THE Iwokrama International Centre for Rain Forest Conservation and Development and the Georgetown Chamber of Commerce and Industry (GCC) in separate statements have commended the Government of Guyana for earning significant revenue from the country’s forest resources through the sale of carbon credits.

Guyana was issued 33.47 million forest carbon credits for preventing and reducing deforestation and forest degradation in the period 2016-2020. The country has since been able to sell 30 per cent of its carbon credits to Hess Corporation for a minimum of US$750 million.
The new agreement is the world’s first under the Architecture for REDD+ Transactions (ART) initiative and The REDD+ Environmental Excellence Standard (TREES) system.
“It is important to note that accreditation under the TREES process includes the quantification, monitoring, reporting and verification of Greenhouse Gas (GHG) emission reductions and removals from REDD+ activities at a jurisdictional and national scale, which is assessed and verified by international third-party auditors.

Guyana’s success in this process is a significant and signal achievement,” Iwokrama said in a statement on Wednesday.

The centre added: “Indeed, the landmark Low Carbon Development Strategy (LCDS) initially launched in 2009 was innovative in demonstrating the value of forest services in combatting climate change, while concurrently providing economic returns that maintain livelihoods and contribute beyond traditional means of the timber trade, to the gross domestic product (GDP).”

Of equal importance, the centre said, is the substantial financial benefits provided by the agreement to the local communities – the true stewards of Guyana’s forests.
The wider scope LCDS 2030 to include blue carbon and other natural assets, exemplifies the ever increasing prominent role forests and the environment hold on the national agenda.

Chief Executive Officer of Iwokrama, Dane Gobin, said: “These are exciting times for Guyana as it continues to mobilise its forest services in the fight against climate change.”

The 1,000,000-acre Iwokrama Forest is an integral part of Guyana’s demonstration of how tropical forests can be conserved and utilised sustainably for local, national and global benefit.

Gobin said that the Guyana – Hess agreement signals, finally, recognition by the private sector of the substantial value of ecosystem services and the urgent need to sustain them.

The GCCI, in its statement, said this agreement assists Guyana in building its resilience to climate change and transitioning to a sustainably stable economy.

In its statement congratulating President, Dr Irfaan Ali; Vice-President, Dr. Bharrat Jagdeo and the wider government, the GCCI said sale of carbon credits which covers 10 years, will see Guyana being compensated for keeping its rainforests intact.

GCCI understands that the purchase by Hess will be for 2.5 million credits per year for the years 2016-2030.

“GCCI applauds the government for making Guyana the first country to complete the ART process (Architecture for REDD+ Transactions) for generating high-integrity, Paris Agreement-aligned carbon credits that will allow Guyana to access market-based finance to continue to implement forest-stewardship strategies,” the chamber said.

Following the 2009 Norway REDD+ agreement and COP27, GCCI sees this second agreement as an indication that highly developed nations are increasingly recognising the value of forest climate services.

With rising sea levels, warmer temperatures, and more adverse weather conditions, climate change is evident. In June 2021, Guyana experienced severe flooding in several regions, adversely affecting the agricultural and infrastructural sectors and compromising food security.