price readings reported by the Labour Department on Thursday should help to bolster confidence among officials.
• The report also showed a measure of underlying inflation, posting the smallest increase since August 2021 on a monthly basis. The consumer price index dipped 0.1% last month, the first drop since May 2020, after being unchanged in May, the Labor Department's Bureau of Labor Statistics said. The CPI was weighed down by a 3.8% decline in gasoline prices, which followed a 3.6% decrease in May. Shelter costs, which include rents, increased a moderate 0.2% after advancing 0.4% in May.
• Food prices rose 0.2% after edging up 0.1% in May. Grocery store prices ticked up 0.1%, with increases in dairy products, meat, fish, and eggs offset by declines in the costs of fruits and vegetables as well as cereals. In the 12 months through June, the CPI climbed 3.0%, the smallest gain since June 2023. That followed a 3.3% advance in May. Economists polled by Reuters had forecast the CPI ticking up 0.1% and gaining 3.1% year-on-year.
• The broad moderation in inflation aligns with reports from retailers about consumers pushing back against higher prices. Retailers, including Target and Walmart, have cut prices on a range of goods. It was also a rare dose of good news for President Joe Biden in recent days, whose popularity has been eroded by the high cost of living.
• The annual increase in consumer prices has slowed from a peak of 9.1% in June 2022. The CPI report followed news last week that the unemployment rate rose to a 2-1/2-year high of 4.1% in June from 4.0% in May. Economic growth has also slowed in response to the central bank's hefty rate hikes in 2022 and 2023, with second-quarter gross domestic product forecast near the 1.8% annualized rate that policymakers view as the non-inflationary growth pace.

(Source: Reuters)

• Britain's economy grew more quickly than expected in May, providing some momentum for the new government of Prime Minister Keir Starmer but adding to doubts about whether the Bank of England will cut interest rates next month.
• Economic output increased by 0.4% in May, after zero growth in April, the Office for National Statistics said. A Reuters poll of economists had pointed to a 0.2% monthly increase.
• The strength of the upturn could dissuade the BoE from beginning to cut interest rates as soon as Aug. 1, its next scheduled monetary policy announcement date. Three policymakers this week emphasised the strength of domestic price pressures.
• May saw a broad-based increase in economic output, with the services, manufacturing, and construction industries all growing, and the latter grew by 1.9% in the month, driven by house-building. The figures represented an early boost for the new Labour administration, which has set itself the aim of achieving the fastest growth among the Group of Seven advanced economies on a sustained basis.
• Britain's economy appears to have snapped out of its low-growth rut, at least for now. Output has grown by 1.5% since the turn of the year, marking its best five months since early 2017, excluding the rebound from the COVID-19 pandemic.

(Source: Reuters)

• The Bank of Jamaica (BOJ) is currently leading an initiative to develop a centralised electronic Know Your Customer (eKYC) public utility system, which will streamline and simplify the process for opening a bank account.
• This will simplify the process for Jamaicans who wish to transfer their accounts to the bank that offers the best services and products. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, disclosed a statement in the House of Representatives, on Tuesday (July 9).
• “In such a system, the customer information required for various banking transactions is stored digitally in a database that is kept securely and confidentially by a central trusted authority. When a customer is conducting business with any financial institution, that institution can access the customer’s information immediately, verify that the person is exactly who they say they are, and complete their transaction in minutes, not days or weeks,” he added.
• Clarke informed that the product is expected to be realised within the next two years, while adding that the system will achieve several objectives. “By empowering account holders, it will boost competition within the banking sector, realise essential national digital and financial inclusion goals, while at the same time modernising regulatory oversight,” the Minister noted.
• He argued that this simplification will also boost compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws and regulations across the financial sector.
• Clarke highlighted that the initiative also benefits commercial banks by significantly reducing operational and administrative costs associated with compliance management. He further stated that this effort will stimulate competition within the banking sector and improve the efficacy of monetary policy by facilitating the easy transfer of customer accounts from one bank to another.

