GUYANA is positioning itself to be a regional model in terms of sustainable development along the lines of a low carbon development trajectory, comparable to that of Norway. This is according to President of the Inter-American Development Bank (IDB) Mauricio Claver-Carone during a recent virtual roundtable with Caribbean journalists. Norway, it has to be said, had provided significant financial support to Guyana in its efforts to transition to a low carbon economy and is itself regarded globally as a model country in terms of sustainable and eco-friendly development.

“Our goal is for Guyana to be the Norway model, and if we can help do that successfully, then it will be the first time we see that in Latin America and the Caribbean, we can help a country through its entire development phase and green transition,” said Claver-Carone.

These are indeed encouraging words emanating from the IDB President even though it must be noted that the country had embarked on a low carbon development model since 2008, long before the emergence of oil and gas. Indeed, Guyana was the first country in the developing world to embark on a low carbon development model of development, an indication of the visionary thinking of its leaders.

The strategy has gained the commendation of several world leaders and is now being embraced by several other countries in their attempt to promote development within the framework of a low carbon trajectory.

Now that Guyana is an oil producing nation, the strategy has been revised to take into account the country’s new status with a clear focus on finding the right balance between economic development and environmental protection.  At the last Conference of Parties (COP) in Glasgow, Scotland, President Ali had committed Guyana to end deforestation by the end of this decade, which is a bold decision given the fact that Guyana has a forest cover of over 80 per cent and a strong forestry sector in terms of its contribution to the overall economy.

With Guyana now a significant player on the international petroleum stage, there are some  concerns regarding the impact oil and gas could have on the environment, especially in the context of the country’s low carbon growth trajectory, but as pointed by both President, Dr. Mohamed Irfaan Ali and Vice-President, Dr. Bharrat Jagdeo, all possible safeguards are in place to ensure that oil and gas production will not be done in a manner that will jeopardise the environmental health and safety of the Guyanese people.

Guyana, because of its vast forest cover has net zero carbon emissions and plans are well advanced to sell carbon credits on the international market. Indeed, the country stands to benefit from millions of dollars from the sale of carbon credits which could be utilised to further reduce its dependence on fossil-based fuel and diversify its energy mix in the direction of cheaper, cleaner and greener energy forms.

As pointed out by the IDB President, countries like Guyana and Suriname, which have only recently found oil, need not be shy about optimising their newly-found oil riches to advance their economic development. Indeed, the IDB is prepared to assist Guyana in its transition to a green economy. Guyana, he said, with its low carbon development strategy could be the ‘Norway’ of this hemisphere, one in which the oil wealth is utilised to enhance the quality of life of the Guyanese people in a sustainable and eco-friendly way.

Make no mistake about it. Oil and gas is a game changer and it is expected to impact big on the economic and social life of the Guyanese people in the coming years. However, that is a bit down the road. The country is still in need of development financing for the massive transformation and modernisation process currently underway and the IDB has signalled its intention to assist the country in that regard. Indeed, in the words of the IDB President, this could very well turn out to be the year of Guyana and the Caribbean as development financing is likely to more than double when compared to previous years. Guyana, unlike other countries in the region, is expected to experience extraordinary levels of growth due to exponential increases in oil revenues, projected to be among the highest in the world!

Guyana, in particular with rising fuel prices on the world market, could potentially benefit from a financial windfall. This is due in no small way to the turmoil in the global oil market following the Russian invasion of Ukraine and the raft of economic sanctions imposed by the United States and other western nations but these benefits could be negated by rising cost of fuel on the domestic market and rising food prices.

The fact is that despite an increasing flow of oil revenues, we are still a country with a relatively modest per capita income and a country now in transition to middle income status. This is why it is so important to continue to attract foreign investment and secure bilateral and multilateral assistance in order to accelerate the pace of development comparable to that of high income countries.