ST. KITTS AND NEVIS PASSES LANDMARK SUSTAINABLE INVESTMENT BILL 

sustainable investment bill

ST. KITTS AND NEVIS PASSES LANDMARK SUSTAINABLE INVESTMENT BILL 

In a decisive move to align national development with long-term environmental and economic sustainability, the Government of St. Kitts and Nevis has passed the Special Sustainability Zone Authorisation Bill, 2025 – a bold legislative step toward creating a modern, resilient island economy. 

Prime Minister the Honourable Dr. Terrance Drew described the Bill as “a practical tool to attract foreign direct investment and create long-term job opportunities while protecting our environment.” He emphasised that the legislation “is a framework for doing big projects the right way,” underlining its importance in advancing strategic national goals. 

Prime Minister Terrance Drew announced the passage of the Bill on August 11, 2025, during a sitting of the National Assembly in Basseterre, calling it a “historic milestone” for the Federation.

“The Special Sustainability Zone framework brings structure, transparency, and accountability to our national development agenda,” — Prime Minister Honourable Dr. Terrance Drew 

The Bill is a key component of the Federation’s Sustainable Island State Agenda (SISA) and provides a foundation for attracting investment that delivers long-term value for citizens while upholding global sustainability standards. 

ALSO READ: SUSTAINABLE ISLAND STATES – THE ROLE OF ST. KITTS AND NEVIS IN PROMOTING SUSTAINABILITY IN THE CARIBBEAN. 

The SISA, developed through months of consultation with local stakeholders and international experts, was formally presented at the United Nations as a model for small island states. Prime Minister Drew stressed that SISA is not a “fly-by-night” plan, but a well-researched, internationally recognised strategy rooted in the realities of climate vulnerability, economic diversification, and social advancement. 

WHAT ARE SPECIAL SUSTAINABILITY ZONES?

The new legislation introduces Special Sustainability Zones (SSZs); designated areas where qualified developers and investors must commit to strict standards of environmental performance, infrastructure quality, and social benefit. 

These zones will be governed by clear, enforceable rules and democratic oversight, ensuring that the development process remains transparent, equitable, and efficient. 

EMBEDDING THE SEVEN PILLARS OF SUSTAINABLE DEVELOPMENT 

What sets this sustainable development Bill apart is its legal integration of the Seven Pillars of the SISA, making St. Kitts and Nevis the first country in the region to legally mandate holistic sustainability across all major development projects. 

The Seven Pillars of Sustainable Development and National Progress: 

These pillars are already being implemented on the ground. 

1. Water Security 

Ensuring access to safe, clean, and reliable water sources for all citizens remains a top priority. This includes investments in modern infrastructure for water storage, purification, and distribution, as well as conservation strategies to protect vital water resources against the impacts of climate change and overuse. 

2. Energy Transition 

The Federation is actively moving towards a cleaner, more sustainable energy future. Key to this transition is the development of geothermal energy in Nevis, alongside increased investments in other renewable sources such as solar, wind, and bioenergy. These efforts aim to reduce dependency on imported fossil fuels, lower emissions, and promote energy independence. 

3. Food Security 

The government is strengthening domestic food production by expanding agricultural and marine networks across both St. Kitts and Nevis. This includes supporting farmers, fishers, and agri-businesses through infrastructure development, training, and access to markets, with the goal of reducing food imports and increasing local resilience. 

4. Sustainable Industry 

National development is being driven by the expansion of sustainable industries, particularly in housing and infrastructure. This includes the creation of eco-friendly housing projects and settlements designed to accommodate population growth while minimising environmental impact and ensuring equitable access to quality living spaces. 

5. Sustainable Settlements 

Efforts are underway to build more resilient and environmentally conscious communities. This pillar emphasises recycling and waste reduction, with the Prime Minister continuing to urge all citizens to embrace recycling practices at home.  

Urban planning is increasingly focused on sustainability, green spaces, and disaster resilience. 

6. Circular Economy 

A transition to a circular economy is being promoted to minimize waste and maximize resource efficiency.  

Central to this is improving labour conditions and livelihoods – evidenced by ongoing efforts to increase the minimum wage. The approach also encourages innovation in sustainable product design, reuse, repair, and responsible consumption. 

7. Social Protection 

Expanding and strengthening the social safety net is a key focus.  

This includes the enhancement of social services, healthcare access, unemployment support, and community programmes to ensure that no one is left behind, particularly vulnerable populations such as the elderly, disabled, and low-income families.

“By law, Zones must advance multiple pillars. That means reliable water systems, renewable energy at scale, sustainable food systems, green industry and tourism, climate-resilient communities, circular-economy practices, and built-in social protection – like access to health services and fair dispute resolution.” — Prime Minister Honourable Dr. Terrance Drew

This ensures that investments contribute meaningfully to both economic development and the well-being of citizens. 

INVESTOR CLARITY, COMMUNITY VALUE 

For international investors, the Bill offers an attractive value proposition: a well-regulated, future-focused destination where economic opportunity is aligned with sustainability and social progress. 

“Investors value enforceable contracts and clear sustainability standards. They also value communities where talent wants to live – safe, clean, modern, and connected to nature.” — Prime Minister Honourable Dr. Terrance Drew 

Each Special Sustainability Zone (SSZ) must undergo an independent economic analysis before approval, forecasting job creation, investment, and long-term national revenue. 

Projects are also required to meet minimum thresholds, such as achieving at least 70 per cent renewable energy use, providing hurricane- and earthquake-resistant infrastructure, and ensuring public safety and access to healthcare. 

Importantly, while the framework provides investors with clarity, legal certainty, and streamlined processes, it does so without compromising the Federation’s values or natural environment. 

ZONE GOVERNANCE AND NATIONAL SOVEREIGNTY 

Each Special Sustainability Zone will be governed by a development agreement negotiated by the government and approved by Cabinet.  

If located in Nevis, the Nevis Island Administration must also be a co-signatory. All projects must meet strict milestones and delivery timelines. Failure to do so may result in agreements being amended or revoked. 

Importantly, the Bill reaffirms national sovereignty. “The Bill is crystal clear – core sovereign powers stay with the Government of St. Kitts and Nevis. Full stop,” said Prime Minister Drew.  

Private agreements cannot override constitutional authority, and any zone-specific laws must be ratified by the National Assembly and, where applicable, the Nevis Island Assembly. 

POSITIONING THE FEDERATION AS A REGIONAL LEADER 

By embedding sustainability at the core of its development framework, St. Kitts and Nevis positions itself as a first mover in the Caribbean, adopting a forward-thinking investment model that reflects the realities of small island states in the 21st century. 

“This Bill signals to the world that Saint Kitts and Nevis is open for business – on our terms, for our people.” — Prime Minister Honourable Dr. Terrance Drew 

The Bill also includes discipline-based incentives: government concessions are not automatic but must be proportional to the tangible public benefits delivered.  

As Prime Minister Drew explained, “If a developer delivers more, they can earn more. If they deliver less, they get less.” This ensures a balanced, responsible, and performance-driven approach to development. 

The Special Sustainability Zone Authorisation Bill, 2025, not only strengthens the Federation’s global investment appeal but reinforces its standing as a principled, visionary nation committed to building a safe, prosperous, and sustainable future.