(Source: JIS)

• Prime Minister, the Most Hon. Andrew Holness, says the Government is closely monitoring market activities to ensure unscrupulous individuals do not exploit the disaster and dislocation resulting from Hurricane Beryl’s passage on July 3 for financial gain.
• Speaking during a statement to the House of Representatives on Tuesday (July 9), Mr. Holness warned against price gouging, due to the possible impact of the hurricane on goods and services.
• Price gouging is the increase in prices to unfair levels due to a lack of supply or boost in demand.
• “We issued an order under the Trade Act to prevent price gouging on essential goods. I ask the public to report any instance of price gouging, meaning an increase in price over and above what you were paying for the same product or service before,” Holness stated.
• Prime Minister Holness maintained that citizens should have access to the necessary supplies at fair prices while advising that reports of gouging can be made to the Consumer Affairs Commission or directly to the Ministry of Industry, Investment, and Commerce.

(Source: JIS)

• Shell Trinidad and Tobago Ltd announced yesterday that it had taken a Final Investment Decision (FID) to develop the Manatee gas field, projected to produce a peak of 604 million standard cubic feet of natural gas per day.
• Shell stated that this development is part of its overall plan to expand its liquefied natural gas (LNG) business, as it believes that LNG will play a critical role in the global energy transition, with overall demand estimated to rise by more than 50% by 2040.
• The Manatee gas field is located in the East Coast Marine Area (ECMA) in Trinidad and Tobago and is part of the cross-border Loran-Manatee discovery, shared by this country and Venezuela. The field is believed to hold around 10 trillion cubic feet (tcf) of natural gas, with 7.3 tcf on Venezuela's side and the remaining 2.7 tcf on T&T's side.
• Energy Minister, Stuart Young expressed personal gratitude for the opportunity to negotiate the agreement with Venezuela to delink Manatee from Loran, allowing Trinidad and Tobago to develop the Manatee field independently. This was achieved in 2019. He added that the energy ministry subsequently negotiated and executed a production-sharing contract with Shell for the development of the Manatee field in November 2021.
• Manatee is slated to start production in 2027. Once online, Manatee is expected to reach peak production of approximately 104,000 barrels of oil equivalent per day (boe/d) (604 MMscf/d).
• The Energy Chamber of Trinidad & Tobago said it welcomed the news of Shell's FID for the development of the Manatee field. 'This is a very significant development for Trinidad and Tobago and will help create stability for the country's gas industry and by extension, our energy services companies.’
• ‘This is a major development, projected to deliver significant volumes of natural gas, equivalent to around 20% of current national gas production. This project has had a long and complicated history, not least because it is part of a field that straddles the maritime boundary with Venezuela. Delivering this project involved significant complex negotiations by the Government of Trinidad and Tobago, Shell, the Government of Venezuela and numerous other stakeholders,' the Energy Chamber stated.

(Source: Trinidad Express Newspaper)

• The Panama Canal expects to complete a billion-dollar construction of a new water reservoir within six years that will help ensure the passage of 36 ships a day, the administrator of the global waterway said on Monday.
• The Indio River reservoir project would become part of the network of existing artificial lakes that allow for safe passage through the canal and provide water for human consumption.
• "We are looking at six years," canal administrator Ricaurte Vasquez said. Vasquez said the project "would provide a little more certainty to maintain 36 transits per day, a higher level of reliability for the route."
• Increased rainfall in recent months has allowed the canal, the world's second-largest, to replenish its watershed, leading to an increase in transits that had been severely restricted last year amid a drought. Last month, the Panama Canal said after recent rains boosted water levels, it would increase the total number of available slots in both Neopanamax and Panamax locks to 35 slots after Aug. 5.
• Ricuarte estimated the project would cost around $1.2Bn, plus an additional $400Mn in investments in neighbouring communities.

(Source: Reuters)