THE Caribbean Development Bank has taken a cautious stance on calls for a regional “blue tax” on cruise ships, reasoning that governments should first focus on improving enforcement of existing environmental rules while exploring new financing tools to protect the region’s oceans.

The issue surfaced during the bank’s annual news conference in Barbados when the Jamaica Observer asked officials to respond to growing calls for Caribbean governments to impose environmental levies on cruise operators to help fund marine protection.

The proposal, which has gained attention in regional policy discussions, suggests that ships operating in Caribbean waters should pay a fee to help address pollution and environmental pressures linked to the cruise industry.

Responding to the suggestion, Acting Deputy Director of Economics Jason Cotton said the bank generally advises caution when governments consider introducing new taxes.

“The analogy is to speak about taxes,” Cotton said. “So the question has many dimensions, because what you’re speaking about is the introduction of a new tax and the suitability of that tax.”

He noted that before introducing new taxes, policymakers should first examine how effectively existing tax systems are functioning.

“Generally what we tend to advocate first is for improvement in efficiency or compliance, rather than the introduction of new taxes, because new taxes could have other adverse implications,” Cotton said.

At the same time, he acknowledged that Caribbean economies depend heavily on their natural environment — particularly coastal and marine resources — making sustainability an unavoidable policy concern.

“The Caribbean region… we depend on our natural resource endowments,” he said. “Sun or sea or sand or ocean resources — these are very important to us. And we need to ensure that we are balancing the utilisation of those resources with ensuring that they are sustainable over time.”

While Cotton did not rule out environmental levies entirely, he emphasised that decisions on new taxes ultimately fall within the authority of individual governments.

“The bank… I don’t think we have to make an utterance in terms of whether the introduction of one tax or another is important,” he said. “That is within the jurisdiction of a sovereign State.”

Instead, he said the development bank’s focus is on helping countries manage the long-term sustainability of their natural assets.

“What we are advocating for is a need to balance the need to utilise our natural resources and the sustainability of those resources over time,” Cotton added.

Blue economy financing

The exchange came shortly after CDB officials outlined plans for a major new regional programme aimed at expanding investment in the Caribbean’s blue economy.

Valerie Isaac, division chief in the bank’s environmental sustainability department, said the initiative is expected to mobilise roughly US$200 million to support projects tied to ocean-based industries and marine resilience.

“The blue economy programme that I spoke about is really intended to support both adaptation and access to financing for both the public and private sector,” Isaac said.

The programme is designed to help governments and businesses tap financing for activities ranging from marine conservation and coastal protection to fisheries, tourism and other ocean-based industries.

Officials say the initiative reflects a growing recognition that the Caribbean’s economic future is closely tied to the health of its marine environment.

For many countries in the region, the ocean is not just a natural asset but the foundation of key industries, including tourism, fisheries and shipping.

The debate over a potential cruise ship levy has emerged against a backdrop of increasing concern about the environmental impact of maritime activity in Caribbean waters.

Cruise tourism remains one of the region’s largest economic drivers, bringing millions of visitors to Caribbean ports each year. But environmental groups and some policymakers have raised questions about the industry’s waste management practices and the strain placed on fragile marine ecosystems. While the idea of a regional “blue tax” remains at an early stage, it brings into focus the challenge Caribbean governments face in balancing environmental protection with the demands of tourism and maritime activity.

Under its new 2026–2035 strategic plan, the CDB has placed greater emphasis on protecting natural resources and strengthening resilience across the region.

The strategy identifies environmental sustainability and the blue economy as key areas for investment over the coming decade, alongside economic diversification and social development.