Germany’s government has agreed to provide just under $1.6 million in funding to support reforms in Grenada’s energy sector.

The funding from Germany’s Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety is for a project called “Reform of the Electricity Sector to support Climate Policy in Grenada.”

The project, which will launch later this month, aims to support Grenada both in the use of green energy and the reduction of carbon dioxide emissions.

The plan is for institutional amendments to allow for more investments in green energy and energy efficiency, according to a statement from Grenada’s government.

“Grenada has great potential for renewable energy and hence a unique opportunity to reduce its carbon footprint,” said Dr Michael Freudenberg, Deputy Head of Mission of the German Embassy in Port-of-Spain with responsibility for Grenada. “By doing this, Grenada can lead the way for small island states in amending institutional structures to follow the path of a sustainable society.”

The project is the second of its kind by Germany’s government.

The first one launched in April 2013, aiming to increase resilience of climate-change vulnerable communities in Grenada.